BEIJING -- China is set to expand its national carbon market to cover all major industrial emitters by 2027 amid efforts to leverage market mechanisms for green and low-carbon transition, according to the Ministry of Ecology and Environment (MEE).

According to the Communist Party of China Central Committee's recommendations for the 15th Five-Year Plan (2026-30), efforts will be made to expand the China Carbon Emission Trade Exchange to cover more sectors. The ministry has already launched preparatory work to include the chemical, petrochemical, civil aviation and paper manufacturing sectors.

For the steel, cement and aluminum smelting industries, which were added to the market in March, the MEE recently issued quota allocation plans for 2024 and 2025.

Key emitters in these newly added sectors must complete their quota compliance for 2024 by the end of this year. Quotas for 2025 will be pre-allocated in the first half of next year, with compliance due by the end of 2026.

Xia Yingxian, an official with the ministry, said the expansion would enforce emission reduction responsibilities and drive investment in low-carbon technologies.

The ministry plans to expand coverage gradually, adding new industries only when they meet strict data and emissions standards.