Interim Regulations on the Administration of Carbon Emission Trading (Decree No. 775 of the State Council of the People's Republic of China)
Decree of the State Council of the People's Republic of
No. 775
The "Interim Regulations on the Administration of Carbon Emission Trading" was adopted at the 23rd executive meeting of the State Council on January 5, 2024, and is hereby promulgated to take effect on May 1, 2024.
Prime Minister Li Qiang
January 25, 2024
Interim Regulations on the Administration of Carbon Emission Trading
Article 1 These Regulations are formulated in order to regulate carbon emission trading and related activities, strengthen the control of greenhouse gas emissions, actively and steadily promote carbon peak and carbon neutrality, promote green and low-carbon economic and social development, and promote the construction of ecological civilization。
Article 2 These Regulations shall apply to carbon emission trading and related activities in the national carbon emission trading market。
Article 3 The management of carbon emission trading and related activities shall adhere to the leadership of the Communist Party of China, implement the line, principles, policies and decision-making arrangements of the Party and the state, 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 State shall strengthen international cooperation and exchanges in the field of carbon emission trading。
Article 4 The competent department of ecology and 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, in accordance with their duties and division of labor, be responsible for the supervision and management of carbon emission trading and related activities。
The competent department of ecology and 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 area。 The relevant departments of local people's governments shall, in accordance with their duties and division of labor, be responsible for the supervision and management of carbon emission trading and related activities within their respective administrative areas。
Article 5 The national carbon emission allowance registration agency 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。 In accordance with the relevant provisions of the state, the national carbon emission trading institution is responsible for organizing and carrying out centralized and unified trading of carbon emission rights。 Fees for registration and transactions shall be reasonable, and the charging items, charging standards, and management measures shall be disclosed to the public.
The national carbon emission allowance registration institution and the national carbon emission allowance trading institution shall, in accordance with the relevant provisions of the state, improve the relevant business rules, and establish a risk prevention and control and information disclosure system。
The competent department of ecology and environment under the State Council, together with the market supervision and administration department of the State Council, the People's Bank of China and the banking regulatory authority under the State Council, shall supervise and administer the national carbon emission allowance registration institutions and the national carbon emission trading institutions, and strengthen information sharing and law enforcement coordination.
Carbon emission trading should be gradually incorporated into a unified public resource 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 ecology and 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 targets, and shall be implemented after approval by the State Council。
Carbon emission trading products include carbon emission allowances and other spot trading products approved by the State Council.
Article 7 Key greenhouse gas emitting entities (hereinafter referred to as key emitting entities) that are 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 ecology and 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 allowance registration agency, the national carbon emission trading institution and the staff of the technical service institutions specified in these Regulations shall not participate in carbon emission trading。
Article 8 The competent department of ecology and environment under the State Council, in conjunction with the relevant departments of the State Council, shall, in accordance with the national greenhouse gas emission control targets, formulate the conditions for determining key emitting entities。 The competent departments of ecology and environment of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter collectively referred to as provincial-level people's governments), together with the relevant departments at the same level, shall, in accordance with the conditions for determining key emitting enterprises, formulate an annual list of key emitting enterprises in their respective administrative regions。
The conditions for determining key emitting enterprises and the annual list of key emitting enterprises shall be published to the public。
Article 9 The competent department of ecology and environment under the State Council, in conjunction with the relevant departments of the State Council, shall, on the basis of national greenhouse gas emission control targets, comprehensively consider factors such as economic and social development, industrial structure adjustment, industry development stage, historical emissions, and market regulation needs, formulate a total annual carbon emission quota and allocation plan, and organize its implementation。 Carbon emission allowances shall be allocated free of charge, and a combination of free and paid allocation methods shall be gradually implemented according to the relevant national requirements。
The competent department of ecology and environment of the provincial-level people's government, in conjunction with the relevant departments at the same level, shall issue carbon emission quotas to key emitting enterprises within their respective administrative areas in accordance with the total annual carbon emission quota and allocation plan, and shall not issue or adjust carbon emission allowances in violation of the annual carbon emission quota total amount and allocation plan。
Article 10 In accordance with the provisions of Articles 6, 8 and 9 of these Regulations, the opinions of provincial-level people's governments, relevant industry associations, enterprises and public institutions, experts and the public shall be solicited for the types of greenhouse gases to be covered by carbon emission trading and the scope of industries, the conditions for determining key emitting entities, and the total amount and allocation of annual carbon emission allowances。
Article 11 Key emitting enterprises shall take effective measures to control greenhouse gas emissions, formulate and strictly implement a 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 ecology and environment under the State Council, use measuring instruments that have passed the measurement verification or calibration in accordance with the law to carry out inspection and testing related to greenhouse gas emissions, truthfully and accurately calculate the greenhouse gas emissions of their own units, compile the greenhouse gas emission report of the previous year (hereinafter referred to as the annual emission report), and carry out statistical accounting data on emissions in accordance with regulationsThe annual emission report shall be submitted to the competent department of ecology and environment of the provincial-level people's government where the production and operation sites are located.
