[Policy Update] Ministry of Ecology and Environment Issues the “Allowance Cap and Allocation Plan for the National Carbon Emissions Trading Market (2024–2025) Covering the Iron & Steel, Cement, and Aluminum Smelting Sectors”

📰 News Highlight

Recently, the Ministry of Ecology and Environment (MEE) released the Allowance Cap and Allocation Plan for the National Carbon Emissions Trading Market (2024–2025) for the Iron & Steel, Cement, and Aluminum Smelting Sectors. The document officially incorporates these three key industries into the national carbon market and adopts a phased approach to free allowance allocation based on the “actual emissions + intensity adjustment” mechanism.

⚙️ Core Components

1.       Refining the processes of preliminary allocation, verified distribution, compliance settlement, carry-over rules, and differentiated treatment of enterprises based on performance.

2.       Establishing a carbon intensity coefficient linked to industry benchmark levels, promoting continuous improvement in carbon performance.

💡 Key Takeaways

1.       Integrated Compliance and Offset Mechanisms: It introduces unified Certified China Emissions Reduction (CCER) offset rules, ensuring a more flexible compliance system.

2.       Promotion of Low-Carbon Substitution Pathways: By encouraging the use of alternative materials, the Plan reflects China’s policy orientation toward a fairer, more efficient, and incentive-driven carbon market framework.

[Market Update] 2025 Best Practice Cases for Sustainable Development of China’s Listed Companies Released

📰 News Highlight

The China Association for Public Companies (CAPCO) has published the 2025 Best Practice Cases of Sustainable Development for Listed Companies. The initiative aims to implement the guiding principles of the 20th CPC National Congress and the Fourth Plenary Session of the 20th CPC Central Committee, steadily advance sustainability work among listed companies, and highlight their progress and exemplary practices.

In 2025, the Association received 757 case submissions. Following three rounds of expert evaluation, integrity reviews, and rating-based screening, a total of 210 Best Practice Cases and 319 Excellent Practice Cases were selected.

💡 Key Takeaways

1.       Providing listed companies with standardized references for aligning with national strategies, regulatory expectations, and industry-leading practices.

2.       Reflecting rising corporate attention to ESG performance and demonstrate maturing sustainability governance across China’s listed companies.

[Carbon Market]

During November 24 – November 28, the total transaction volume of Carbon Emission Allowances (CEA) in Chinese National Carbon Market reached 187,414,557 tons, with a total transaction value of USD 1,631,927,637.96. The highest price was USD 8.49/ton, and the lowest price was USD 8.04/ton. For bulk agreement transactions, the volume was 6,393,308 tons, with a transaction value of USD 53,398,408.46.