{"id":89529,"date":"2025-03-28T00:00:00","date_gmt":"2025-03-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2025\/03\/28\/chinas-emission-heavy-sectors-will-require-carbon-credits\/"},"modified":"2025-03-28T00:00:00","modified_gmt":"2025-03-28T00:00:00","slug":"chinas-emission-heavy-sectors-will-require-carbon-credits","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2025\/03\/28\/chinas-emission-heavy-sectors-will-require-carbon-credits\/","title":{"rendered":"China\u2019s emission-heavy sectors will require carbon credits"},"content":{"rendered":"

China plans to <\/strong>expand carbon<\/strong> market to include hard-to-abate sectors: <\/strong>China has issued plans to expand its carbon trading scheme to include steel, cement, and aluminium smelting industries, Reuters<\/a> reported on Wednesday, citing an Environment Ministry statement. The expansion will bring the total volume of carbon traded in the country from 5 bn metric tons to 8 mn, which is equivalent to more than 60% of China\u2019s total emissions, ministry spokesman Pei Xiaofei said.<\/p>\n

How does it work? <\/strong>The move will require 1.5k more firms to buy credits to offset their emissions if they exceed the emissions allowance the government has set. The allowance will be set against 2024 emissions, but will be gradually reduced to encourage emissions reduction while minimizing economic disruption. <\/p>\n

REMEMBER- <\/strong>China issued a comprehensive legal framework for its national emissions trading<\/a>scheme<\/a> in February 2024. The country had resumed carbon trading after a seven-year hiatus on its national voluntary carbon trading market on the Beijing Green Exchange the month prior, and revealed four new decarbonization assets from which carbon credits can be generated, including forestation, mangrove cultivation, solar thermal power, and grid-connected offshore wind power projects.<\/p>\n

\n

\n

Lithium outlook unstable on the short term, says Lopal: <\/strong>China-based Jiangsu Lopal Tech, a lithium production partner to the world\u2019s major battery maker Contemporary Amperex Technology\u2019s (CATL) \u2014 is forecasting volatility in the lithium market in the short term due to supply growth exceeding that of demand, Chairman Shi Jungfeng told Bloomberg<\/a> in an interview on Monday. Prices could move between CNY 65k-85k per ton compared to current trading at around CNY 73k. In the medium term, prices will rise and stabilize at about CNY 100k per ton, which will help sustain the industry over the long term. <\/p>\n

REFRESHER- <\/strong>Lithium prices were set to stabilize this year<\/a> \u2014 two years after an 86% price decline \u2014 on the back of surging EV sales in China and shuttered mines and refineries helping manage oversupply. It was expected, however, that the price adjustment would be halted if mines reopened. <\/p>\n

ICYMI: <\/strong>Lopal and CATL resumed operations<\/a> at their joint lithium carbonate refinery in China in February after a five-month pause, making it difficult for lithium prices to recover from a market surplus and unstable EV demand. <\/p>\n

\n

\n

China <\/strong>plans<\/strong> critical mineral reserve push:<\/strong> China\u2019s National Food and Strategic Reserves Administration is looking to buy up cobalt, copper, nickel, and lithium amid rising demand for resources for the energy transition and geopolitical uncertainty, Bloomberg<\/a> reported last week, citing unnamed sources. The move aims to alleviate pressure during crunch periods as well as balance supplies and make sure prices are stable. The authority has reportedly inquired about prices and made bids for some of the metals.<\/p>\n

REMEMBER- <\/strong>Beijing took steps earlier this year<\/a> to tighten its export controls on key technologies used in extracting and processing critical minerals to consolidate its control over EV supply chains worldwide. China targeted battery cathode tech and technology used in extracting and processing lithium, recycling batteries, and preparing phosphate, manganese, and lithium hydroxide and carbonate for battery production.<\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n