MEE Releases Allowance Allocation Plan for National Carbon Market

The Ministry of Ecology and Environment (MEE) has issued the Total Allowances and Allocation Plan for the Power Generation Sector for 2025 and 2026 and the Steel, Cement and Aluminum Smelting Sectors for 2026 in the National Carbon Emissions Trading Market (the "Plan").

The Plan applies to allowance allocation for the power generation sector for 2025 and 2026 and for the steel, cement and aluminum smelting sectors for 2026. Allowance allocation for the steel, cement and aluminum smelting sectors for 2025 shall be subject to the Plan for the Total Allowances and Allocation for the Steel, Cement and Aluminum Smelting Sectors for 2024 and 2025 in the National Carbon Emissions Trading Market. According to the Plan, each sector will maintain the policy intensity of previous years, with allowances continuing to be allocated free of charge based on carbon emission intensity control. The allocation methods will be further optimized, laying a solid foundation for the orderly implementation of an allowance allocation approach combining free and paid allocation in subsequent years. For the steel, cement and aluminum smelting sectors, given that they are still at the initial stage following full expansion, the allocation methods will remain unchanged from 2025. For the power generation sector, benchmark values for allowance allocation will be dynamically adjusted based on a comprehensive assessment of market operations and upon fully considering the actual development of the sector.



(Source: https://www.mee.gov.cn/xxgk2018/xxgk/xxgk03/202609/t20260903_1165029.html)

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