China's Ministry of Ecology and Environment announced on Wednesday an expansion of the national carbon emissions trading market to include the steel, cement, and aluminum smelting industries, marking the first time the market has broadened its sectoral coverage since its 2021 launch. 

Speaking at a regular press briefing in Beijing,  Pei Xiaofei, spokesman for the ministry, revealed that the carbon market currently covers 2,200 major emitters in the power generation sector, accounting for over 5 billion tons of annual carbon dioxide (CO2) emissions. 

The addition of the steel, cement, and aluminum smelting industries, collectively responsible for approximately 3 billion tons of CO2 equivalent emissions annually, will increase the market's coverage to more than 60 percent of China's total carbon emissions.

"After this round of expansion, the national carbon market is expected to additionally include 1,500 more key emitters. As a result, it will cover over 60 percent of the country's total CO2 emissions, and the types of regulated greenhouse gases covered by it will increase to include carbon dioxide, carbon tetrafluoride and hexafluoroethane," said the spokesman.

Launched in July 2021 with a focus on the power sector, China's emissions trading scheme has operated steadily for nearly four years, driving green transitions in electricity generation. Official data show an 8.78 percent cumulative decline in the carbon intensity of full-scope power generation, reducing emission costs by about 35 billion yuan (abut 4.8 billion U.S. dollars).