The report of the 20th National Congress of the Communist Party of China clearly pointed out that we should actively and steadily promote carbon peak and carbon neutrality. Carbon emission trading is a major institutional innovation to control and reduce carbon dioxide and other greenhouse gas emissions through market mechanisms, promote green and low-carbon development, and is also an important policy tool to help actively and steadily promote carbon peak and carbon neutrality.
In July 2021, the national carbon emission trading market was officially put into operation, and on January 25, 2024, the Interim Regulations on the Administration of Carbon Emission Trading (hereinafter referred to as the "Regulations") were promulgated, which will come into force on May 1, 2024. The Regulations are the first special administrative regulations in the field of climate change in mainland China, providing a clear legal basis for the operation and management of the national carbon emission trading market, and ensuring and promoting its healthy development.
Today, Jing Xiaomallet will take you to read the article
Carbon emission trading regulations!
What is bought and sold in the carbon emission trading market?
The carbon emission trading market trades carbon emission allowances and other spot trading products approved by the State Council. Generally speaking, it is to buy and sell carbon dioxide emission rights as a commodity, and enterprises that need to reduce emissions will get a certain amount of carbon emission allocation, and if they succeed in reducing emissions, they can sell excess allowances, and if they exceed the emission limit, they need to buy allowances in the carbon market.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Paragraph 2 of Article 6 Carbon emission trading products include carbon emission allowances and other spot trading products approved by the State Council。
What are carbon emission allowances?
Carbon emission allowance is the carbon emission quota allocated by the government to the emission control enterprise for a specified period, and is the certificate and carrier of carbon emission rights.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Article 30, Paragraph 2 Carbon emission quota refers to the emission quota of carbon dioxide and other greenhouse gases allocated to key emitting enterprises within a specified period. One unit of carbon emission allowance is equivalent to emitting 1 tonne of carbon dioxide equivalent into the atmosphere.
What can carbon emission allowances be used for?
Key emitting enterprises shall be obliged to pay carbon emission allowances equivalent to their verified and confirmed greenhouse gas emissions in the previous year to the competent department of ecology and environment within the prescribed time limit。 The state converts greenhouse gas emission control targets into carbon emission quotas and allocates them to key emitting entities for the purpose of fulfilling their payment obligations. If the actual carbon emissions of key emitting entities are less than the quota allocated by the state, the excess carbon emission allowance can be traded, in order to achieve the emission control target at a relatively low cost.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Paragraph 1 of Article 14 Key emitting enterprises shall, in accordance with the verification results of the annual emission report by the competent department of ecology and environment of the provincial-level people's government, pay their carbon emission quotas in full in accordance with the time limit prescribed by the competent department of ecology and environment under the State Council。
Article 30 (3) "Clearance" refers to the act of key emitting enterprises paying carbon emission quotas equivalent to the actual greenhouse gas emissions of the previous year that have been verified and confirmed by them to the competent department of ecology and environment within the prescribed time limit.
Which units are key emitting enterprises?
Then other people can't participate in the transaction?
The competent department of ecology and environment under the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control targets, formulate the conditions for determining key emitting entities。 The competent departments of ecology and environment of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter collectively referred to as provincial-level people's governments), together with the relevant departments at the same level, shall, in accordance with the conditions for determining key emitting enterprises, formulate an annual list of key emitting enterprises in their respective administrative regions。
At present, only key greenhouse gas emitting entities (hereinafter referred to as key emitting enterprises) and other entities that meet the relevant national regulations can participate in carbon emission trading.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Article 8 The competent department of ecology and environment under the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control targets, formulate the conditions for determining key emitting entities。 The competent departments of ecology and environment of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter collectively referred to as provincial-level people's governments), together with the relevant departments at the same level, shall, in accordance with the conditions for determining key emitting enterprises, formulate an annual list of key emitting enterprises in their respective administrative regions。
Do I need to pay for carbon emission allowances allocated by the state?
At present, carbon emission allowances are allocated free of charge, and a combination of free and paid allocation methods will be gradually implemented according to relevant national requirements.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Article 9 (1) The competent department of ecology and environment under the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control targets, comprehensively consider factors such as economic and social development, industrial structure adjustment, industry development stage, historical emissions, and market regulation needs, formulate an annual carbon emission quota total amount and allocation plan, and organize its implementation。 Carbon emission allowances shall be allocated free of charge, and a combination of free and paid allocation methods shall be gradually implemented according to the relevant national requirements。
The actual carbon emissions of key emitting enterprises is the key to determining whether there are allowances for trading, so how to determine the actual carbon emissions?
