China Plans Biggest Changes Yet to Lift Carbon Market Impact (1)

China plans to tighten supply in its national carbon market to compel large polluters to curb emissions, the most significant step yet to bolster a system that’s so far delivered little support for climate action.

The Ministry of Ecology and Environment, which oversees the trading of emissions permits, has asked businesses to comment by Tuesday on draft plans that would aim to address overallocation of allowances and set limits on the volume that can be carried over to the following year, according to people familiar with the details.

Changes would see China’s power utilities — the only sector currently included ...