On February 4, the State Council of the People's Republic of China issued Decree No.775. The Interim Regulations on the Management of Carbon Emission Trading have been adopted by the 23rd Standing Meeting of the State Council on January 5, 2024, and are hereby promulgated for implementation as of May 1, 2024.
Article 2 These Regulations shall apply to the carbon emissions trading and related activities in the national carbon emissions 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's and the state's line, policy and decision-making arrangements, adhere to the adaptation of greenhouse gas emission control to economic and social development, adhere to the combination of government guidance and market regulation, and follow the principles of openness, fairness and impartiality.
The state strengthens international cooperation and exchanges in the field of carbon emissions trading. Article
4 The competent department of ecological environment under the State Council shall be responsible for the supervision and management of carbon emission trading and related activities. The relevant departments of the State Council shall be responsible for the supervision and management of carbon emissions trading and related activities in accordance with their respective responsibilities. The competent department of ecological environment of
the local people's government shall be responsible for the supervision and management of carbon emission trading and related activities within its administrative region. The relevant departments of the local people's governments shall, in accordance with their respective responsibilities, be responsible for the supervision and management of carbon emissions trading and related activities within their respective administrative areas. Article
5 The national carbon emission registration authority shall, in accordance with the relevant provisions of the State, be responsible for the registration of carbon emission trading products and provide services such as transaction settlement. The national carbon emission trading institutions shall be responsible for organizing and carrying out centralized and unified trading of carbon emission rights in accordance with the relevant provisions of the State. Fees for registration and transactions shall be reasonable, and the charging items, charging standards and management measures shall be made public to the public.
National carbon emission registration agencies and national carbon emission trading agencies shall improve relevant business rules and establish risk prevention and control and information disclosure systems in accordance with the relevant provisions of the State. The competent department of ecological environment
under the State Council, together with the market supervision and administration department under the State Council, the People's Bank of China and the banking supervision and administration institution under the State Council, shall supervise and administer the national carbon emission registration and trading institutions, and strengthen information sharing and law enforcement cooperation.
Carbon emissions trading should be gradually integrated into a unified public resources trading platform system. Article
6 The types of greenhouse gases and the scope of industries covered by carbon emission trading shall be proposed by the competent department of ecological environment under the State Council in conjunction with the relevant departments of development and reform under the State Council in accordance with the national greenhouse gas emission control objectives, and shall 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 units incorporated into the national carbon emission trading market (hereinafter referred to as key emission units) and other subjects conforming to the relevant provisions of the State may participate in carbon emission trading. The staff of the competent department of
ecological environment, other departments responsible for supervision and management of carbon emission trading and related activities (hereinafter referred to as other departments responsible for supervision and management), the national carbon emission registration agency, the national carbon emission trading agency and the technical service agencies specified in these Regulations shall not participate in carbon emission trading. Article
8 The competent department of ecological environment under the State Council shall, in conjunction with the relevant departments under the State Council, formulate the conditions for determining key emission units in accordance with the national greenhouse gas emission control targets. The competent departments of ecological environment of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter referred to as provincial people's governments) shall, in conjunction with the relevant departments at the same level, formulate an annual list of key emission units in their respective administrative regions in accordance with the conditions for determining key emission units. The conditions for determining
key emission units and the annual list of key emission units shall be published to the public. Article
9 The competent department of ecological environment under the State Council shall, in conjunction with the relevant departments under the State Council, formulate an annual total carbon emission quota and allocation plan in accordance with the national greenhouse gas emission control target, taking into account such factors as economic and social development, industrial restructuring, industrial development stage, historical emission situation and market regulation needs, and organize its implementation. Carbon emission quotas shall be allocated free of charge, and a combination of free and paid allocation methods shall be gradually implemented in accordance with the relevant requirements of the State. The competent department of ecological environment of
the provincial people's government, in conjunction with the relevant departments at the same level, shall issue carbon emission quotas to key emission units within its administrative region in accordance with the total annual carbon emission quotas and the allocation plan, and shall not issue 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 these Regulations, the types and industries of greenhouse gases covered by carbon emission trading, the conditions for determining key emission units and the total amount and allocation of annual carbon emission quotas shall be studied and put forward. The opinions of provincial people's governments, relevant trade associations, enterprises and institutions, experts and the public shall be sought. Article
11 Key emission units shall take effective measures to control greenhouse gas emissions, formulate and strictly implement the 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 ecological environment under the State Council, and implement the quality control plan for greenhouse gas emission data. Use measuring instruments that have passed metrological verification or calibrated according to law to carry out relevant inspection and testing of greenhouse gas emissions, make truthful and accurate statistical accounting of greenhouse gas emissions of the unit, prepare the greenhouse gas emission report of the previous year (hereinafter referred to as the annual emission report), and report the greenhouse gas emissions of the unit. The annual emission report shall be submitted to the competent department of ecological environment of the provincial people's government where the production and operation site is located.
