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

No. 775

 

The Interim Regulations on the Administration of Carbon Emissions Trading, which were adopted at the 23rd executive meeting of the State Council on January 5, 2024, are hereby promulgated and shall come into force on May 1, 2024.

 

Prime Minister Li Qiang Liu

25 January 2024　　　　

 

Interim Regulations on the Administration of Carbon Emissions Trading

 

Article 1In order to regulate carbon emissions trading and related activities, strengthen the control of greenhouse gas emissions, actively and steadily promote carbon neutrality, promote green and low-carbon economic and social development, and promote the construction of ecological civilization, these regulations are formulated.

Article IIThese Regulations apply to carbon emissions trading and related activities in the national carbon emissions trading market.

Article IIIThe management of carbon emissions trading and related activities should adhere to the leadership of the Communist Party of China, implement the party and the state's line, policies 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 justice.

The country strengthens international cooperation and exchanges in the field of carbon emissions trading.

Article 4The competent department of ecological environment under the State Council shall be responsible for the supervision and administration of carbon emission 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 ecological and environmental departments of the local people's governments shall be responsible for the supervision and administration of carbon emission trading and related activities within their respective administrative areas. 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 areas.

Article VThe national carbon emission right registration institution shall be responsible for the registration of carbon emission trading products and provide services such as transaction settlement in accordance with the relevant provisions of the state. The national carbon emissions trading institutions shall, in accordance with the relevant provisions of the State, be responsible for organizing the centralized and unified trading of carbon emissions rights. The fees for registration and transaction shall be reasonable, and the items, standards and management measures of fees shall be made public.

National carbon emission rights registration institutions and national carbon emission trading institutions shall, in accordance with relevant national regulations, improve relevant business rules and establish risk prevention and control and information disclosure systems.

The competent department of ecology and environment of the State Council, together with the market supervision and administration department of the State Council, the people's Bank of China and the banking supervision and administration agency of the State Council, shall supervise and manage the national carbon emission right registration institutions and the national carbon emission trading institutions, and strengthen information sharing and law enforcement cooperation.

Carbon emissions trading should be gradually incorporated into a unified public resource trading platform system.

ARTICLE VIThe types and industry scope of greenhouse gases covered by carbon emission trading shall be proposed by the competent department of ecological environment under the State Council in conjunction with the development and reform and other relevant departments of 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 emissions trading products include carbon emission quotas and other in stock trading products approved by the State Council.

Article VIIKey greenhouse gas emission units (hereinafter referred to as key emission units) included in the national carbon emission trading market and other entities that comply with relevant national regulations may participate in carbon emission trading.

The competent department of ecological environment, other departments responsible for the 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 rights registration institution, the national carbon emission trading institution and the staff of the technical service institutions stipulated in these regulations shall not participate in carbon emission trading.

Article 8The competent department of ecology and 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 the provincial people's governments) shall, in conjunction with the relevant departments at the same level, formulate the annual list of key emission units in their respective administrative regions in accordance with the conditions for determining the key emission units.

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

Article IXThe competent department of ecological environment of the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control objectives, comprehensively consider factors such as economic and social development, industrial structure adjustment, industry development stage, historical emission situation, market regulation needs and other factors, formulate the total annual carbon emission quota and distribution plan, and organize the implementation. Carbon emission quotas are allocated free of charge, and a combination of free and paid allocation is gradually implemented in accordance with the relevant requirements of the State.

The competent department of ecological environment of the people's government at the provincial level shall, in conjunction with the relevant departments at the same level, issue carbon emission quotas to key emission units within their respective administrative areas in accordance with the total amount of annual carbon emission quotas and distribution plans, and shall not issue or adjust carbon emission quotas in violation of the total amount of annual carbon emission quotas and distribution plans.

Article XIn accordance with the provisions of articles 6, 8 and 9 of these regulations, the types and industry scope of greenhouse gases covered by carbon emission trading, the conditions for determining key emission units, and the total amount and distribution plan of annual carbon emission quotas shall be studied and put forward, and the opinions of provincial people's governments, relevant trade associations, enterprises and institutions, experts and the public shall be solicited.

Article 11Key emission units shall take effective measures to control greenhouse gas emissions, formulate and strictly implement greenhouse gas emission data quality control plans in accordance with relevant national regulations and technical specifications formulated by the competent department of ecological environment under the State Council, and carry out greenhouse gas emission related inspection and testing by using measuring instruments that have passed or calibrated according to law, and truthfully and accurately calculate the 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 submit the emission statistical accounting data and the annual emission report to the ecological environment department of the provincial people's government where the production and operation site is located in accordance with the regulations.

Key emission units shall be responsible for the authenticity, completeness and accuracy of their emission statistical accounting data and annual emission reports.

Key emission units shall, in accordance with the relevant provisions of the State, disclose to the public the emissions, emission facilities, statistical accounting methods and other information in their annual emission reports. The original records and management ledgers of the data involved in the annual emission report shall be kept for at least 5 years.

