February 4,State Council (PRC)Premier Li Qiang recently signed a State Council decree to publicize thecarbon rightProvisional Regulations on the Administration of Transactions (hereinafter referred to as the "Regulations"), effective May 1, 2024
The original text follows:
Order of the State Council of the People's Republic of China
No. 775
The Interim Regulations on the Administration of Carbon Emission Trading have been adopted at the 23rd executive meeting of the State Council on January 5, 2024, and are hereby promulgated and shall come into effect on May 1, 2024.
Premier Li Qiang
January 25, 2024
Interim Regulations on the Administration of Carbon Emission Trading
Article 1 These regulations are formulated for the purpose of regulating the trading of carbon emission rights and related activities, strengthening the control of greenhouse gas emissions, actively and steadily promoting carbon peaking and carbon neutrality, facilitating green and low-carbon economic and social development, and advancing the construction of an ecological civilization.
Article 2 The present Regulations shall apply to the trading of carbon emission rights and related activities in the National Carbon Emission Rights Trading Market.
Article 3 The management of carbon emissions trading and related activities shall adhere to the leadership of the Communist Party of China, implement the party and state lines, policies and decisions, adhere to the control of greenhouse gas emissions in line with economic and social development, adhere to the combination of government guidance and market regulation, and follow the principles of openness, fairness and justice.
The State strengthens international cooperation and exchanges in the field of carbon emissions trading.
Article 4 The competent ecological and environmental authorities under the State Council shall be responsible for the supervision and management of carbon emissions trading and related activities. The relevant departments under the State Council shall, in accordance with the division of responsibilities, be responsible for the supervision and management of carbon emission trading and related activities.
The competent ecological and environmental authorities of the local people's governments are responsible for the supervision and management of carbon emissions trading and related activities within their administrative regions. The relevant departments of the local people's government shall, in accordance with the division of responsibilities, be responsible for the relevant supervisory and management work of carbon emission right trading and related activities within the administrative area.
Article 5 The national carbon emission rights registry shall, in accordance with the relevant provisions of the State, be responsible for the registration of carbon emission rights trading products and the provision of services such as trade settlement. The national carbon emissions trading institution shall, in accordance with the relevant provisions of the State, be responsible for organizing and carrying out centralized and unified trading of carbon emissions rights. The fees for registration and trading shall be reasonable, and the fee items, fee standards and management methods shall be disclosed to the public.
The National Carbon Emission Right Registry and the National Carbon Emission Right Trading Institution shall, in accordance with the relevant provisions of the State, improve the relevant business rules and establish a risk prevention and control and information disclosure system.
The competent ecological and environmental authorities under the State Council, in conjunction with the market supervision and administration authorities under the State Council, the People's Bank of China and the banking supervision and administration authorities under the State Council, shall supervise and manage the National Carbon Emission Rights Registry and the National Carbon Emission Rights Trading Institution, and shall strengthen information-sharing and law-enforcement collaboration and cooperation.
Carbon emissions trading should be gradually incorporated into a unified public resources trading platform system.
Article 6 The types of greenhouse gases and the scope of industries covered by carbon emissions trading shall be studied and proposed by the competent ecological and environmental authorities under the State Council, in conjunction with the State Council's development and reform departments and other relevant departments, in accordance with the national greenhouse gas emissions control targets, and reported to the State Council for approval before implementation.
Carbon emission right trading products include carbon emission allowances and other spot trading products approved by the State Council.
Article 7 Key greenhouse gas emitting units (hereinafter referred to as key emitting units) that are included in the national carbon emissions trading market, as well as other subjects in compliance with relevant state regulations, may participate in carbon emissions trading.
Staff members of the competent ecological environment department, other departments with supervisory and management responsibilities for carbon emission rights trading and related activities (hereinafter referred to as other departments with supervisory and management responsibilities), the national carbon emission rights registry, the national carbon emission rights trading organization, and the technical service organizations stipulated in these Regulations shall not participate in carbon emission rights trading.
Article 8 The competent ecological and environmental authorities under the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control objectives, formulate the conditions for determining key emission units. The competent ecological and environmental authorities of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter collectively referred to as provincial people's governments), in conjunction with the relevant departments at the same level, shall, in accordance with the conditions for determining the key emission units, formulate an annual list of the key emission units in their own administrative regions.
The conditions for determining priority emission units and the annual list of priority emission units shall be made public.
Article 9 The competent ecological and environmental authorities 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 total annual amount of carbon emission quotas and the distribution plan and organize its implementation, taking into account such factors as economic and social development, industrial structural adjustment, the stage of development of the industry, the historical situation of emissions, and the need for market regulation. Carbon emission allowances are allocated free of charge, and a combination of free and paid allocation methods is gradually implemented in accordance with relevant national requirements.
