#BTC China plans to impose absolute emission caps on its carbon market by 2027. This change represents a major shift in its approach.

How China's carbon market works

* Current status: China's carbon market is currently based on carbon intensity standards, not absolute caps. This means companies must reduce their emissions per unit of production, but there is no overall emission limit.

* Change in 2027: China will begin implementing absolute emission caps for certain industries by 2027. This means capping the total amount of emissions allowed for those industries, making the system more stringent and effective in achieving its climate goals.

* Expansion: China also plans to expand its market to include new sectors such as steel, cement, and aluminum, in addition to the energy sector currently covered by the market.