Refining and petrochemicals are expected to be enrolled this year or next
Chinese refiners face carbon trading risk
Beijing’s net-zero commitment means the refining and petrochemicals sector is likely to be included in the country’s ETS scheme sooner rather than later
China’s refining and petrochemicals sector—already squeezed by escalating lockdowns from a growing Covid outbreak—will need to contend with its eventual inclusion in the fledgling national carbon market, with smaller players operating older outdated plants at risk of being edged out of the industry. China—which accounted for one-third of global CO₂ emissions last year—launched its long-awaited emissions trading system (ETS) in July 2021 after repeated delays. Cumulative trading had reached 179mn t by the end of last year, with an aggregate transaction value of RMB8.1bn ($1.27bn). The system covers only the thermal power generation sector, but as this accounts for 40pc of the country’s carbon
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
