Expected inclusion of new sectors in China's ETS 2024-2028
The China emissions trading system (ETS) was launched in 2021 and covers roughly 4.5 billion metric tons of carbon dioxide emissions, making it the biggest carbon market in the world based on coverage. As of 2023, the China ETS covered only power sector emissions, but more sectors and industries are expected to be included in the coming years. The petrochemical sector was seen as the most likely to be covered next, with 12 percent of International Emissions Trading Association members expecting this to occur by 2024. The steel and non-ferrous metals sectors were expected to follow as the most likely to be included by 2024. The China ETS currently runs alongside regional pilot systems, but these are gradually transitioning to the national system.