On January 5, 2021, the Ministry of Ecology and Environment issued the "Management Measures for Carbon Emission Trading (Trial)". According to the content, the carbon emission rights trading management measures (for trial implementation) will come into effect on February 1, 2021.

The provincial-level ecological and environmental authorities shall, in accordance with the total carbon emission allowance determination and allocation plan formulated by the Ministry of Ecology and Environment, allocate the prescribed annual carbon emission allowances to key emission units within their administrative regions. The allocation of carbon emission allowances is mainly free allocation, and paid allocation can be introduced in a timely manner in accordance with relevant national requirements.

Key emission units can use national certified voluntary emission reductions to offset the payment of carbon emission allowances each year, and the offset ratio shall not exceed 5% of the carbon emission allowances that should be paid off. The relevant regulations shall be separately formulated by the Ministry of Ecology and Environment.

In addition, the key emission unit shall, in accordance with the greenhouse gas emission accounting and reporting technical specifications formulated by the Ministry of Ecology and Environment, prepare the unit's greenhouse gas emission report for the previous year, specify the emission amount, and report to the location of the production and business site before March 31 of each year. The provincial ecological and environmental authorities. The original records and management ledgers of the data involved in the emission report should be kept for at least five years.

The "Measures for the Management of Carbon Emission Trading (for Trial Implementation)" were reviewed and approved by the Ministry of Ecology and Environment Ministerial Meeting on December 25, 2020, and are hereby promulgated, and will come into force on February 1, 2021.

Minister of Ecology and Environment Huang Runqiu

December 31, 2020

Measures for the Administration of Carbon Emissions Trading

(Trial)

Chapter One General Provisions

Article 1 is to implement the decision and deployment of the Party Central Committee and the State Council on building a national carbon emission trading market, give full play to the role of market mechanisms in responding to climate change and promoting green and low-carbon development, promote greenhouse gas emissions reduction, and standardize national carbon emission trading And related activities, these measures are formulated in accordance with the country’s requirements for greenhouse gas emission control.

Article 2 These Measures apply to national carbon emission rights trading and related activities, including carbon emission allowance allocation and payment, carbon emission rights registration, trading, settlement, greenhouse gas emission reporting and verification activities, as well as the supervision and management of the foregoing activities .

Article 3 National carbon emission rights trading and related activities shall adhere to the principles of market orientation, gradual progress, fairness and openness, and honesty and trustworthiness.

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

The types of greenhouse gases and the scope of the industry covered by the national carbon emission trading market shall be formulated by the Ministry of Ecology and Environment, implemented after being submitted for approval in accordance with the procedures, and made public.

Article 5 The Ministry of Ecology and Environment, in accordance with relevant national regulations, organizes the establishment of a national carbon emission rights registration institution and a national carbon emission rights trading institution, and organizes the construction of a national carbon emission rights registration and registration system and a national carbon emission rights trading system.

The national carbon emission rights registration agency records the holding, modification, payment, and cancellation of carbon emission allowances through the national carbon emission rights registration system, and provides settlement services. The information recorded by the national carbon emission rights registration system is the ultimate basis for judging the ownership of carbon emission allowances.

The National Carbon Emissions Trading Agency is responsible for organizing and carrying out centralized and unified trading of national carbon emission rights.

The national carbon emission rights registration agency and the national carbon emission rights trading agency shall regularly report to the Ministry of Ecology and Environment the status of the national carbon emission rights registration, trading, settlement and other activities and institutional operations, as well as other major issues that should be reported, and ensure that the national carbon emissions The emission rights registration system and the national carbon emission rights trading system operate safely, stably and reliably.

Article 6 The Ministry of Ecology and Environment is responsible for formulating national carbon emission rights trading and related activities technical specifications, strengthening the supervision and management of local carbon emission quota allocation, greenhouse gas emission reporting and verification, and cooperating with other relevant departments of the State Council on national carbon emission trading And related activities for supervision, management and guidance.

The provincial ecological and environmental authorities are responsible for organizing and carrying out related activities such as the allocation and clearing of carbon emission allowances, the verification of greenhouse gas emission reports, and supervision and management within their administrative regions.