The competent ecological and environmental authorities of the provincial people's governments, in conjunction with the relevant departments at the same level, shall issue carbon emission allowances to the key emission units within the administrative region in accordance with the total annual carbon emission allowances and the allocation program, and shall not issue or transfer carbon emission allowances in violation of the total annual carbon emission allowances and the allocation program.
Article 10 In accordance with the provisions of Articles 6, 8 and 9 of these Regulations, the study of the types of greenhouse gases and the scope of industries to be covered by carbon emissions trading, the formulation of the conditions for determining key emission units and the total amount of annual carbon emission quotas and the distribution plan shall seek the views of the provincial people's governments, relevant industry associations, enterprises and institutions, experts and the public.
Article 11 The key emission units shall take effective measures to control greenhouse gas emissions, in accordance with the relevant provisions of the State and the State Council department in charge of ecological and environmental protection formulated technical specifications, the development and strict implementation of greenhouse gas emissions data quality control program, the use of law by the metrological verification of qualified or calibrated measuring instruments to carry out greenhouse gas emissions related inspection and testing, truthful and accurate statistical accounting of greenhouse gas emissions of the units The company shall prepare a greenhouse gas emission report (hereinafter referred to as the annual emission report) for the previous year, and report the emission statistical accounting data and the annual emission report to the competent department of ecology and environment of the people's government at the provincial level where its production and operation sites are located in accordance with the regulations.
Key emission units shall be responsible for the authenticity, completeness and accuracy of their emission statistical accounting data and annual emission reports.
Key emission units shall, in accordance with relevant national regulations, make public the information on emissions, emission facilities, statistical accounting methods and other information contained in their annual emission reports. The original records and management accounts of the data involved in the annual emission reports shall be kept for at least five years.
Key emission units can entrust the technical service organizations established in accordance with the law to carry out greenhouse gas emissions related inspection and testing, preparation of annual emission reports.
Article 12 The competent ecological and environmental authorities of the people's governments at the provincial level shall verify the annual emission reports submitted by key emission units and confirm their actual greenhouse gas emissions. The verification shall be completed within the prescribed time limit, and the verification results shall be returned to the key emission unit within seven working days from the date of completion of the verification. The results of the verification shall be made public.
The ecological environment department of the provincial people's government may, by means of government-purchased services or other means, entrust technical service organizations established in accordance with the law to carry out technical audits of annual emission reports. Key emission units shall cooperate with the technical service organization to carry out the technical audit and truthfully provide relevant data and information.
Article XIII accepts the commission to carry out greenhouse gas emissions related inspection and testing of technical service organizations, shall comply with relevant national technical regulations and technical specifications, the inspection and testing reports issued by the corresponding responsibility, shall not issue inaccurate or false inspection and testing reports. Key emission units should be in accordance with the relevant provisions of the State production and delivery of samples, the representativeness of the sample, the authenticity of the responsibility.
Technical service organizations entrusted with the preparation of annual emission reports and technical audits of annual emission reports shall, in accordance with relevant state regulations, have the appropriate facilities, equipment, technical capabilities and technical personnel, establish a business quality management system, carry out the relevant business independently, objectively and impartially, and bear the corresponding responsibility for the annual emission reports and technical audits issued by them, and shall not tamper with or falsify the data and information, use false data and information or commit other false or fraudulent acts. It shall not tamper with or falsify data and information, use false data and information or commit other false acts. Specific administrative measures for the preparation of annual emission reports and technical audits shall be formulated by the competent ecological and environmental department of the State Council in conjunction with the relevant departments of the State Council.
Technical service organizations shall not engage in both annual emission report preparation business and technical audit business within the same province, autonomous region or municipality directly under the central government.
Article 14 Key emission units shall, in accordance with the results of the verification of the annual emission reports by the competent ecological and environmental authorities of the provincial people's governments, clear their carbon emission allowances in full in accordance with the time limit stipulated by the competent ecological and environmental authorities of the State Council.
Key emission units can buy or sell carbon emission allowances through the national carbon emission rights trading market, and their purchased carbon emission allowances can be used for clearing.
Key emission units may, in accordance with relevant national regulations, purchase certified greenhouse gas emission reductions for the purpose of clearing their carbon emission allowances.
Article 15 Carbon emission right trading may take the form of agreement transfer, one-way bidding or other spot trading methods in line with relevant state regulations.
It is prohibited for any unit or individual to manipulate the national carbon emissions trading market or disrupt the order of the national carbon emissions trading market through fraud, malicious collusion, or dissemination of false information.
Article 16 The competent ecological and environmental authorities under the State Council shall establish a management platform for the national carbon emissions trading market, strengthen the supervision and management of the whole process of carbon emissions quota allocation, clearing, and greenhouse gas emissions of key emission units, and realize information sharing with the relevant departments under the State Council.
