Beijing city preparing businesses for carbon market expansion

(China Dialogue, 10 Nov 2022) The city has asked some non-power companies to start reporting their emissions, but no new sectors have yet been added to the national carbon market.

Beijing’s environmental watchdog prompted speculation in late September when it named several non-power companies as “reporting entities” set to participate in China’s national emissions trading scheme (ETS) for 2022.

However, experts have told China Dialogue that the announcement does not mean the five implicated sectors – petrochemicals, chemicals, building materials, steel and civil aviation – have been absorbed into the national ETS.

Rather, it shows that the city’s authorities are preparing some businesses for a future expansion of the ETS, they added.

China’s national carbon market began trading in July 2021, and so far only covers the power sector, accounting for around 40% of national carbon dioxide (CO2) emissions. During its first year, more than 2,000 power companies were obliged to account for their CO2 emissions from the previous two years.

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China Dialogue, 10 Nov 2022: Beijing city preparing businesses for carbon market expansion