Key emission units may entrust legally established technical service institutions to carry out greenhouse gas emission-related inspection and testing and prepare annual emission reports.

Article 12The competent department of ecological environment of the people's government at the provincial level shall verify the annual emission reports submitted by the 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 7 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 people's government at the provincial level may entrust a technical service institution established according to law to conduct technical examination and approval of the annual emission report by means of government purchase of services. Key emission units shall cooperate with technical service institutions to carry out technical audit work and truthfully provide relevant data and information.

Article 13Technical service institutions entrusted to carry out inspection and testing related to greenhouse gas emissions shall abide by the requirements of relevant national technical regulations and technical specifications, bear corresponding responsibilities for the inspection and testing reports issued by them, and shall not issue false or false inspection and testing reports. Key emission 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.

The technical service institutions entrusted to prepare the annual emission report and conduct technical audit on the annual emission report shall, in accordance with the relevant provisions of the State, have corresponding facilities, equipment, technical capabilities and technical personnel, establish a business quality management system, independently, objectively and impartially carry out relevant business, bear corresponding responsibilities for the annual emission report and technical audit opinions issued by them, and shall not tamper with or falsify data, no use of false data or other fraudulent acts. The specific administrative measures for the preparation and technical review of annual emission reports shall be formulated by the competent department of ecological environment under the State Council in conjunction with the relevant departments under the State Council.

Technical service institutions shall not engage in the preparation of annual emission reports and technical audit services at the same time within the scope of the same province, autonomous region or municipality directly under the Central Government.

Article 14Key emission units shall, in accordance with the verification results of the annual emission report by the competent department of ecological environment of the people's government at the provincial level and in accordance with the time limit prescribed by the competent department of ecological environment under the State Council, pay their carbon emission quotas in full.

Key emission units can purchase or sell carbon emission allowances through the national carbon emission trading market, and the carbon emission allowances purchased by them can be used for settlement.

Key emission units may, in accordance with the relevant provisions of the State, purchase certified greenhouse gas emission reductions for the payment of their carbon emission quotas.

Article XVCarbon emissions trading may take the form of agreement transfer, one-way bidding or other in stock trading in accordance with the relevant provisions of the State.

It is forbidden for any unit or individual to manipulate the national carbon emission trading market or disturb the order of the national carbon emission trading market by means of fraud, malicious collusion and spreading false information.

Article 16The competent department of ecology and environment of the State Council has established a national carbon emission trading market management platform, strengthened the supervision and management of the whole process of carbon emission quota allocation, payment and greenhouse gas emissions of key emission units, and realized information sharing with relevant departments of the State Council.

Article 17The competent department of ecological environment and other departments with supervision and management responsibilities may conduct on-site inspections of trading entities such as key emission units and technical service institutions within their respective responsibilities.

The competent department of ecological environment and other departments responsible for supervision and management shall conduct on-site inspection, and may take measures such as consulting and copying relevant materials, inquiring and inspecting relevant information systems, and may require relevant units and individuals to explain relevant matters. The person under inspection shall truthfully report the situation and provide information, and shall not refuse or hinder it.

For on-site inspection, the inspectors shall not be less than 2 persons and shall show their law enforcement certificates. The inspectors shall, in accordance with law, have the obligation to keep confidential the State secrets and business secrets they learn during the inspection.

Article 18Any unit or individual has the right to report any violation of the provisions of these regulations to the competent department of ecological environment and other departments responsible for supervision and management. The department that receives the report shall handle it in a timely manner in accordance with the law, feed back the handling results to the whistleblower in accordance with the relevant provisions of the state, and keep the whistleblower confidential.

Article 19If the staff of the competent department of ecological environment or other departments responsible for supervision and management abuse their power, neglect their duties or engage in malpractices for personal gain in the supervision and management of carbon emission trading and related activities, they shall be punished according to law.

Article 20If the staff of the competent department of ecological environment, other departments responsible for supervision and management, the national carbon emission right registration institution, the national carbon emission trading institution and the technical service institutions specified in these regulations participate in the trading of carbon emission rights, the ecological environment department of the State Council shall order the handling of the trading products such as carbon emission quotas in accordance with the law, confiscate the illegal income, and may be fined less than the price equivalent of the products such as carbon emission quotas traded in the local trading; those who belong to state functionants shall also be punished in accordance with the law.

Article 21If a key emission unit has one of the following circumstances, the competent department of ecological environment shall order it to make corrections and impose a fine of not less than 50000 yuan but not more than 500000 yuan; if it refuses to make corrections, it may be ordered to stop production for rectification:

The (I) fails to formulate and implement the GHG emission data quality control plan as required;

The (II) fails to submit the statistical accounting data and annual emission report in accordance with the provisions;

The (III) fails to disclose to the public the information on emissions, emission facilities and statistical accounting methods in the annual emission report in accordance with the provisions;

The (IV) fails to keep the original records and management ledgers of the data involved in the annual emission report in accordance with the regulations.

