On March 20, the Ministry of Ecology and Environment issued the Work Program of the National Carbon Emission Trading Market Covering Steel, Cement and Aluminum Smelting Industries (hereinafter referred to as the Program). According to
the Plan, in order to implement the plan of the CPC Central Committee and the State Council for the construction of the national carbon emission trading market, with the approval of the State Council, the three industries of iron and steel, cement and aluminium smelting are included in the management of the national carbon emission trading market. The greenhouse gas species covered are carbon dioxide (CO2), carbon tetrafluoride (CF4) and carbon hexafluoride (C2F6).
The following is the full text
of the Plan: The national carbon emissions trading market covers the steel, cement, and aluminum smelting industries.
In order to implement the requirements of the 2025 Report on the Work of the Government, This plan is formulated in accordance with the Interim Regulations on the Management of Carbon Emission Trading to actively, steadily and orderly incorporate the iron and steel, cement and aluminium smelting industries into the coverage of the national carbon emission trading market.
First, the overall requirement
is to fully implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee of the Communist Party of China, and to implement the deployment of the National Conference on Eco-environmental Protection under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, especially the thought of ecological civilization in Xi Jinping and the thought of Xi Jinping economy. According to the working idea of "implementing and perfecting at the same time", the iron and steel, cement and aluminium smelting industries should be integrated into the national carbon emission trading market in two stages, so as to actively, steadily and orderly expand the coverage of the national carbon emission trading market (hereinafter referred to as the expansion). With the national carbon emission trading market as the main body, we should improve the carbon pricing mechanism, optimize the allocation of carbon emission reduction resources, reduce the cost of carbon emission reduction in the whole society, and promote the establishment of a more effective, more dynamic and more internationally influential carbon market.
Start the implementation phase (2024-2026). The main objectives are to consolidate the basis of carbon emission management and promote enterprises to familiarize themselves with market rules, cultivate business entities, improve market supervision, and enhance the participation ability and management level of various entities. As the first management and control year of the steel, cement and aluminum smelting industries, 2024 will complete the first performance by the end of 2025. Among them, the 2024 annual quota is based on the verified actual carbon emissions, and the 2025 and 2026 annual quotas are allocated with the idea of carbon emission intensity control to encourage the advanced and spur the backward. The number of quotas obtained by enterprises is linked to the output of production capacity, and the quota surplus rate is reasonably determined. The overall quota profit and loss of the industry is basically balanced. To formulate guidelines for carbon emission accounting reports and verification, carry out monthly certification of key parameters, and consolidate the quality basis of carbon emission data. Promote key emission units to familiarize themselves with accounting reports, verification, quota allocation, quota clearance and market trading rules, establish a low-carbon development awareness of "carbon emission costs, carbon reduction benefits", and enhance carbon emission management capabilities.
Deepening and improvement stage (2027-). The system of policies and regulations is more perfect, the supervision and management mechanism is more sound, and the ability of all parties to participate in the market is improved in an all-round way. The quality of carbon emission data has been improved in an all-round way, and the authenticity, accuracy and integrity of the data have been strengthened in an all-round way. Quota allocation methods are more scientific and accurate, and a mechanism for gradual and moderate tightening of the total amount of quotas in industries with clear expectations, openness and transparency is established.
2. Implementing the management
of the list of key emission units (1) Determining the scope of control. Steel, cement and aluminum smelting industries control direct greenhouse gas emissions from fossil fuel combustion and industrial processes. Carbon dioxide (CO2) is the greenhouse gas controlled by the steel and cement industry, and carbon dioxide, carbon tetrafluoride (CF4) and carbon hexafluoride (C2F6) are the greenhouse gases controlled by the aluminum smelting industry. Accordingly, about 1500 new key emission units were added, covering an increase of about 3 billion tons of carbon dioxide equivalent.
(Two) identify key emission units. 2. The competent departments of ecological environment at the provincial level shall, in conjunction with the relevant departments at the same level, formulate a list of key emission units in the iron and steel, cement and aluminium smelting industries in their respective administrative regions in accordance with the above conditions, and submit it to the public through the national carbon market management platform.
(3) Do a good job of opening accounts in the system. The competent departments of ecological environment at the provincial level organize key emission units in the iron and steel, cement and aluminium smelting industries to complete the national carbon emission registration system, the national carbon emission trading system and the national carbon market management platform.
3. Carry out verification
of accounting reports (1) Formulate technical specifications for accounting reports and verification. The Ministry of Ecology and Environment formulates carbon emission accounting reports and verification guidelines for iron and steel, cement and aluminium smelting industries according to factors such as industry process characteristics, carbon emission characteristics, management capabilities and emission reduction costs, clarifies the requirements for classified management of key parameters in various industries, and gradually promotes enterprises to carry out high-quality measurement of parameters such as fuel, raw and auxiliary materials. For the parameters that do not meet the actual measurement conditions, the specified default values shall be used to replace the actual measurement. Explore online monitoring of carbon emissions.
