China is inviting public feedback on draft guidelines aimed at measuring greenhouse gas emissions in the steel industry, as part of its broader strategy to integrate steel mills into the national carbon market.
Key Highlights:
Draft Guidelines Announcement:
The Ministry of Ecology and Environment announced the guidelines on Friday, emphasizing the need for standardized measurement of greenhouse gas emissions within the steel sector. Feedback from the public is welcomed until December 16.
Expansion of Emissions Trading Scheme:
In September, China revealed plans to extend its emissions trading scheme to include the steel, cement, and aluminum sectors by the end of the year. This move will subject hundreds of firms to stricter emissions monitoring requirements.
International Compliance Pressures:
New international regulations, such as Europe’s Carbon Border Adjustment Mechanism, necessitate that exporters from China and other countries fully account for carbon emissions associated with their production processes.
Significance of the Steel Sector:
China’s steel sector is a significant contributor to the country’s total greenhouse gas emissions, accounting for approximately 17%. Most steel plants still rely on coal-fired blast furnaces and electricity, resulting in an average emission of 2.3 metric tons of CO2 per ton of steel produced—well above the global average of 1.4 tons.