Total Allowance Cap and Allocation Plan for the Power Generation Sector for 2025 and 2026 and the Iron and Steel, Cement, and Aluminum Smelting Sectors for 2026 under the National Carbon Emissions Trading Market (Draft for Comments)

The Plan applies to power generation enterprises included in the national carbon emissions trading market list of key emitting entities, as well as iron and steel, cement, and aluminum smelting enterprises for 2026. Allowances for the power generation sector are allocated free of charge by generating unit using the carbon-emission-intensity benchmark method, while those for the iron and steel, cement, and aluminum smelting sectors are allocated by enterprise, clinker production line, or aluminum electrolysis process using the intensity-coefficient method; special cases receive allowances equal to verified emissions. Allowances are issued through pre-allocation and final determination, and key emitting entities must surrender allowances equal to verified emissions and may use CCERs registered during the prescribed period for offsetting. The Plan proposes to abolish the allowance banking policy and provides exemption arrangements for gas-fired units and power enterprises with compliance shortfalls.