China to include steel, aluminum and cement in carbon quota system

The Chinese government has announced the implementation of a plan to extend carbon quotas to the steel, aluminum and cement industries. Carbon allowance prices rose more than 8 % to 66.86 yuan (9.40 USD) per ton, according to exchange data.

Pressure to secure allowances before the year-end deadline is helping to reverse declines after prices fell to a two-year low last month due to a surplus of credits. The Ministry of Ecology and Environment, the main market regulator to cut allowances year-by-year. 

It has also initiated preparatory work to include the chemical, petrochemical, aviation and paper-making sectors to cover all major industrial polluters by 2027.