The competent department of ecological environment at the city level divided into districts shall be responsible for cooperating with the competent department of provincial ecological environment to implement relevant specific work, and implement supervision and management in accordance with the relevant provisions of these Measures.

Article 7 The national carbon emission rights registration agency and the national carbon emission trading agency and their staff shall abide by the technical specifications of the national carbon emission rights trading and related activities, and comply with the regulations of other relevant national authorities on transaction supervision.

Chapter II Key Greenhouse Gas Emission Units

Article 8 Greenhouse gas emission units that meet the following conditions shall be included in the list of key greenhouse gas emission units (hereinafter referred to as key emission units):

(1) It belongs to the industry covered by the national carbon emission trading market;

(2) Annual greenhouse gas emissions reached 26,000 tons of carbon dioxide equivalent.

Article 9 The competent department of ecological environment at the provincial level shall, in accordance with the relevant regulations of the Ministry of Ecology and Environment, determine the list of key emission units in its administrative area, report to the Ministry of Ecology and Environment, and make it public.

Article 10 Key emission units shall control greenhouse gas emissions, report carbon emission data, clear carbon emission quotas, publicly trade and related activity information, and accept the supervision and management of the competent department of ecological environment.

Article 11 In any of the following circumstances, the provincial-level ecological and environmental authority that determined the list shall remove the relevant greenhouse gas emission units from the list of key emission units:

(1) The greenhouse gas emissions have not reached 26,000 tons of carbon dioxide equivalent for two consecutive years;

(2) No longer engage in production and business activities due to suspension, closure or other reasons, and therefore no longer emit greenhouse gases.

Article 12 When a greenhouse gas emission unit applies for inclusion in the list of key emission units, the provincial ecological and environmental authority that determined the list shall verify it; if it is verified that it meets the conditions specified in Article 8 of these Measures, it shall be included in the list of key emission units.

Article 13 The key emission units included in the national carbon emission rights trading market will no longer participate in the local carbon emission rights trading pilot market.

Chapter III Distribution and Registration

Article 14 The Ministry of Ecology and Environment shall, in accordance with the national greenhouse gas emission control requirements, comprehensively consider factors such as economic growth, industrial structure adjustment, energy structure optimization, and coordinated control of air pollutant emissions, and formulate a total carbon emission quota determination and allocation plan.

The provincial-level ecological and environmental authorities shall, in accordance with the total carbon emission allowance determination and allocation plan formulated by the Ministry of Ecology and Environment, allocate the prescribed annual carbon emission allowances to key emission units within their administrative regions.

Article 15 The allocation of carbon emission allowances is mainly free allocation, and paid allocation can be introduced in a timely manner in accordance with relevant national requirements.

Article 16 After determining the carbon emission quota, the provincial-level ecological and environmental authority shall notify the key emission unit in writing.

If a key emission unit disagrees with the assigned carbon emission quota, it may apply for a review to the provincial eco-environmental authority that allocates the quota within seven working days from the date of receiving the notification; the provincial eco-environmental authority shall receive A review decision shall be made within ten working days from the date of the review application.

Article 17 The key emission unit shall open an account in the national carbon emission right registration system to conduct related business operations.

Article 18 In the case of mergers, divisions, etc. of key emission units, it is necessary to change the name of the unit, carbon emission quotas, etc., it shall report to the local provincial-level ecological and environmental authority for review, and apply to the national carbon emission rights registration agency for change registration. The national carbon emission right registration agency shall register the change through the national carbon emission right registration system and make it public.

Article 19 The state encourages key emission units, institutions and individuals to voluntarily cancel their carbon emission quotas for public welfare purposes such as reducing greenhouse gas emissions.

Voluntary cancellation of carbon emission quotas shall be reduced by the same amount from the total amount of national carbon emission quotas, and no allocation, registration or trading shall be carried out. The relevant cancellation situation should be disclosed to the public.

Chapter 4 Emissions Trading

Article 20 The trading products of the national carbon emission rights trading market are carbon emission quotas, and the Ministry of Ecology and Environment may add other trading products in a timely manner in accordance with relevant national regulations.

Article 21: Key emission units and institutions and individuals that comply with relevant national trading rules are the trading entities in the national carbon emission trading market.

