A technical workshop on inclusion of iron and steel sector into ETS, supported by the EU-China ETS Cooperation Platform II Project, was held online on May 16.

This workshop provided an opportunity for exchange between experts from China and the Europe, to help the Chinese experts better understand the EU's experience in allocation in the iron and steel industry, which can be used as a reference for China's efforts to include the iron and steel industry into the national carbon market.

In this meeting, Chinese experts introduced the progress and measures of China's iron and steel industry's low-carbon transformation from three aspects: the current development stage of the industry, the main paths for the iron and steel industry to achieve low-carbon transformation, and the experience of iron and steel enterprises in low-carbon transformation practices.

In terms of the low-carbon transformation roadmap of China's iron and steel industry, the China Iron and Steel Association has released a vision and technical roadmap for the iron and steel industry to implement the "dual carbon" goals and formulated six main technical routes for the industry to achieve the "dual carbon" goals. Li Bing, the expert from the Metallurgical Planning and Design Institute said that the low-carbon transformation of China's iron and steel industry will be driven by a "policy + market" approach, with both a strong policy support system and an efficient market-driven system. Among these, the carbon market will be an important tool of marketization.

Mr. Heiko Kunst, representative from Directorate General for Climate Action (DG CLIMA), European Commission, gave a comprehensive introduction to the EU Emissions Trading System (EU ETS) for the iron and steel industry, including the entry threshold, installation boundaries, waste gas control, benchmark setting, free allocation and corresponding considerations, and an overview of MRV for the iron and steel industry in the EU.