Interim Measures for the Administration of Carbon Emission Permit Trading

Interim Measures for the Administration of Carbon Emission Permit Trading Order of the National Development and Reform Commission of the People's Republic of China (No. 17) For purposes of implementing the decision of the Third Plenary Session of the 18th CPC Central Committee, as well as the requirements of the Outline of the “12th Five-Year Plan,” and the Work Plan of the State Council for Greenhouse Gas Emission Control during the 12th Five-Year Plan Period, and promoting the establishment of a national carbon emission permit trading market, the National Development and Reform Commission (“NDRC”) has organized the drafting of the Interim Measures for the Administration of Carbon Emission Permit Trading, which are hereby issued and shall come into force thirty days after the date of issuance. Director: Xu Shaoshi December 10, 2014 Interim Measures for the Administration of Carbon Emission Permit Trading Chapter I General Provisions Article 1 For purposes of promoting ecological civilization construction, accelerating the transformation of economic development mode, promoting innovation on system and mechanism, fully maximizing the decisive role of the market in the allocation of greenhouse gas emission resources, strengthening the control and management of greenhouse gas emissions, and regulating the construction and operation of the carbon emission permit trading market, these Measures are hereby developed. Article 2 These Measures shall apply to the supervision and management of carbon emission permit trading within the territory of the People's Republic of China. Article 3 For the purpose of these Measures, carbon emission permit trading means the trading activities carried out between trading entities in accordance with these Measures in terms of emission quotas and Chinese certified emission reduction (CCER). Article 4 In carbon emission permit trading, the combination of government guidance and market operation shall be stuck to and the principles of openness, fairness, impartiality and good faith shall be upheld. Article 5 As the carbon trading department under the State Council in charge of carbon emission permit trading (hereinafter referred to as the “carbon trading department under the State Council”), the NDRC shall, in accordance with these Measures, be responsible for the creation of a carbon emission permit trading market, and manage, supervise, and direct the operation of the market. As the provincial carbon trading departments in charge of carbon emission permit trading (hereinafter referred to as the “provincial carbon trading departments”), the development and reform commissions of all provinces, autonomous regions, and municipalities directly under the Central Government shall, in accordance with these Measures, manage, supervise, and direct relevant activities of carbon emission permit trading within their respective administrative regions. Other relevant departments shall, in accordance with their respective responsibilities, effectively manage carbon emission permit trading activities through collaboration. Article 6 The carbon trading department under the State Council shall timely issue the types of greenhouse gas and the scope of industries eligible for carbon emission permit trading, as well as the standards for the determination of major emission entities. Chapter II Quota Management Article 7 The provincial carbon trading departments shall, according to the standards for the determination of major emission entities issued by the carbon trading department under the State Council, put forward a list of all major emission entities satisfying the standards within their respective administrative regions and report it to the carbon trading department under the State Council, which shall issue the list to the public after confirmation. With the approval of the carbon trading department under the State Council, the provincial carbon trading departments may timely expand the industry coverage of carbon emission permit trading and increase the number of major emission entities eligible for carbon emission permit trading. Article 8 The carbon trading department under the State Council shall, according to the requirements of national greenhouse gas emission control objectives, give comprehensive consideration to greenhouse gas emissions, economic growth, industrial structures, and energy structures, the major emission entities eligible for trading, and other factors of the state, as well as the provinces, autonomous regions, and municipalities directly under the Central Government, determine the total emission quotas of the state as well as the provinces, autonomous regions, and municipalities directly under the Central Government. Article 9 Emission quotas shall be mainly assigned for free during the initial period. Paid use of emission quotas shall be introduced in due time and the proportion of paid use shall be gradually increased. Article 10 The carbon trading department under the State Council shall formulate a national quota assignment plan so as to specify the quantity of emission quotas to be assigned for free to all provinces, autonomous regions, and municipalities directly under the Central Government, and the quantity of emission quotas reserved by the state, among others. Article 11 The carbon trading department under the State Council shall reserve a certain amount of quotas from the total emission quotas for paid use, market regulation, and major construction projects, etc. Earnings obtained from paid use shall be spent on promoting carbon reduction of the state and relevant capacity building. Article 12 The carbon trading department under the State Council shall, in light of the specific circumstances of the different industries and with reference to the opinions of the relevant industry authorities, determine uniform methods and standards for free use of quotas. All provinces, autonomous regions, and municipalities directly under the Central Government may, in light of their local realities, formulate and implement the methods and standards that are more strict than nationally uniform methods and standards for the free use of quotas. Article 13 The provincial carbon trading departments shall, according to the methods and standards for the free use of quotas as determined in Article 12, put forward the quantity of quotas to be assigned to the major emission entities within their respective administrative regions for free use, and assign the emission quotas to the major emission entities within their administrative regions for free use after they are approved by the carbon trading department under the State Council. Article 14 The remaining quotas of the total emission quotas of all provinces, autonomous regions, and municipalities directly under the Central Government after ded......