Article 22If a key emission unit has one of the following circumstances, the competent department of ecological environment shall order it 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 500000 yuan, a fine of not less than 500000 yuan but not more than 2 million yuan shall be imposed on the directly responsible person in charge and other directly responsible persons; if they refuse to make corrections, the carbon emission quota for the next year shall be reduced according to the proportion of 50% to 100, and may be ordered to stop production for rectification:

(I) failure to account for greenhouse gas emissions in accordance with regulations;

There are major defects or omissions in the annual emission report prepared by the (II), tampering with or falsifying data, using false data or carrying out other fraudulent acts in the process of preparing the annual emission report;

(III) samples are not produced and submitted for inspection in accordance with regulations.

Article 23If a technical service institution issues a false or false inspection and testing report, the competent department of ecological environment shall order it 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 20000 yuan, a fine of not less than 20000 yuan but not more than 100000 yuan shall be imposed; if the circumstances are serious, the department responsible for qualification shall cancel its inspection and testing.

There are major defects or omissions in the annual emission report or technical review opinions issued by the technical service agency, tampering with or falsifying data during the preparation of the annual emission report or the technical review of the annual emission report, using false data or committing other fraudulent acts, The competent department of ecological environment shall order corrections, confiscate the illegal income, and impose a fine of 5 times to 10 times the illegal income; if there is no illegal income or the illegal income is less than 200000 yuan, a fine of 200000 yuan up to 1 million yuan shall be imposed; if the circumstances are serious, it shall be prohibited from engaging in the preparation of annual emission reports and technical audit.

If a technical service institution is punished for the illegal acts specified in paragraphs 1 and 2 of this article, its directly responsible person in charge and other directly responsible personnel shall be fined not less than 20000 yuan but not more than 200000 yuan, and it shall be prohibited to engage in greenhouse gas emission related inspection and testing, annual emission report preparation and technical audit business within five years; if the circumstances are serious, it shall be prohibited to engage in the aforementioned business for life.

Article 24If 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 in the month before the time limit for payment of the unpaid carbon emission quota; if it refuses to make corrections, its carbon emission quota for the next year shall be reduced in accordance with the unpaid carbon emission quota, and may be ordered to suspend production for rectification.

Article 25Those who manipulate 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 1 time but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 500000 yuan, a fine of not less than 500000 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 and other persons directly responsible shall be given a warning and fined between 100000 yuan and 1 million yuan.

Those who disturb the order of 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 1 time but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 100000 yuan, a fine of not less than 100000 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 and other persons directly responsible shall be given a warning and fined between 50000 yuan and 500000 yuan.

Article 26Those who refuse or hinder 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 by the competent department of ecological environment or other departments responsible for supervision and management to make corrections and impose a fine of not less than 20000 yuan but not more than 200000 yuan.

Article 27The competent department of ecological environment under the State Council shall, in conjunction with the relevant departments of the State Council, establish a credit record system for trading entities such as key emission units and technical service institutions, and incorporate information such as administrative penalties imposed on trading entities such as key emission units and technical service institutions for violating the provisions of these regulations into the relevant national credit information system and announce it to the public in accordance with the law.

Article 28Anyone who violates the provisions of these Regulations and causes damage to others shall bear civil liability according to law; if it constitutes a violation of public security management, it shall be punished according to law; if it constitutes a crime, it shall be investigated for criminal responsibility according to law.

Article 29The local carbon emission trading market established before the implementation of these regulations shall, with reference to the provisions of these regulations, improve the relevant management system and strengthen supervision and management.

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 the carbon emission trading of the local carbon emission trading market of the same greenhouse gas type and the same industry.

Article 30The meaning of the following terms in these Regulations:

(I) greenhouse gases are natural and anthropogenic 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.

(II) carbon emission quota refers to the emission quota of carbon dioxide and other greenhouse gases allocated to key emission units within a specified period. One unit of carbon emission allowance is equivalent to one ton of carbon dioxide equivalent emitted into the atmosphere.

(III) clearing refers to the behavior of key emission units to pay carbon emission quotas equivalent to the actual greenhouse gas emissions of the previous year to the competent department of ecological environment within the prescribed time limit.

Article 31If a key emission unit consumes non-fossil energy power, its carbon emission quota and greenhouse gas emissions shall be adjusted accordingly in accordance with relevant national regulations.

Article 32The competent department of ecology and environment under the State Council, together with the competent departments of civil aviation and other competent departments under the State Council, may, in accordance with the principles stipulated in these regulations, according to actual needs, and in combination with the characteristics of greenhouse gas emission control in civil aviation and other industries, formulate specific management measures for the list of key emission units in civil aviation and other industries, the issuance and settlement of carbon emission quotas, statistical accounting of greenhouse gas emission data, and submission and annual emission reports.

Article 33These Regulations shall come into force on May 1, 2024.