Key emission units shall be responsible for the authenticity, completeness and accuracy of their statistical accounting data and annual emission reports.
Key emission units shall, in accordance with the relevant provisions of the State, disclose to the public such information as emissions, emission facilities and statistical accounting methods in their annual emission reports. The original records and management accounts of the data involved in the annual emission report shall be kept for at least five years.
Key emission units may entrust technical service institutions established according to law to carry out inspection and testing related to greenhouse gas emissions and prepare annual emission reports. Article
12 The competent department of ecological environment of the provincial people's government shall verify the annual emission reports submitted by key emission units and confirm their actual greenhouse gas emissions. The verification work shall be completed within the prescribed time limit, and the verification results shall be fed back to the key emission units within seven working days from the date of completion of the verification. The results of the verification shall be made public to the public. The competent department of ecological environment of
the provincial people's government may entrust a technical service institution established according to law to conduct a technical audit of the annual emission report by means of government purchasing services. Key emission units shall cooperate with technical service agencies to carry out technical audits and provide relevant data and information truthfully. Article
13 Technical service institutions entrusted with the inspection and testing of greenhouse gas emissions shall abide by the relevant technical regulations and specifications of the State, assume corresponding responsibilities for the inspection and testing reports issued by them, and shall not issue false or false inspection and testing reports. Key discharge units shall make and submit samples for inspection in accordance with the relevant provisions of the State, and shall be responsible for the representativeness and authenticity of the samples. Technical service institutions
entrusted with the preparation of annual emission reports and the technical examination of annual emission reports shall, in accordance with the relevant provisions of the State, possess corresponding facilities, equipment, technical capabilities and technical personnel, establish a business quality management system, carry out relevant business independently, objectively and impartially, and carry out relevant business in accordance with the relevant provisions of the State. They shall bear corresponding responsibilities for their annual emission reports and technical audit opinions, and shall not tamper with or falsify data, use false data or commit other fraudulent acts. Specific management measures for the preparation of annual emission reports and technical audits shall be formulated by the competent department of ecological environment under the State Council in conjunction with the relevant departments under the State Council. Within the same province, autonomous region or municipality directly under the Central Government, a
technical service institution shall not engage in the business of preparing annual emission reports and technical examination at the same time. Article
14 Key emission units shall pay their carbon emission quotas in full according to the verification results of the annual emission report by the competent department of ecological environment of the provincial people's government and the time limit prescribed by the competent department of ecological environment under the State Council.
Key emission units can purchase or sell carbon emission quotas through the national carbon emission trading market, and the carbon emission quotas they purchase can be used for clearance.
Key emission units may, in accordance with the relevant provisions of the State, purchase certified greenhouse gas emission reductions for the clearance of their carbon emission quotas. Article
15 Carbon emission trading may adopt agreement transfer, one-way bidding or other spot trading methods that conform to the relevant provisions of the State.
