Focus on Arts and Ecology

The big environmental stories in the Chinese media (14-20 May) 

Earlier this week China made a significant stride towards making the heavy emitting construction materials sector a part of the country’s nascent carbon market. China’s national carbon market is due to start trading in June and for the moment only covers the sprawling power sector. However, this week the climate department of China’s Ministry of Ecology and Environment (MEE) asked the China Construction Material Federation to initiate work on integrating the construction materials sector into the national carbon market.

Cement and glass production are two of the major emitters in the sector, as are steel, aluminium and wood product industries. According to a report by the China Association of Building Energy Efficiency, construction material production accounted for 28% of total national emissions in 2018. The three most energy intensive industries - steel, cement and aluminum production - accounted for 90% of the sector’s emissions.

“The initiating of work on integrating the construction materials sector into the national carbon market is a clear sign that the eight big industries -- thermal power, steel, petrochemicals, chemicals, non-ferrous metals, paper and aviation -- are one step closer to being covered by the market,” an analyst told 21st Century Business Herald.

The establishment of the national carbon market has been a protracted and difficult process. Now that the emissions trading system is already in place, integrating the construction materials sector should proceed at a faster pace.

Analysts at CITIC Securities said the decision could shake up the industry. Costs may increase as the sector readies for integration and medium and small sized enterprises, as well as those with less modern production methods, will likely be forced to close.

(Sources: China Dialogue)