China is considering a number of tax changes for its mammoth steel industry to bolster efforts to clean up one of the dirtiest industries in the world’s top carbon emitter.

Officials are considering changes that would encourage imports and reduce exports, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. The measures highlight a focus on servicing the domestic market after the country pledged to cut steel production this year to curb the industry’s carbon emissions.

The tax changes may also alter global steel trade, as China is the biggest producer, importer and exporter. A move to restrict shipments overseas risks leaving a supply gap needing to be filled, just as optimism builds that a post-pandemic recovery will lift global demand. The market may also tighten if it coincides with a ramp up in purchases from foreign producers.

Changes being considered include lowering export rebates for some steel products, and cutting or removing import duties on some products, according to the people. China is also also considering cutting the value-added tax or income tax for domestic iron ore producers, or making companies exempt from the taxes. The details aren’t final and changes could be made, with some polices possibly announced as soon as April.

The country’s customs agency and Ministry of Finance didn’t immediately respond to faxes seeking comment, while calls to the tax bureau weren’t answered.

Steel makes up 15% of China’s carbon emissions, the biggest chunk among manufacturers, and is drawing increased scrutiny as the country plots its course to a carbon-neutral economy by 2060. There’s been a raft of output restrictions in the steel-making hub of Tangshan, and the industry is considering medium-term plans to hit peak emissions before 2025, and reduce them by 30% by 2030.

Steel prices have surged as output restrictions coincide with strong seasonal demand. Hot-rolled coil futures in Shanghai have jumped almost 10% in March and are near the highest since contracts began trading in 2014, while rebar is near the highest since 2011.