Key emitting enterprises shall be responsible for the authenticity, completeness and accuracy of their emission statistics and accounting data and annual emission reports。
Key emitting enterprises shall, in accordance with relevant state regulations, disclose to the public information such as emissions, emission facilities, and statistical accounting methods in their annual emission reports。 The original records and management ledgers of the data involved in the annual emissions report shall be kept for at least 5 years.
Key emitting enterprises may entrust a technical service organization established in accordance with the law to carry out inspections and tests related to greenhouse gas emissions and prepare annual emission reports。
Article 12 The competent department of ecology and environment of the provincial-level people's government shall verify the annual emission reports submitted by key emitting enterprises to 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 emitting enterprises within 7 working days from the date of completion of the verification。 The results of the verification shall be disclosed to the public.
The competent department of ecology and environment of the provincial-level people's government may, through government procurement of services, entrust a technical service institution established in accordance with law to conduct a technical review of the annual emission report. Key emitting enterprises shall cooperate with technical service institutions to carry out technical audits and truthfully provide relevant data and materials。
Article 13 Technical service institutions entrusted to carry out inspection and testing related to greenhouse gas emissions shall comply with the requirements of relevant national technical regulations and technical specifications, bear corresponding responsibility for the inspection and testing reports issued by them, and shall not issue false or false inspection and testing reports. Key emitting enterprises shall prepare and submit samples for testing in accordance with relevant national regulations, and shall be responsible for the representativeness and authenticity of the samples。
Technical service institutions entrusted with the preparation of annual emission reports and technical audits of annual emission reports shall, in accordance with relevant national regulations, have corresponding facilities and equipment, technical capabilities and technical personnel, establish a business quality management system, carry out relevant business independently, objectively and fairly, and bear corresponding responsibilities for the annual emission reports and technical audit opinions issued by them, and shall not tamper with or falsify data, and shall not use false data or other fraudulent acts. The specific administrative measures for the preparation of annual emission reports and technical review shall be formulated by the competent department of ecology and environment under the State Council in conjunction with the relevant departments of the State Council.
Technical service institutions shall not engage in the preparation of annual emission reports and technical audit business within the scope of the same province, autonomous region or municipality directly under the Central Government at the same time。
Article 14 Key emitting enterprises shall, on the basis of the verification results of the annual emission report by the competent department of ecology and environment of the provincial-level people's government, pay their carbon emission quotas in full within the time limit prescribed by the competent department of ecology and environment under the State Council。
Key emitting entities can buy or sell carbon emission allowances through the national carbon emission trading market, and the carbon emission allowances they purchase can be used for settlement.
Key emitting enterprises may, in accordance with relevant national regulations, purchase certified greenhouse gas emission reductions to settle their carbon emission allowances。
Article 15 Carbon emission trading may take the form of agreement transfer, one-way bidding or other spot trading methods that comply with relevant national regulations。
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 through fraud, malicious collusion, dissemination of false information, etc.
