Hubei has issued interim measures for the management of carbon emission trading
Recently, the "Interim Measures for the Administration of Carbon Emission Trading in Hubei Province" (hereinafter referred to as the "Management Measures") was announced. The Administrative Measures, which will come into force on March 1, 2024, comprehensively revise the Interim Measures for the Management and Trading of Carbon Emission Allowances in Hubei Province, which are currently in force, to ensure the long-term and stable operation of the Hubei carbon market by expanding industry coverage and enhancing trading activity.
The carbon market is not only a major institutional innovation to control greenhouse gas emissions through market mechanisms, but also an important policy tool to promote the realization of carbon peak and carbon neutrality. In 2011, the state specified that seven places, including Hubei, would carry out pilot carbon emission trading and start the construction of regional carbon markets. Since the launch of the Hubei regional carbon market, Hubei Province has continued to explore and innovate in institutional design, quota allocation, data quality, financial innovation, etc., and the cumulative trading volume and turnover of carbon allowances in the Hubei regional carbon market have continued to be at the forefront of the national regional carbon market, and a number of institutional designs and work experience have been recognized by the state and adopted by the national carbon market.
The newly promulgated "Management Measures" have been revised according to the Ministry of Ecology and Environment's carbon emission trading management measures and the current situation of regional carbon market trading, with a total of 7 chapters and 42 articles, focusing on the carbon emission trading management system, carbon emission allowance allocation management, carbon emission trading and incentive and restraint measures.
Focusing on lowering the threshold and expanding the industry, the "Administrative Measures" make it clear that the inclusion threshold of industrial enterprises has been adjusted from 10,000 tons of standard coal (equivalent to 26,000 tons of carbon dioxide equivalent in annual greenhouse gas emissions) to 13,000 tons of carbon dioxide equivalent, and has made a connection provision for the adjustment of the inclusion standards of industrial enterprises. At the same time, in order to give full play to the role of the regional carbon market in promoting the green and low-carbon transformation of non-industrial industries, non-industrial enterprises will be gradually included in the Hubei carbon market (currently the Hubei carbon market includes 16 industrial industries such as cement, steel, and petrochemicals).
In order to increase trading activity, the Administrative Measures specify that quota pre-allocation will be carried out and the time schedule will be clarified to extend the quota retention time and enhance trading activity. The "Administrative Measures" also proposes to introduce paid quota allocation in a timely manner. Enrich the trading varieties of voluntary emission reductions.
The "Management Measures" also propose to encourage the innovation of carbon financial products such as carbon emission rights pledge, carbon bonds, carbon insurance, and carbon funds.
According to reports, the Hubei carbon market to lower the threshold and expand the industry is an important measure to continue to give full play to the market mechanism to promote green and low-carbon transformation, which is conducive to the Hubei carbon market and the national carbon market to form a complementary coverage, and effectively promote Hubei Province to complete the goal of carbon peak and carbon neutrality with high quality.