It is forbidden for any unit or individual to manipulate the national carbon emission trading market or disrupt the order of the national carbon emission trading market by means of fraud, malicious collusion and dissemination of false information. Article
16 The competent department of ecological environment under the State Council shall establish a management platform for the national carbon emission trading market, strengthen the supervision and management of the whole process of carbon emission quota allocation, clearance and greenhouse gas emissions of key emission units, and share information with relevant departments under the State Council.Article
17 The competent department of ecological environment and other departments responsible for supervision and management may conduct on-site inspections of key emission units and other trading entities and technical service institutions within their respective responsibilities. When conducting on-site inspections, the competent departments of
ecological environment and other departments responsible for supervision and management may take measures such as consulting and copying relevant information, inquiring and inspecting relevant information systems, and may require relevant units and individuals to make explanations on relevant matters. The inspected person shall truthfully reflect the situation and provide information, and shall not refuse or obstruct it.
For on-site inspection, the number of inspectors shall not be less than two, and they shall show their law enforcement certificates. Inspectors shall have the obligation to keep confidential the state secrets and business secrets they have learned in the course of inspection. Article
18 Any unit or individual shall have the right to report violations of the provisions of these Regulations to the competent department of ecological environment and other departments responsible for supervision and management. The department receiving the report shall handle it in a timely manner according to law, feedback the results to the informer in accordance with the relevant provisions of the State, and keep the informer confidential. Article
19 Any staff member of the competent department of ecological environment or other departments responsible for supervision and management who abuses his power, neglects his duty or engages in malpractices for personal gain in the supervision and management of carbon emission trading and related activities shall be punished according to law. Article
20 Where the competent department of ecological environment, other departments responsible for supervision and management, the national carbon emission registration agency, the national carbon emission trading agency and the staff of the technical service agencies stipulated in these Regulations participate in the carbon emission trading, the competent department of ecological environment, the competent department of supervision and management, the national carbon emission trading agency and the technical service agencies shall participate in the carbon emission trading. The competent department of ecological environment under the State Council shall order to dispose of the carbon emission quotas and other trading products held according to law, confiscate the illegal income, and impose a fine of less than the price of the carbon emission quotas and other products traded; if they are state functionaries, they shall also be punished according to law. Article
21 In case of any of the following circumstances, a major emission unit shall be ordered by the competent department of ecological environment to make corrections and be fined not less than 50,000 yuan but not more than 500,000 yuan; if it refuses to make corrections, it may be ordered to stop production for rectification:
(1) Failing to formulate and implement a quality control plan for greenhouse gas emission data in accordance with the provisions;
(2) Failing to submit the statistical accounting data of emissions and the annual emission report in accordance with the provisions;
(3) Failing to disclose the information on emissions, emission facilities and statistical accounting methods in the annual emission report to the public in accordance with the provisions;
(4) Failure to keep the original records and management accounts of the data involved in the annual emission report in accordance with the regulations. Article
22 In case of any of the following circumstances, the major discharge unit shall be ordered by the competent department of ecological environment 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, a fine of not less than 500,000 yuan but not more than 2 million yuan shall be imposed; A fine of not less than 50,000 yuan but not more than 200,000 yuan shall be imposed on the directly responsible person in charge and other directly responsible persons; in case of refusal to make corrections, the carbon emission quota for the next year shall be reduced at a rate of not less than 50% but not more than 100%, and the production may be ordered to be suspended for rectification:
(1) failing to conduct statistical accounting of greenhouse gas emissions in accordance with the provisions;
(2) There are major defects or omissions in the annual emission report prepared, and data are tampered with or falsified during the preparation of the annual emission report, false data are used, or other fraudulent acts are carried out;
(3) The samples are not prepared and submitted for inspection in accordance with the provisions. Article
23 Where a technical service agency issues an untruthful or false inspection and testing report, the competent department of ecological 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; If the circumstances are serious, the department responsible for qualification confirmation shall cancel its inspection and testing qualification. If there are major defects or omissions in the annual emission report or technical audit opinions issued by a
technical service institution, the competent department of ecological environment shall falsify or falsify data, use false data or commit other fraudulent acts in the process of compiling the annual emission report or conducting technical audit of the annual emission report. The illegal gains shall be confiscated and a fine of not less than 5 times but not more than 10 times the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 200,000 yuan, a fine of not less than 200,000 yuan but not more than 1 million yuan shall be imposed; if the circumstances are serious, it shall be prohibited from engaging in the business of preparing annual emission reports and technical audits. If a
