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to contend with its eventual inclusion in the fledgling national carbon market, with smaller players operating older outdated plants at risk of being edged out of the industry.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
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
