China sets 2027 goal to include major sectors in carbon trading

Only power generators are currently part of the country's carbon market.

All major industries are set to participate in the carbon trading market in China over the next two years, based on government targets.

Citing newly issued guidelines from the General Office of the Communist Party of China Central Committee and the General Office of the State Council, news agency Xinhua said the plan is to include all major industrial sectors by 2027.

The Chinese government's goal is to have a fully established national carbon trading market by 2030. At present, only power generators are part of the market, with the trio of steel, aluminium, and cement slated for inclusion this year, according to a Bloomberg report.

The carbon market, which facilitates the trading of carbon credits to manage greenhouse gas emissions, will be complemented by a national voluntary greenhouse gas emission reduction trading market.

Aside from market expansion, the new guidelines also seek to bolster oversight, improve trading products and the quota allocation system, and enhance carbon emission accounting.