Shi Yichen, Assistant Dean of International Institute of Green Finance, Central University of Finance and Economics
Compared to other high-emission sectors, the cement, steel, and aluminum electrolysis industries are particularly well-positioned to participate in the national carbon market. They have demonstrated a sense of urgency in cutting emissions, the potential to coordinate pollution control and carbon reduction, robustness in data quality, and cost-effectiveness in marginal emission reductions.
The first round of expansion will bring in approximately 1,500 new key emitters, which is expected to result in an increase in carbon prices and the vitality of the carbon market. The growing heterogeneity within the industry will also help to diversify the market’s risk appetite, leading to a more rational carbon pricing structure. This will enhance the market’s ability for carbon price discovery and better reflect the varying costs of emission reductions across different entities. Moreover, the expansion will reduce the export burden posed by carbon tariffs in the industry.
