China’s Ministry of Ecology and Environment released quota allocation plans covering power generation for 2025 and 2026, alongside steel, cement, and aluminum sectors for 2026.
Based on intensity control and free allocation principles, the framework applies carbon intensity benchmark methods for power generation and intensity coefficient approaches for steel, cement, and aluminum industries.
Covered entities receive preliminary allocations equal to 50% of the previous year’s verified emissions, with final settlements conducted after annual data verification.
Enterprises must surrender allowances matching verified emissions by December 31 each year, with provisions allowing certified voluntary emission reductions for compliance offset.