Article 22 Carbon emission rights trading shall be conducted through the national carbon emission rights trading system, and may adopt agreement transfer, one-way bidding or other methods that comply with regulations.

National carbon emission trading institutions shall, in accordance with the relevant regulations of the Ministry of Ecology and Environment, take effective measures to give play to the role of the national carbon emission trading market in guiding greenhouse gas emission reduction, prevent excessive speculative trading activities, and maintain the healthy development of the market.

Article 23 The national carbon emission rights registration agency shall, based on the transaction results provided by the national carbon emission rights trading agency, update relevant information for trading entities in a timely manner through the national carbon emission rights registration system.

Article 24 The national carbon emission rights registration institution and the national carbon emission rights trading institution shall, in accordance with relevant national regulations, realize the timely, accurate and safe exchange of data.

Chapter V Emission Verification and Allowance Payment

Article 25 The key emission unit shall, in accordance with the greenhouse gas emission accounting and reporting technical specifications formulated by the Ministry of Ecology and Environment, prepare the unit’s greenhouse gas emission report for the previous year, specify the emission amount, and report to production before March 31 of each year. The provincial ecological and environmental authority where the business site is located. The original records and management ledgers of the data involved in the emission report should be kept for at least five years.

Key emission units are responsible for the authenticity, completeness and accuracy of greenhouse gas emission reports.

The annual greenhouse gas emission reports prepared by key emission units shall be published regularly and subject to social supervision, except for those involving state secrets and commercial secrets.

Article 26 The competent department of ecological environment at the provincial level shall organize and carry out the verification of the greenhouse gas emission report of the key emission unit, and inform the key emission unit of the verification result. The results of the verification shall be used as the basis for the payment of carbon emission quotas for key emission units.

Provincial-level ecological and environmental authorities may entrust technical service agencies to provide verification services through government purchases of services. The technical service organization shall be responsible for the authenticity, completeness and accuracy of the submitted verification results.

Article 27 If a key emission unit disagrees with the verification result, it may, within seven working days from the date of being notified of the verification result, apply for a review to the provincial ecological and environmental authority that organized the verification; the provincial ecological and environmental authority shall A review decision shall be made within ten working days from the date of receipt of the review application.

Article 28 The key emission units shall, within the time limit set by the Ministry of Ecology and Environment, hand in the carbon emission quotas of the previous year to the provincial ecological and environmental authorities that allocate the quotas. The amount paid should be greater than or equal to the actual greenhouse gas emissions of the unit in the previous year as confirmed by the verification results of the provincial competent department of ecological environment.

Article 29 The key emission units can use the state-certified voluntary emission reductions to offset the payment of carbon emission quotas each year, and the offset ratio shall not exceed 5% of the carbon emission quotas that should be cleared. The relevant regulations shall be separately formulated by the Ministry of Ecology and Environment.

The state-certified voluntary emission reductions used for offsetting must not come from emission reduction projects that are included in the quota management of the national carbon emission trading market.

Chapter VI Supervision and Administration

Article 30 The higher-level ecological and environmental authorities shall strengthen the supervision, inspection and guidance of the list of key emission units of the lower-level ecological and environmental authorities, as well as the national carbon emission rights trading and related activities.

Article 31 The local ecological and environmental authorities at or above the city level with districts shall determine the focus and frequency of supervision and inspection based on the verification results of the greenhouse gas emission reports of key emission units.

Local ecological and environmental authorities at or above the city level with districts shall adopt a "double random, one open" approach to supervise and inspect the greenhouse gas emissions and carbon emission quota payment of key emission units, and the relevant information shall be reported to the Ministry of Ecology and Environment in accordance with the procedures.

Article 32 The Ministry of Ecology and Environment and the provincial competent department of ecological environment shall, in accordance with the division of responsibilities, regularly disclose information such as the clearing of annual carbon emission quotas of key emission units.

Article 33 The national carbon emission rights registration institutions and the national carbon emission rights trading institutions shall abide by the relevant regulations of national transaction supervision, establish risk management mechanisms and information disclosure systems, formulate risk management plans, and publish carbon emission rights registration and trading in a timely manner , Settlement and other information.

The staff of the National Carbon Emission Rights Registration Agency and the National Carbon Emission Rights Trading Agency shall not use their positions to facilitate illegitimate gains and shall not disclose business secrets.

