HomeCarbon NewsChina's New Carbon Plan. How Does it Work?

China’s New Carbon Plan. How Does it Work?

China has created a national carbon emissions market to limit emissions throughout the country. The announcement comes after the EU has announced their own carbon pricing plans.

China’s plan is very similar to the concept of carbon credits. First, emission limits are given to companies based on data from the previous year. Buying or selling allowed emission amounts from other companies increases or decreases the max pollution limit.

As well, Companies involved in the plan are to submit emissions data annually. Then, the Ministry of Ecology and Environment checks the results. Exceeding the emission limits will result in fines or decreasing the allowable emission limit.

Initially, the program will include companies in the coal and gas sectors. The end goal is to cover 10,000 companies from all high-emission industries such as aviation, iron and steel, chemicals, and building materials.

China aims to be a net-zero emitter by 2060. Currently, China is responsible for 27% of the global carbon emissions. This could mark a huge shift in global carbon markets. As emissions decrease, the amount of credits available will also decrease.

President of China Xi Jinping said in a speech to the UN last September that China is on track to produce peak emissions before 2030. The new carbon plan is a step in the right direction that shows China’s willingness to fight in the battle against climate change.

Most Popular

Brazil’s Bill Will Allow Loggers to Earn $24M from Carbon Credits

Brazil’s Congress passed a bill that will make carbon credits available to private companies with forest concessions, serving a first step in regulating the...

Global Renewable Energy to Break Records in 2023, IEA Says

Global additions of renewable power capacity will increase by a third this year, says the International Energy Agency (IEA). In the IEA's 2023 Renewable Energy...

Equatic Reveals First-of-a-Kind Ocean CO2 Removal Tech, Inks Deal with Boeing

Ocean carbon removal startup Equatic launches breakthrough low-cost, gigaton-scale climate technology and signs a pre-purchase deal with Boeing. L.A.-based Equatic is an UCLA Samueli School...

Lithium-Ion Wars: US Battery Imports Soar by 66%, Setting New Record as Domestic Production Ramps Up

According to S&P Global, in the first quarter of 2023, US imports of lithium-ion batteries surged by nearly 66% from the previous year, reaching...

What are the Effects of Methane Emissions and Why Should We Care?

What are the effects of methane emissions? That’s the multi-million dollar question in the world’s battle over global warming as methane was often overlooked...

Carbon Credits and the Future of Sustainable Business: Exploring Best Practices

The trading of carbon credits can help entities and the world meet their climate goals by cutting carbon emissions and practicing sustainable business. While...

Revolutionizing Textile Recycling with HTC

A Virginia-based startup, Circ, has developed a unique hydrothermal processing technology for recycling blended textiles, like polyester-cotton blends. With fast fashion's emissions and environmental...

Carbon Credits and the Sustainable Development Goals: Aligning Climate Action with Global Priorities

Carbon credits from climate actions represent a crucial part of a strategy to mitigate climate change while supporting the global priorities on advancing sustainable...