Measures for the Administration of Carbon Emissions Trading (for Trial Implementation)

Measures for the Administration of Carbon Emissions Trading (for Trial Implementation)

Order of the Ministry of Ecology and Environment of the People's Republic of China
(No. 19)

The Measures for the Administration of Carbon Emissions Trading (for Trial Implementation), as deliberated and adopted at the executive meeting of the Ministry of Ecology and Environment on December 25, 2020, is hereby issued and shall come into force on February 1, 2021.

Huang Runqiu, Minister of Ecology and Environment

December 31, 2020

Measures for the Administration of Carbon Emissions Trading (for Trial Implementation)

Chapter I General Provisions

Article 1 These Measures are developed in accordance with the requirements of the state for greenhouse gas (“GHG”) emissions control for the purposes of implementing the decisions and arrangements of the CPC Central Committee and the State Council for building a national carbon emissions trading market, maximizing the role of market mechanisms in addressing climate change and promoting green and low-carbon development, encouraging more GHG emissions reductions, and regulating carbon emissions trading and related activities across the country.

Article 2 These Measures shall apply to carbon emissions trading and related activities across the country—including, among others, the allocation and surrender of emissions allowances, the registration, trading, and settlement of carbon emissions, and the GHG emissions reporting and verification—and the supervision and management of the aforementioned activities.

Article 3 Carbon emissions trading and related activities across the country shall be conducted under the principles of market orientation, gradual and orderly progress, fairness and openness, and good faith.

Article 4 The Ministry of Ecology and Environment shall establish a national carbon emissions trading market in accordance with the relevant provisions of the state.

The GHG types and industry scope covered by the national carbon emissions trading market shall be formulated by the Ministry of Ecology and Environment and implemented after being approved in accordance with procedures. And it shall also be disclosed to the public.

Article 5 The Ministry of Ecology and Environment will, in accordance with the relevant provisions of the state, organize the establishment of a national carbon emissions registration agency and a national carbon emissions trading agency, and the building of a national carbon emissions registration system and a national carbon emissions trading system.

The national carbon emissions registration agency, through the national carbon emissions registration system, records the holding, change, surrender, and cancellation of emissions allowances, and provides settlement services. The information recorded in the national carbon emissions registration system is the final basis for determining the ownership of emissions allowances.

The national carbon emissions trading agency is responsible for organizing centralized and unified trading of carbon emissions nationwide.

The national carbon emissions registration agency and the national carbon emissions trading agency shall regularly report to the Ministry of Ecology and Environment on such activities as the registration, trading, and settlement of carbon emissions nationwide and their operation and other major matters that should be reported, and ensure that both the national carbon emissions registration system and the national carbon emissions trading system are operated in a safe, stable, and reliable manner.

Article 6 The Ministry of Ecology and Environment shall be responsible for the development of technical specifications for carbon emissions trading and related activities across the country so as to strengthen supervision and management of the allocation of local carbon emissions allowances and the reporting and verification of GHG emissions, and supervise, administer and guide carbon emissions trading and related activities throughout the country in conjunction with other relevant departments under the State Council.

The provincial ecology and environment departments shall be responsible for organizing within their respective administrative areas such activities as the allocation and surrender of emissions allowances and the reporting and verification of GHG emissions, and supervise and administer them.

The ecology and environment department at the districted city level shall be responsible for cooperating with the provincial ecology and environment department in implementing the relevant specific work, and carry out supervision and administration in accordance with the relevant provisions of these Measures.

Article 7 The national carbon emissions registration agency and the national carbon emissions trading agency and their staff shall abide by the technical specifications for carbon emissions trading and related activities across the country, and the provisions of other competent departments of the state on transaction supervision.

Chapter II Key GHG Emitters

Article 8 Any GHG emitter that meets the following conditions shall be included in the list of key GHG emitters (hereinafter referred to as key emitters):

1. It belongs to the industries covered by the national carbon emissions trading market;

2. The amount of annual GHG emissions reaches 26,000 tons of carbon dioxide equivalent.

Article 9 The provincial ecology and environment department shall, in accordance with the relevant provisions of the Ministry of Ecology and Environment, determine a list of key emitters within their respective administrative areas, and report it to the Ministry of Ecology and Environment before disclosing it to the public.

Article 10 Key emitters shall control GHG emissions, report carbon emissions data, surrender carbon emissions allowances, make public information on trading and related activities, and accept the supervision and administration of the ecology and environment department.

Article 11 Under any of the following circumstances, the provincial ecology and environment department responsible for determining the list shall remove the relevant GHG emitter from the list of key emitters:

1. The amount of annual GHG emissions fails to reach 26,000 tons of carbon dioxide equivalent for two consecutive years; or

2. The GHGs are no longer emitted because production or business activities are discontinued due to suspension, closure, or for other reasons.

Article 12 Where a GHG emitter applies for inclusion in the list of key emitters, the provincial ecology and environment department responsible for determining the list shall review the application. Those that have been verified to meet the conditions prescribed in Article 8 of these Measures shall be included in the list of key emitters.

Article 13 Key ......