Insight
Carbon pricing: A game-changer for China’s aluminium industry?
Report summary
Like other economies, China has implemented compliance carbon pricing as a key component of its decarbonisation policy toolkit, aiming to facilitate the shift towards cleaner and more sustainable economic practices. In 2016, China’s State Council announced the 13th five-year plan for greenhouse gas control, including introducing carbon pricing for non-ferrous metals production. In November 2022, the Chinese government rolled out the “Action Plan for Peaking Carbon Emissions in the Non-Ferrous Metals Industry”, reaffirming the inclusion of carbon emissions from key metals production in China’s national ETS. In April 2023, the government released the “Guidelines for Establishing Standards for Carbon Peaking and Carbon Neutrality” to accelerate the development of carbon emissions accounting standards for energy-intensive industries, including the non-ferrous metals sector.
Table of contents
- China aims to incorporate carbon emissions from aluminium production into its national Emissions Trading System (ETS)
- Aluminium industry not surprised
- How will the national ETS operate within the aluminium sector?
- Which emissions will likely fall under the scheme’s coverage?
- How significantly will carbon pricing impact operating costs?
- Carbon pricing will alter the long-term competitive landscape
- A positive step forward: empowering smelters with options and incentives
Tables and charts
This report includes 6 images and tables including:
- Two common methods to determine the number of allowances
- Anticipated carbon emissions boundary to be included in the national ETS (Highlighted in the red box)
- Impact of carbon pricing on China cash cost C1
- Impact of carbon pricing on cost competitiveness of aluminium-producing provinces
- Proportions of non-fossil power generation capacity within provincial regions (2023) and aluminium smelting carbon intensity (Scope 1&2)
- Total carbon emissions and intensity of aluminium smelting by country (Scope 1&2)
What's included
This report contains:
Other reports you may be interested in
Insight
China macro note 2023: China, energy transition and deglobalisation
China needs to expand its trade with developing countries to minimise its loss in deglobalisation.
$950
Commodity Market Report
China coal 10-year investment horizon outlook - 2023
China’s coal demand is on an inevitable decline, more so for metallurgical coal.
$10,000
Commodity Market Report
Global aluminium short-term outlook October 2023
Prices move above US$2200/t on Yunnan supply cuts and some encouraging macro news out of China.
$5,000
