Interim Regulation on the Administration of Carbon Emission Trading

Interim Regulation on the Administration of Carbon Emission Trading

Order of the State Council of the People's Republic of China

(No. 775)

The Interim Regulation on the Administration of Carbon Emission Trading, as adopted at the 23rd executive meeting of the State Council on January 5, 2024, is hereby issued and shall come into force on May 1, 2024.

Premier: Li Qiang

January 25, 2024

Interim Regulation on the Administration of Carbon Emission Trading

Article 1 This Regulation is developed for the purposes of regulating the carbon emissions trading and related activities, strengthening the control over greenhouse gas emissions, actively and steadily promoting achieving carbon dioxide peaking and carbon neutrality, promoting green and low-carbon economic and social development, and promoting the construction of ecological civilization.

Article 2 This Regulation shall apply to carbon emissions trading and related activities in the national carbon emissions trading market.

Article 3 In the administration of carbon emissions trading and related activities, the leadership of the Communist Party of China shall be insisted on, the line, principles, policies and decision-making arrangements of the Party and the state shall be implemented, the adaptation of greenhouse gas emission control to economic and social development shall be insisted on, the combination of government guidance and market regulation shall be insisted on, and the principles of openness, fairness and justice shall be followed.

The state shall strengthen international cooperation and exchanges in the field of carbon emissions trading.

Article 4 The competent department of ecology and environment of the State Council shall be responsible for the supervision and administration of carbon emissions trading and related activities. The relevant departments of the State Council shall, in accordance with the division of responsibilities, be responsible for the supervision and administration of carbon emissions trading and related activities.

The competent departments of ecology and environment of the local people's governments shall be responsible for the supervision and administration of carbon emissions trading and related activities within their respective administrative regions. The relevant departments of the local people's governments shall, in accordance with the division of responsibilities, be responsible for the supervision and administration of carbon emissions trading and related activities within their respective administrative regions.

Article 5 The national carbon emissions registration institution shall, in accordance with the relevant provisions of the state, be responsible for the registration of carbon emissions trading products and provide services such as transaction settlement. The national carbon emissions trading institution shall, in accordance with relevant rules of the state, be responsible for organizing centralized and unified carbon emissions trading. Fees for registration and transactions shall be reasonable, and the fee items, standards and administrative measures shall be published.

The national carbon emissions registration institution and the national carbon emissions trading institution shall, in accordance with the relevant rules of the state, improve the relevant business rules and establish a system for risk prevention and control and information disclosure.

The competent department of ecology and environment of the State Council shall, in conjunction with the market regulation department of the State Council, the People's Bank of China and the banking regulatory institution of the State Council, conduct supervision and administration of the national carbon emissions registration authorities and the national carbon emissions trading institution, and strengthen information sharing and cooperation in law enforcement.

Carbon emissions trading shall be gradually integrated into a unified public resource trading platform system.

Article 6 The types and industry scope of greenhouse gases covered by carbon emissions trading shall be studied and put forward by the competent department of ecology and environment of the State Council in conjunction with the relevant department of development and reform of the State Council and other relevant departments according to the national greenhouse gas emission control objectives, and be implemented after being submitted to the State Council for approval.

Carbon emission trading products include carbon emission quotas and other spot trading products approved by the State Council.

Article 7 Key greenhouse gas emission entities (hereinafter referred to as “key emission entities”) included in the national carbon emissions trading market and other entities that comply with the relevant rules of the state may participate in carbon emissions trading.

The staff members of the competent departments of ecology and environment, other departments responsible for supervision and administration of carbon emissions trading and related activities (hereinafter referred to as “other departments responsible for supervision and administration”), the national carbon emissions registration institution, the national carbon emissions trading institution and the technical service institutions provided for in this Regulation shall not participate in carbon emissions trading.

Article 8 The competent department of ecology and environment of the State Council shall, in conjunction with the relevant departments of the State Council, develop the conditions for the determination of key emission entities according to the national greenhouse gas emission control objectives. The competent departments of ecology and environment of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter referred to as the “provincial people's governments”) shall, in conjunction with the relevant departments at the same level, develop the annual list of key emission entities in their respective administrative regions in accordance with the conditions for determination of key emission entities.

The conditions for determining key emission entities and the annual list of key emission entities shall be published to the public.

Article 9 The competent department of ecology and environment of the State Council shall, in conjunction with relevant departments of the State Council, develop the total annual carbon emission quotas and distribution plans and organize the implementation according to the national greenhouse gas emission control objectives, in comprehensive consideration of factors such as economic and social development, adjustment to the industrial structure, industrial development stage, historical emissions and market regulation needs. Carbon emission allowances shall be distributed free of charge, and a combination of free and compensated allocation shall be gradually implemented in accordance with the relevant requirements of the state.

The competent department of ecology and environment of the people's government at the provincial level shall, in conjunction with the relevant departments at the same level, grant carbon emission quotas to key emission entities within its administrative region according to the total annual carbon emission quotas and the allocation plan, and shall not grant or adjust carbon emission quotas in violation of the total annual carbon emission quotas and the allocation plan.

Article 10 In accordance with the provisions of Articles 6, 8 and 9 of this Regulation, opinions from provincial people's governments, relevant industry associations, enterprises and public institutions, experts and the public shall be solicited for studying and putting forward the types and industry scope of greenhouse gases covered by carbon emissions trading, and developing the conditions for determining key emission entities and the total annual carbon emission quotas and distribution plans.

Article 11 Key emission entities shall take effective measures to control greenhouse gas emissions, develop and strictly implement greenhouse gas emission data quality control plans in accordance with the relevant rules of the state and the technical specifications developed by the competent department of ecology and environment of the State Council, and......