China formulating scheme of carbon emission right trading quotas in steel industry

BEIJING, May 28 (Xinhua) -- A scheme about the carbon emission right trading quotas in the domestic steel industry is under research and development, according to Li Xinchuang, president of China Metallurgical Industry Planning and Research Institute at a recent steel forum, quoted by the Xinhua-run Shanghai Securities News.

It shows a crucial stage for the carbon trading market of the steel industry, after the domestic power industry was firstly included in the national carbon emission trading market at the end of 2017.

China is the world’s largest steel producer and consumer, accounting for nearly 50 percent of the world’s crude steel production and the steel industry accounts for nearly 15 percent of China’s total carbon emissions. The low-carbon transition development is of great significance to China's steel industry, said Li.

The carbon emission trading market is recognized as an important means to guide the development of low-carbon enterprises.

In the past, the government encouraged energy conservation and emission reduction by both standards and subsidies. However, subsidies are not long-term measures and implementation of the standards is also difficult. By contrast, the mechanism of carbon emissions trading is a good method to regulate corporate behaviors, said Zhang Xiliang, a professor of Institute of Energy, Environment and Economy, Tsinghua University.