Article 17 The competent ecological and environmental authorities and other departments with supervisory and management responsibilities may conduct on-site inspections of key emission units and other trading entities and technical service organizations within their respective areas of responsibility.
When conducting on-site inspections, the competent ecological environment department and other departments with supervisory and management responsibilities may take measures such as reviewing and copying relevant information, inquiring into and checking the relevant information system, and may require the relevant units and individuals to give explanations on relevant matters. The inspected person shall truthfully reflect the situation and provide information, and shall not refuse or obstruct.
On-site inspection, the inspector shall not be less than two people, and shall show law enforcement documents. Inspectors of the inspection of state secrets, commercial secrets, according to the law shall have the obligation of confidentiality.
Article 18 Any unit or individual violation of the provisions of these Regulations, the right to report to the ecological environment department and other departments with supervisory and management responsibilities. Receive reports of the department shall be dealt with in a timely manner in accordance with the law, in accordance with the relevant provisions of the State to the informant feedback results, and for the confidentiality of the informant.
Article 19 Any staff member of the competent ecological and environmental authorities or other departments with supervisory and management responsibilities who abuses his or her authority, neglects his or her duties or acts in favor of others in the supervision and management of carbon emissions trading and related activities shall be punished in accordance with the law.
Article 20 Where staff members of the competent ecological and environmental authorities, other departments with supervisory and management responsibilities, the national carbon emission right registration institution, the national carbon emission right trading institution and the technical service institutions stipulated in these Regulations are involved in the trading of carbon emission rights, the competent ecological and environmental authorities under the State Council shall order the disposal of carbon emission allowances and other traded products in their possession in accordance with the law, confiscate the unlawful proceeds, and may impose a fine of up to the equivalent value of the price of the traded carbon emission allowances and other products traded may also be fined up to the equivalent value of the price of the carbon emission allowances and other products traded; if they belong to the state staff, they shall also be punished in accordance with the law.
Article 21 Where any of the following circumstances applies to a key emission unit, the competent ecological and environmental authorities shall order it to make corrections and impose a fine of not less than 50,000 yuan and not more than 500,000 yuan; if it refuses to make corrections, it may be ordered to stop production and rectify the situation:
(i) Failure to develop and implement a quality control program for greenhouse gas emissions data as required;
(ii) Failure to submit emission statistical accounting data and annual emission reports in accordance with the regulations;
(c) Failure to disclose to the public, in accordance with the regulations, information on emissions, emission facilities, statistical accounting methods, etc., in the annual emission report;
(iv) Failure to keep original records and management accounts of data covered by annual emission reports in accordance with regulations.
Article 22 If a key emission unit has any of the following circumstances, the competent ecological environment department shall order it to make corrections, confiscate the illegal income, and impose a fine of not less than 5 times but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 500,000 yuan, it shall impose a fine of not less than 500,000 yuan but not more than 2 million yuan; and impose a fine of not less than 50,000 yuan but not more than 200,000 yuan on the supervisory personnel directly in charge of the unit and other persons directly responsible; if it refuses to make corrections, it may be ordered to suspend production and remediation. If the company refuses to rectify the situation, it shall reduce its carbon emission quotas for the next year in the proportion of 50% to 100% or less, and it may be ordered to suspend production for remediation:
(i) Failure to account for greenhouse gas emissions in accordance with the required statistics;
(ii) Significant defects or omissions in the preparation of the annual emission report, tampering with or falsifying data and information in the preparation of the annual emission report, using false data and information, or committing other fraudulent acts;
(iii) Failure to prepare and send samples for testing in accordance with regulations.
Article 23 Where a technical service organization issues an inaccurate or false inspection and testing report, the competent ecological environment department shall order rectification, confiscate the illegal income and impose a fine of not less than 5 times the illegal income and not more than 10 times the illegal income; where there is no illegal income or where the illegal income is less than 20,000 yuan, the fine shall be not less than 20,000 yuan and not more than 100,000 yuan; where the circumstances are serious, the department responsible for qualification shall cancel the qualification of its inspection and testing.
If the annual emission report or technical audit opinion issued by the technical service organization has significant defects or omissions, or if it tampers with or falsifies data and information in the process of compiling the annual emission report or conducting technical audit of the annual emission report, or if it uses false data and information, or if it commits other acts of fraud, the competent department in charge of ecology and environment shall order correction, confiscate the illegal income, and impose a fine of not less than 5 times but not more than 10 times of the illegal income. If there is no illegal income or the illegal income is less than 200,000 yuan, a fine of not less than 200,000 yuan and not more than 1,000,000 yuan shall be imposed; if the circumstances are serious, the company shall be prohibited from engaging in the business of compiling annual emission reports and technical audits.
