On July 22, the General Office of the Ministry of Ecology and Environment issued the Notice on Public Solicitation of Opinions on the Total Quota and Allocation Scheme for the Power Generation Industry in the National Carbon Emission Trading Market in 2025 and 2026 and the Iron and Steel, Cement and Aluminum Smelting Industry in 2026 (Draft for Opinions).
In order to effectively allocate quotas for power generation, iron and steel, cement and aluminium smelting industries, and further play the important role of market mechanism in controlling greenhouse gas emissions and reducing the cost of emission reduction in the whole society, according to the Interim Regulations on the Management of Carbon Emission Trading. The Ministry of Ecology and Environment has organized and compiled the National Carbon Emission Trading Market 2025, 2026 Power Generation Industry and 2026 Iron and Steel, Cement, Aluminum Smelting Industry Quota and Distribution Scheme (Draft for Comments), which is now open for comments. The draft for soliciting opinions and its compilation instructions can be searched and consulted in the column of "Soliciting Opinions" on the website of our Ministry (https://www.mee.gov.cn).
All organs, organizations, enterprises, institutions and individuals can put forward their opinions and suggestions. Relevant opinions should be fed back to our department in writing, and electronic materials should be sent to the contact mailbox at the same time. The deadline for consultation is August 5, 2026.
Contacts: Jiang Songhua, Xue Yusen, Department of Climate Change Response
Tel: (010) 65645634, 65645635
Email: climate_china@mee.gov.cn
Address: No.
12, East Chang'an Avenue, Dongcheng District, Beijing Postal Code: 100006
The Notice States that iron and steel enterprises, The carbon emission intensity coefficient of cement clinker production line and aluminum electrolysis process is determined according to the gap between the carbon emission per ton of products of the main process and the industry balance value, namely the carbon emission intensity deviation degree (X) (Table 3). The balance value of steel, cement and aluminum smelting industries in each year is the corresponding carbon emission intensity level of main processes when the total amount of carbon emission quotas of each industry is equal to the total amount of quotas that should be paid (verified emissions) according to the quota allocation method specified in this scheme and based on the annual carbon emission verification results of key emission units in each industry (see the following calculation formula for details). The balance value reflects the overall carbon emission performance (benchmark level) of each industry, and is an important basis for determining the carbon emission intensity deviation and carbon emission intensity coefficient of each enterprise (production line, process), which can be queried through the national carbon market management platform (hereinafter referred to as the management platform). The formula for calculating the deviation of carbon emission intensity of
cement clinker production line is as follows:
for key emission units (units, production lines, processes) with special production processes, raw materials and fuels, their annual approved quotas are equal to their actual carbon emissions after verification. The cement industry specifically includes the following situations:
(1) production lines that only produce white Portland cement clinker in the current year;
(2) cement clinker production lines that have a substitution rate of carbide slag exceeding 30% in the current year; and
(3) production lines that produce Portland cement clinker as a by-product of the production of sulfuric acid from gypsum.
(4) Enterprises (units, production lines and processes) that were shut down before the approval of the quota;
(5) Units, production lines and processes that were newly put into operation in the current year;
(6) Enterprises whose greenhouse gas emissions were less than 26,000 tons of carbon dioxide equivalent in the current year after verification.
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