China’s carbon market to cover eight industries

China’s carbon-trading system will include eight industries when it is introduced in 2017, according to the country’s economic planning agency.

In a statement on Friday, the National Development and Reform Commission said the system will cover the petrochemical and power industries, along with chemicals, construction material, nonferrous metals, steel, papermaking and aviation.

The introduction of a national carbon-trading scheme is part of wider efforts by China to reduce greenhouse gas emissions emissions and combat serious air pollution and smog that has affected major cities including the capital Beijing (pictured).

Last year, China pledged to reach peak emissions by 2030 and is making developments in solar and wind energy capacity.

The national carbon market will use a cap-and-trade system introducing a mechanism for the biggest polluters to buy credits from smaller polluters.

The system is designed to encourage companies to cut their GHG emissions so they can sell unused allocations.

China is already running seven pilot carbon market schemes across the country.

The market will cover firms with a combined energy consumption of about 10,000 metric tonnes of coal in any year between 2013 and 2015, the NDRC said.

The Commission has requested China’s Civil Aviation Administration, industry bodies and local authorities to report companies that can be included in the new system by March.