China on 26 March issued the official work plan for expanding its national ETS scope to the cement, steel and electrolytic aluminium sectors. While largely reflecting the contents of the earlier draft, the official plan further clarifies that there will be no 2024 compliance obligations for newly-added entities, the benchmark approach will be directly adopted from the subsequent compliance period and absolute cap on emissions is not yet on vision. We expect this latest update to have a slight bearish impacts on prices of carbon allowances in the national ETS.
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