Article 16 The competent department of ecology and environment under the State Council shall establish a national carbon emission trading market management platform, strengthen the supervision and management of the whole process of carbon emission quota allocation and clearance, as well as the greenhouse gas emissions of key emitting entities, and share information with the relevant departments of the State Council。
Article 17 The competent departments of ecology and environment and other departments responsible for supervision and management may, within the scope of their respective duties, conduct on-site inspections of key emitting entities and other trading entities and technical service institutions。
The competent departments of ecology and environment and other departments with supervision and management responsibilities may take measures such as consulting and copying relevant materials, inquiring and inspecting relevant information systems, and may require relevant units and individuals to make explanations on relevant matters. The person being inspected shall truthfully report the situation and provide materials, and must not refuse or obstruct it.
To conduct on-site inspections, there shall be no less than 2 inspectors, and law enforcement certificates shall be presented. Inspectors shall have an obligation to keep confidential state secrets and commercial secrets learned during inspections in accordance with law.
Article 18: Any unit or individual has the right to report any conduct that violates the provisions of these Regulations to the competent department of ecology and environment and other departments responsible for supervision and management. Departments receiving reports shall promptly handle them in accordance with law, give feedback on the results of the handling to the informant in accordance with relevant state provisions, and maintain the confidentiality of the informant.
Article 19 Where the staff of the competent department of ecology and environment or other departments responsible for supervision and management abuse their powers, derelict their duties, or twist the law for personal gain in the supervision and management of carbon emission trading and related activities, they shall be punished in accordance with law。
Article 20 Where the staff of the competent department of ecology and environment, other departments responsible for supervision and management, the national carbon emission allowance registration agency, the national carbon emission trading institution and the technical service institutions provided for in these Regulations participate in carbon emission trading, the competent department of ecology and environment under the State Council shall order them to dispose of the carbon emission allowances and other trading products in their possession in accordance with the law, confiscate the illegal gains, and may also impose a fine of less than the equivalent of the price of the carbon emission allowances and other products traded;
Article 21 In any of the following circumstances, the competent department of ecology and environment shall order a key emitting enterprise to make corrections and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan;
(1) Failing to formulate and implement a quality control plan for greenhouse gas emission data in accordance with regulations;
(2) Failing to submit emission statistics and accounting data and annual emission reports in accordance with regulations;
(3) Failing to disclose to the public information such as emissions, discharge facilities, and statistical accounting methods in the annual emissions report in accordance with regulations;
(4) Failing to keep the original records and management ledgers of the data involved in the annual emission report in accordance with the regulations.
Article 22 In any of the following circumstances, a key discharging enterprise shall be ordered by the competent department of ecology and environment to make corrections, confiscate its illegal gains, and impose a fine of not less than 5 times but not more than 10 times the amount of its illegal gains; if it has no illegal gains or its illegal gains are less than 500,000 yuan, it shall be fined not less than 500,000 yuan but not more than 2,000,000 yuan; if it refuses to make corrections, it shall be fined not less than 50% but not more than 200,000 yuan The following proportions will be reduced by their carbon emission allowances for the next year, and they may be ordered to suspend production for rectification:
(1) Failing to calculate greenhouse gas emissions in accordance with regulations;
(2) There are major defects or omissions in the preparation of the annual emission report, tampering with or falsifying data in the process of preparing the annual emission report, using false data or other fraudulent acts;
(3) Failure to make and submit samples for testing in accordance with regulations.
Article 23 Where a technical service institution issues a false or false inspection and testing report, the competent department of ecology and 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; and if the circumstances are serious, the department responsible for qualification certification shall cancel its inspection and testing qualifications.
There are major defects or omissions in the annual emission report or technical audit opinion issued by the technical service organization, and tampering with or tampering with in the process of preparing the annual emission report or conducting a technical review of the annual emission report. Anyone who falsifies data, uses false data or commits other fraudulent acts, shall be ordered 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 200,000 yuan, a fine of not less than 200,000 yuan but not more than 1 million yuan shall be imposed; and if the circumstances are serious, they shall be prohibited from engaging in the preparation of annual emission reports and technical audits.
