China opens consultation for aluminum smelters in ETS expansion

The Chinese Ministry of Ecology and Environment (MEE) has initiated a consultation process for the inclusion of aluminum smelters in its national compliance emission trading scheme (ETS). The move, announced on March 15, marks a significant expansion of China’s ETS, which currently covers only the power generation sector.

China boasts the world’s largest ETS, with approximately 5.1 billion metric tons of CO2 emissions covered annually. However, since its launch on July 16, 2021, the scheme has been limited to the power generation sector. The consultation for the aluminum industry signals the long-awaited expansion of the ETS, paving the way for additional industries to participate.