Article 34 If a trading entity violates the relevant provisions of these Measures on the registration, settlement or trading of carbon emission rights, the national carbon emission rights registration institution and the national carbon emission rights trading institution may take measures to restrict trading against them in accordance with relevant national regulations .

Article 35 The public, news media, etc. are encouraged to supervise the carbon emission rights trading and related activities of key emission units and other trading entities.

Key emission units and other trading entities shall, in accordance with the relevant regulations of the Ministry of Ecology and Environment, promptly disclose information about national carbon emission trading and related activities, and consciously accept public supervision.

Article 36: Citizens, legal persons, and other organizations that have discovered that key emission units and other trading entities have violated the provisions of these Measures shall have the right to report to the local ecological and environmental authorities at or above the districted city level.

The competent department of ecological environment that accepts the report shall deal with it in accordance with the law, and feedback the results of the processing in accordance with relevant regulations, and at the same time keep the reporter confidential.

Chapter VII Penalty Provisions

Article 37 The relevant staff of the Ministry of Ecology and Environment, the provincial-level ecological and environmental authorities, and the municipal-level ecological and environmental authorities in districts have abused their powers, neglected their duties, and acted for personal gains in the supervision and management of national carbon emission rights trading and related activities. In case of fraud, the administrative organ or supervisory organ at the higher level shall order it to make corrections and impose sanctions in accordance with the law.

Article 38 If the National Carbon Emission Rights Registration Agency and the National Carbon Emission Rights Trading Agency and their staff violate the provisions of these Measures and commit one of the following acts, the Ministry of Ecology and Environment shall give sanctions in accordance with the law and disclose the results of the handling to the public:

(1) Taking advantage of position to seek illegitimate benefits;

(2) Other acts of abuse of power, dereliction of duty, or malpractice for personal gain.

If the national carbon emission rights registration agency and the national carbon emission trading agency and their staff violate the provisions of these Measures, disclose relevant business secrets or constitute other violations of national trading supervision regulations, they shall be dealt with in accordance with other relevant regulations.

Article 39 If a key emission unit falsely reports or conceals its greenhouse gas emission report, or refuses to perform its obligation of reporting greenhouse gas emission, the local ecological and environmental authority at or above the municipal level where its production and business site is located shall order it to make corrections within a time limit and impose a punishment. A fine of not less than 10,000 yuan but not more than 30,000 yuan. If the correction is not made within the time limit, the provincial eco-environmental authority at the location of the key emission unit's production and operation site will calculate the actual amount of greenhouse gas emissions, and use this amount as the basis for the payment of carbon emission quotas; false reporting, under-reporting, etc. It will reduce its carbon emission quota for the next year.

Article 40 If a key emission unit fails to pay off its carbon emission quotas on time and in full, the local ecological and environmental authority at or above the municipal level where its production and business site is located shall order corrections within a time limit and impose a fine of 20,000 yuan up to 30,000 yuan. ; For those who fail to make corrections within the time limit, for the part that is not paid, the provincial eco-environmental authority at the location of the key emission unit's production and business site will reduce its carbon emission quota for the next year by the same amount.

Article 41 If a crime is suspected of violating the provisions of these Measures, the relevant ecological environment competent department shall transfer it to the judicial organ in accordance with the law.

Chapter 8 Supplementary Provisions

Article 42 The meaning of the following terms in these Measuresrighteous:

(1) Greenhouse gas: refers to the natural and man-made gaseous components in the atmosphere that absorb and re-emit infrared radiation, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).

(2) Carbon emissions: refers to the greenhouse gas emissions generated by coal, oil, natural gas and other fossil energy combustion activities and industrial production processes, as well as land use changes and forestry activities. It also includes the use of purchased electricity and heat. emission of greenhouse gases.

(3) Carbon emission rights: refers to the carbon emission credits allocated to key emission units within a specified period.

(4) National certified voluntary emission reduction: refers to the quantitative verification of the greenhouse gas emission reduction effects of renewable energy, forestry carbon sinks, methane utilization and other projects in my country, and registration in the national voluntary emission reduction transaction The amount of greenhouse gas emission reductions registered in the system.

Article 43 These Measures shall come into force on February 1, 2021.