China Released Total Quota and Allocation Plan for Emissions of Steel, Cement, and Aluminum Melting Sector (Public Consulting Version for 2024–2025)
On October 1, 2025, the Ministry of Ecology and Environment (MEE) of the People’s Republic of China issued a draft document titled “Total Quota and Allocation Plan for Emissions of the Steel, Cement, and Aluminum Melting Sector (2024 and 2025)” for public consultation.
This release marks a major policy step, signaling that China is close to completing the inclusion of the steel, cement, and aluminum industries into its national Emissions Trading System (ETS). Once implemented, this expansion will significantly influence carbon pricing, production efficiency, and the adoption of low-carbon technologies across these hard-to-abate industrial sectors.
The document outlines preliminary carbon emission caps, sectoral allocation methods, and monitoring guidelines designed to ensure fair participation and data transparency. Industry stakeholders are invited to submit feedback before the final plan is approved and enforced.
The inclusion of these heavy industries into China’s ETS will make the market cover over 70% of the country’s total CO₂ emissions, positioning China as the largest carbon trading market in the world by sectoral scope.