At present, domestic carbon trading implements a reporting-verification system. Key emitting enterprises shall, independently or entrusting a technical service institution established in accordance with law, to carry out inspections and tests related to greenhouse gas emissions, truthfully and accurately calculate the greenhouse gas emissions of their own units, prepare a greenhouse gas emission report for the previous year, and submit the emission statistical accounting data and annual emission report to the competent department of ecology and environment of the provincial-level people's government where their production and business sites are located in accordance with regulations. After verifying the annual emission reports submitted by key emitting enterprises, the competent authorities shall confirm their actual greenhouse gas emissions。
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Article 11 Key emitting enterprises shall take effective measures to control greenhouse gas emissions, formulate and strictly implement a quality control plan for greenhouse gas emission data in accordance with the relevant provisions of the State and the technical specifications formulated by the competent department of ecology and environment under the State Council, use measuring instruments that have passed the measurement verification or calibration in accordance with the law to carry out inspection and testing related to greenhouse gas emissions, truthfully and accurately calculate the greenhouse gas emissions of their own units, compile the greenhouse gas emission report of the previous year (hereinafter referred to as the annual emission report), and carry out statistical accounting data on emissions in accordance with regulationsThe annual emission report shall be submitted to the competent department of ecology and environment of the provincial-level people's government where the production and operation sites are located.
Key emitting enterprises shall be responsible for the authenticity, completeness and accuracy of their emission statistics and accounting data and annual emission reports。
Key emitting enterprises shall, in accordance with relevant state regulations, disclose to the public information such as emissions, emission facilities, and statistical accounting methods in their annual emission reports。 The original records and management ledgers of the data involved in the annual emissions report shall be kept for at least 5 years.
Key emitting enterprises may entrust a technical service organization established in accordance with the law to carry out inspections and tests related to greenhouse gas emissions and prepare annual emission reports。
If someone does not truthfully carry out inspections and tests and prepare emission reports, are there any penalties?
Key emitting entities and technical service institutions need to be responsible for the authenticity, completeness and accuracy of the report. Key emitting enterprises will face penalties of confiscation of illegal gains, fines, and even suspension of production for rectification if they commit fraud, while technical service providers will face penalties of confiscation of illegal income, fines, and even cancellation of qualifications if they issue false or false reports.
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Article 22 In any of the following circumstances, a key discharging enterprise shall be ordered by the competent department of ecology and environment to make corrections, confiscate its illegal gains, and impose a fine of not less than 5 times but not more than 10 times the amount of its illegal gains; if it has no illegal gains or its illegal gains are less than 500,000 yuan, it shall be fined not less than 500,000 yuan but not more than 2,000,000 yuan; if it refuses to make corrections, it shall be fined not less than 50% but not more than 200,000 yuan The following proportions will be reduced by their carbon emission allowances for the next year, and they may be ordered to suspend production for rectification:
(1) Failing to calculate greenhouse gas emissions in accordance with regulations;
(2) There are major defects or omissions in the preparation of the annual emission report, tampering with or falsifying data in the process of preparing the annual emission report, using false data or other fraudulent acts;
(3) Failure to make and submit samples for testing in accordance with regulations.
Article 23 Where a technical service institution issues a false or false inspection and testing report, the competent department of ecology and environment shall order it to make corrections, confiscate the illegal gains, and impose a fine of not less than 5 times but not more than 10 times the illegal gains; if there are no illegal gains or the illegal gains are less than 20,000 yuan, a fine of not less than 20,000 yuan but not more than 100,000 yuan shall be imposed; and if the circumstances are serious, the department responsible for qualification certification shall cancel its inspection and testing qualifications.
If the actual emissions exceed the quota and there are not enough carbon emission allowances, can there be other ways to fulfill the payment obligation?
Key emitting enterprises can also use the national certified voluntary emission reductions to offset the settlement of carbon emission allowances, but they shall not exceed 5% of the quota to be paid, and shall not come from emission reduction projects that are included in the quota management of the national carbon emission trading market。
Related Laws:
Interim Regulations on the Administration of Carbon Emission Trading
Paragraph 3 of Article 14 Key emitting enterprises may, in accordance with the relevant provisions of the State, purchase certified greenhouse gas emission reductions for the purpose of paying their carbon emission allowances。
Measures for the Administration of Carbon Emission Trading (for Trial Implementation)
Article 29 Key emitting enterprises may use the nationally certified voluntary emission reductions to offset the settlement of carbon emission allowances each year, and the offset ratio shall not exceed 5% of the carbon emission allowances to be paid。 The relevant regulations shall be formulated separately by the Ministry of Ecology and Environment.
The nationally certified voluntary emission reductions used for offsetting shall not come from emission reduction projects that are subject to quota management in the national carbon emission trading market。
Contributed by: Tongzhou Court
Editor: Ji Xinrui Wang Xi
Review: Zhang Zhongtao