technical service institution is punished for the illegal acts specified in the first and second paragraphs of this article, the person in charge directly responsible and other persons directly responsible shall be fined not less than 20000 yuan but not more than 200000 yuan, and it shall be prohibited from engaging in the inspection and testing of greenhouse gas emissions, the preparation of annual emission reports and technical audits within five years; If the circumstances are serious, they shall be prohibited from engaging in the aforementioned business for life. Article
24 If a key emission unit fails to pay its carbon emission quota in accordance with the regulations, the competent department of ecological environment shall order it to make corrections and impose a fine of not less than 5 times but not more than 10 times the average transaction price of the market transaction one month before the time limit for the payment of the carbon emission quota; Those who refuse to make corrections may be ordered to stop production for rectification if their carbon emission quotas for the next year are reduced by the same amount as the unpaid carbon emission quotas. Article
25 Whoever manipulates the national carbon emission trading market shall be ordered by the competent department of ecological environment under the State Council to make corrections, confiscate the illegal income, and impose a fine of not less than one time 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, a fine of not less than 500,000 yuan but not more than 5 million yuan shall be imposed. If a unit is punished for the aforementioned illegal acts, the person in charge directly responsible and other persons directly responsible shall be warned and fined not less than 100000 yuan but not more than 1 million yuan. Where the order of the national carbon emission trading market is
disturbed, the competent department of ecological environment under the State Council shall order it to make corrections, confiscate the illegal income, and impose a fine of not less than one time but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 100,000 yuan, a fine of not less than 100,000 yuan but not more than 1 million yuan shall be imposed. If a unit is punished for the aforementioned illegal acts, the person in charge directly responsible and other persons directly responsible shall be warned and fined not less than 50000 yuan but not more than 500000 yuan. Article
26 Whoever refuses or obstructs the competent department of ecological environment or other departments responsible for supervision and management from carrying out supervision and inspection according to law shall be ordered to make corrections by the competent department of ecological environment or other departments responsible for supervision and management, and shall be fined not less than 20000 yuan but not more than 200000 yuan. Article
27 The competent department of ecological environment under the State Council shall, in conjunction with the relevant departments under the State Council, establish a credit record system for key emission units and other trading entities and technical service institutions, and incorporate information on key emission units and other trading entities and technical service institutions subject to administrative penalties for violating the provisions of these Regulations into the relevant credit information systems of the State. And publish it to the public according to law. Article
28 Those who violate the provisions of these Regulations and cause damage to others shall bear civil liability according to law; those who constitute acts violating the administration of public security shall be given administrative penalties for public security according to law; and those who constitute crimes shall be investigated for criminal responsibility according to law. Article
29 The local carbon emission trading market established before the implementation of these Regulations shall improve 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 emission trading market will be established, and key emission units will no longer participate in carbon emission trading in local carbon emission trading markets of the same greenhouse gas type and industry.
Greenhouse gases refer to the natural and man-made gaseous components of the atmosphere that absorb and re-emit infrared radiation, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and nitrogen trifluoride.
(2) Carbon emission quotas refer to the emission quotas of greenhouse gases such as carbon dioxide allocated to key emission units within a specified period of time. One unit of carbon emission quota is equivalent to one ton of carbon dioxide equivalent discharged into the atmosphere.
(3) Clearance refers to the act of key emission units paying carbon emission quotas equivalent to the actual greenhouse gas emissions of the previous year confirmed by verification to the competent authorities of ecological environment within the prescribed time limit. Article
31 Where a key emission unit consumes non-fossil energy power, its carbon emission quota and greenhouse gas emissions shall be adjusted accordingly in accordance with the relevant provisions of the State. Article
32 The competent department of ecological environment under the State Council, in conjunction with the competent departments of civil aviation under the State Council, may, in accordance with the principles stipulated in these Regulations, take into account the characteristics of greenhouse gas emission control in civil aviation and other industries in accordance with actual needs. Specific management measures shall be formulated for the formulation of the list of key emission units in civil aviation and other industries, the issuance and clearance of carbon emission quotas, the statistical accounting of greenhouse gas emission data, and the submission and verification of annual emission reports. Article
33 These Regulations shall come into force as of May 1, 2024.
