China collects feedback on project to measure emissions in steel industry

The country plans to expand the national carbon market by the end of 2024

China is seeking public feedback on new guidelines for reporting greenhouse gas emissions in the steel industry. Reuters reports this with reference to the country’s Ministry of Ecology and Environment.

The move comes as part of efforts to prepare steelmakers to enter the country’s carbon market.

The guidelines are designed to standardize the way greenhouse gas emissions are measured in the industry and meet the needs of an expanding national carbon market, the ministry said in a statement. Proposals for the new rules, which will apply to all steel mills participating in the carbon market, will be accepted until December 16.

China’s steel sector accounts for about 17% of the country’s total greenhouse gas emissions, with most plants still heavily reliant on blast furnaces and coal-fired power generation.

Chinese steelmakers produce an average of 2.3 tons of carbon dioxide per ton of steel produced, which is higher than the global average of 1.4 tons, according to a recently released report by the Asia Research & Engagement think tank.

In September, China published a draft plan to expand its national emissions trading scheme to the steel, cement, and aluminum industries by the end of this year. As a result, hundreds of companies have faced the need to strengthen their monitoring capacity. New international mechanisms, such as the European CBAM, also require exporters from China and other countries to fully report on the carbon emissions they generate in the production of their products.

As GMK Center reported earlier, China’s mandatory carbon market currently covers about 2.2 thousand energy companies. Its expansion will pave the way for the inclusion of seven additional sectors – Beijing aims to cover 70% of its total emissions by 2030.