China’s leadership has pledged to expand the national emissions trading system, which currently covers only power plants.

China’s carbon market trading, launched in 2021, has had low prices compared to Europe, and that is not enough to have an impact on large polluters.

Prime Minister Li Keqiang announced plans to broaden the system by including steel, aluminum, and cement sectors by the end of this year. Additionally, China will introduce initiatives for carbon emissions statistics, labeling, and certification while also removing barriers to green trade.

The country aims to raise renewable energy capacity, integrate it into local power grids, and test low-carbon modernization at coal-fired power plants.