If a technical service organization is penalized for the violations stipulated in paragraphs 1 and 2 of this Article, it shall impose a fine of not less than RMB 20,000 yuan and not more than RMB 200,000 yuan on its directly responsible supervisory personnel and other directly responsible personnel, and shall be prohibited from engaging in the business of greenhouse gas emission-related inspection and testing, preparation of annual emission reports, and technical auditing for a period of five years; and if the circumstances are serious, it shall be prohibited from the aforesaid business for life.
Article 24 If a key emission unit fails to clear its carbon emission allowances in accordance with the regulations, the competent ecological and environmental authorities shall order rectification and impose a fine of more than 5 times and less than 10 times the average transaction price of the market transaction in the month preceding the time limit for the clearing of the carbon emission allowances not yet cleared; if the unit refuses to rectify the situation, it shall reduce its carbon emission allowances for the next year in accordance with the equivalent amount of the carbon emission allowances not yet cleared, and it may be ordered to suspend production for remediation.
Article 25 Anyone who manipulates the national carbon emissions trading market shall be ordered by the competent ecological and environmental department under the State Council to make corrections, confiscate the illegal income and impose a fine of not less than one but not more than ten times the illegal income; if there is no illegal income or the illegal income is less than 500,000 yuan, a fine of not less than 500,000 yuan but not more than 5 million yuan shall be imposed. If a unit is penalized for the foregoing violations, its directly responsible supervisors and other directly responsible persons shall be warned and fined not less than 100,000 yuan and not more than 1 million yuan.
Anyone who disrupts the order of the national carbon emissions trading market shall be ordered by the competent ecological and environmental department under the State Council to make corrections, confiscate the illegal income and impose a fine of not less than one but not more than ten times the illegal income; if there is no illegal income or the illegal income is less than 100,000 yuan, the fine shall be 100,000 yuan but not more than 1,000,000 yuan. If a unit is penalized for the foregoing violations, its directly responsible supervisors and other directly responsible persons shall be warned and fined from 50,000 yuan to 500,000 yuan.
Article 26 Anyone who refuses or obstructs the competent ecological environment department or other departments with supervisory and management responsibilities to carry out supervision and inspection in accordance with the law shall be ordered by the competent ecological environment department or other departments with supervisory and management responsibilities to make corrections, and shall be sentenced to a fine of 20,000 yuan or more than 200,000 yuan.
Article 27 The department in charge of ecological environment under the State Council, in conjunction with the relevant departments under the State Council, shall establish a credit record system for key emission units and other trading entities and technical service organizations, and shall incorporate into the relevant national credit information system information on administrative penalties imposed on key emission units and other trading entities and technical service organizations for violating the provisions of these Regulations, and shall publicize it to the public in accordance with the law.
Article 28 Violation of the provisions of these regulations, causing damage to others, shall bear civil liability according to law; constitutes a violation of public security management, shall be given public security management penalties according to law; constitutes a crime, shall be investigated for criminal responsibility.
Article 29 The local carbon emissions trading market established before the implementation of these Regulations shall improve and perfect the relevant management system and strengthen supervision and management with reference to the provisions of these Regulations.
After the implementation of these Regulations, no new local carbon emissions trading market shall be established, and key emission units shall no longer participate in carbon emissions trading in the local carbon emissions trading market of the same greenhouse gas type and the same industry.
Article 30 Meaning of the following terms in these Regulations:
(i) Greenhouse gases, which are natural and anthropogenic gaseous components of the atmosphere that absorb and re-emit infrared radiation, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and nitrogen trifluoride.
(ii) Carbon emission allowances are the emission credits of greenhouse gases, such as carbon dioxide, allocated to key emission units for a specified period of time; one unit of carbon emission allowance is equivalent to the emission of one ton of carbon dioxide equivalent into the atmosphere.
(c) Clearance refers to the act of key emission units paying carbon emission allowances equal to their actual greenhouse gas emissions verified and confirmed for the previous year to the competent ecological and environmental authorities within a specified time limit.
Article 31 Key emission units consuming non-fossil energy power, in accordance with relevant state regulations on its carbon emission quotas and greenhouse gas emissions shall be adjusted accordingly.
Article 32 The competent department for ecology and environment under the State Council in conjunction with the competent department for civil aviation under the State Council may, in accordance with the principles set forth in these Regulations, and in the light of actual needs, and in conjunction with the characteristics of the control of greenhouse gas emissions in civil aviation and other industries, formulate the list of key emission units in civil aviation and other industries, the issuance and clearing of carbon emission allowances, the statistical accounting of greenhouse gas emission data, and the submission and verification of the annual emission report, and so on. Specific management measures.
Article 33 This Ordinance shall come into force on May 1, 2024.
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