Where technical service institutions are punished for the illegal acts provided for in paragraphs 1 and 2 of this article, their directly responsible managers and other directly responsible personnel shall be fined between 20,000 and 200,000 yuan, and shall be prohibited from engaging in greenhouse gas emissions-related inspection and testing, preparation of annual emission reports and technical audits for 5 years;
Article 24 Where a key emitting entity fails to pay its carbon emission allowances in accordance with regulations, the competent department of ecology and 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 unpaid carbon emission allowances in the month before the time limit for clearing them;
Article 25 Where the national carbon emission trading market is manipulated, the competent department of ecology and environment under the State Council shall order corrections, confiscate the illegal gains, and impose a fine of not less than 1 time but not more than 10 times the illegal gains, and if there are no illegal gains or the illegal gains are less than 500,000 yuan, a fine of not less than 500,000 yuan but not more than 5 million yuan shall be imposed。 Where a unit is punished for the above-mentioned illegal acts, the directly responsible managers and other directly responsible personnel are to be given warnings and fined between 100,000 and 1,000,000 RMB.
If the order of the national carbon emission trading market is disrupted, the competent department of ecology and environment under the State Council shall order corrections, confiscate the illegal gains, and impose a fine of not less than 1 time but not more than 10 times the illegal gains, and if there are no illegal gains or the illegal gains are less than 100,000 yuan, a fine of not less than 100,000 yuan but not more than 1 million yuan shall be imposed。 Where a unit is punished for the above-mentioned illegal acts, the directly responsible managers and other directly responsible personnel are to be given warnings and fined between 50,000 and 500,000 RMB.
Article 26: Where the competent departments for ecology and the environment or other departments with oversight and management duties are refused or obstructed from carrying out supervision and inspections in accordance with law, the competent departments for ecology and the environment or other departments with oversight and management duties are to order corrections and impose a fine of between 20,000 and 200,000 RMB.
Article 27: The competent department for ecology and the environment under the State Council, in conjunction with the relevant departments of the State Council, is to establish a credit record system for key emitting entities and other trading entities and technical service establishments, and include information such as information on key emitting entities and other trading entities and technical service establishments receiving administrative punishments for violating the provisions of these Regulations in the relevant national credit information system, and release it to the public in accordance with law.
Article 28: Whoever violates the provisions of these Regulations and causes harm to others shall bear civil liability in accordance with law; where a violation of the administration of public security is constituted, a public security administrative punishment shall be given in accordance with law; and where a crime is constituted, criminal responsibility shall be pursued in accordance with law.
Article 29 The local carbon emission trading markets established before the implementation of these Regulations shall refer to the provisions of these Regulations to improve the relevant management systems and strengthen supervision and management。
After the implementation of these Regulations, no new local carbon emission trading markets will be established, and key emitting enterprises will no longer participate in the carbon emission trading of local carbon emission trading markets of the same greenhouse gas types and industries。
Article 30: The meanings of the following terms in these Regulations:
(1) 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 quota refers to the emission quota of carbon dioxide and other greenhouse gases allocated to key emitting enterprises within a specified period. One unit of carbon emission allowance is equivalent to emitting 1 tonne of carbon dioxide equivalent into the atmosphere.
(3) "Clearance" refers to the act of key emitting entities paying carbon emission quotas equivalent to the actual greenhouse gas emissions of the previous year that have been verified and confirmed by them to the competent department of ecology and environment within the prescribed time limit.
Article 31 Where key emitting enterprises consume electricity from non-fossil energy, their carbon emission quotas and greenhouse gas emissions shall be adjusted accordingly in accordance with the relevant provisions of the State。
Article 32 The competent department of ecology and environment under the State Council, together with the competent department of civil aviation and other departments under the State Council, may, in accordance with the principles set forth in these Regulations, formulate specific management measures for the formulation of the list of key emitting entities in the civil aviation and other industries, the issuance and settlement of carbon emission quotas, the statistical accounting of greenhouse gas emission data, and the submission and verification of annual emission reports in accordance with the principles set forth in these Regulations, and in consideration of the characteristics of greenhouse gas emission control in civil aviation and other industries.
Article 33: These Regulations take effect on May 1, 2024.