(2) Organize and carry out monthly certificate deposit. According to the requirements of the industry accounting report guidelines, key emission units formulate and strictly implement the data quality control plan, carry out inspection and testing in accordance with the law and regulations, carry out monthly certification of key parameters, and submit them through the national carbon market management platform. To implement the "state-provincial-municipal" three-level data quality audit, the Ministry of Ecology and Environment organized local ecological environment authorities to conduct technical audits of monthly certificate data, and strictly checked key parameters such as fossil energy consumption.
(3) To organize and carry out annual report verification. Key emission units prepare annual emission reports according to the requirements of the industry accounting report guidelines and submit them through the national carbon market management platform. The competent departments of ecological environment at the provincial level shall verify the annual emission reports of key emission units, and the verification results shall serve as the basis for quota allocation and clearance. Key emission units shall be responsible for the authenticity, completeness and accuracy of the reported data.
4. Implementing quota management
(1) Formulating the total annual quota and allocation plan. The Ministry of Ecology and Environment, together with the relevant departments of the State Council, formulates the total annual carbon emission quota and allocation plan for the iron and steel, cement and aluminium smelting industries in accordance with the national greenhouse gas emission control targets. In the initial implementation stage, the quota allocation in 2024 is equal to the actual carbon emissions verified, and the quota in 2025 and 2026 is allocated based on the idea of carbon emission intensity control. In the stage of deepening and perfecting, we should optimize the quota allocation method according to the advanced level of the standard industry, and promote the continuous decline of carbon emissions per unit product output (output).
(Two) carry out quota issuance, clearance and trading. The competent departments of ecological environment at the provincial level, together with the relevant departments at the same level, allocate quotas to key emission units in their respective administrative areas through the national carbon emission registration system in accordance with the total amount and allocation plan of annual carbon emission quotas, and organize the implementation of the contract. The key emission units in the iron and steel, cement and aluminum smelting industries shall pay their carbon emission quotas in full to the provincial ecological environment authorities on an annual basis. Key emission units participating in the national carbon emission trading market will no longer participate in carbon emission trading in the local carbon emission trading market of the same greenhouse gas type and the same industry. Key emission units in power generation, steel, cement and aluminium smelting industries carry out centralized and unified trading of carbon emission quotas through the national carbon emission trading system.
Fifth, intensify efforts to
promote (1) Strengthen organizational leadership. The Ministry of Ecology and Environment is responsible for taking the lead in expanding the scope and strengthening organization and coordination. In light of the actual situation, all departments should work together to expand the scope according to the division of responsibilities. Establish a normal cooperation mechanism among departments to communicate and coordinate key issues in a timely manner. Widely listen to the opinions of departments, trade associations, technical service agencies and enterprises, and fully mobilize the enthusiasm of all parties to participate.
(2) Strengthen capacity building. We will improve the registration and trading rules of the national carbon emissions trading market. We will expand the functions of the national carbon market management platform and fully support the management of the list of key emission units and the verification of accounting reports. Upgrade and transform the national carbon emission registration system and trading system, improve system stability and service convenience, and promote the gradual integration into the unified public resources trading platform system. Specialized business training is provided for key emission units, technical service agencies, environmental protection public welfare organizations and other organizations. Promote key emission units to establish and improve the internal carbon emission data management system.
(3) Strengthen supervision and law enforcement. The supervision of the national carbon emission trading market is regarded as an important part of the daily supervision and law enforcement of the local ecological environment and market supervision departments. Establish the daily cooperation mechanism between local ecological environment authorities, registration agencies and trading agencies to ensure the safe and stable operation of the market. We will strengthen regular performance supervision, establish an inter-departmental information communication mechanism, and continuously track and assess the performance risks of key emission units. Organize and carry out supervision and law enforcement on the quality of carbon emission reporting data, classify and deal with the problems found, and severely crack down on violations of laws and regulations.
(4) Do a good job of follow-up evaluation. Establish a regular evaluation mechanism for the national carbon emissions trading market, comprehensively and systematically evaluate the effectiveness of the expansion, summarize the advanced experience and practices of the expansion, and lay the foundation for better promoting the expansion to more key emission industries. Continuously carry out research and judgment on the quality situation of carbon emission data, regularly analyze and summarize the outstanding problems of data quality in various industries, and timely propose optimization plans.
(5) Strengthen publicity and guidance. Do a good job of publicity and interpretation of policy documents related to expansion. Make full use of the platform mechanisms such as the China Carbon Market Conference, the National Low Carbon Day, the regular press conference of the Ministry of Ecology and Environment, and the authoritative channels such as the National Carbon Market Information Network to actively voice. Local governments and relevant units are encouraged to publicize and popularize relevant policies of the carbon market through various channels, so as to create a good social atmosphere for the construction and operation of the carbon market. Strengthen information disclosure, promote timely disclosure of relevant information such as emission, performance, transaction and pledge by relevant subjects in accordance with the law and regulations, and accept social supervision.