Expert interpretation|Zhu Xiao, Chinese University of China: The Interim Regulations on the Administration of Carbon Emission Trading provide a strong institutional guarantee for achieving the goal of carbon peak and carbon neutrality

Carbon emission trading is a major institutional innovation that uses market mechanisms to control and reduce greenhouse gas emissions, and is an important measure to achieve the goal of carbon peak and carbon neutrality. The Interim Regulations on the Administration of Carbon Emission Trading (hereinafter referred to as the "Regulations") establish and improve the carbon emission trading system in the form of special administrative regulations on the basis of years of exploration and experience, so as to ensure that carbon emission trading activities have laws to follow. The promulgation of the "Regulations" is a legislative response to the requirements of "accelerating the construction and improvement of the national carbon emission trading market" put forward in the "Opinions of the Central Committee of the Communist Party of China and the State Council on Completely, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality", and also provides an important institutional guarantee for the implementation of the strategic deployment of the report of the 20th National Congress of the Communist Party of China to "actively and steadily promote carbon peak and carbon neutrality".

Prior to the promulgation of the Regulations, the management of carbon emissions trading mainly relied on departmental regulations. In December 2014, the National Development and Reform Commission (NDRC) promulgated the Interim Measures for the Administration of Carbon Emission Trading to standardize the construction of a national carbon emissions trading market. In December 2020, the Ministry of Ecology and Environment (MEE) promulgated the Administrative Measures for Carbon Emission Trading (Trial) to regulate carbon emission trading and related activities across the country. Compared with the above-mentioned departmental regulations, the "Regulations" are higher-level administrative regulations, and in terms of institutional content, on the basis of fully absorbing and drawing on the content of existing regulations, combined with the commitments and work arrangements of the Party Central Committee and the State Council on the national goal of carbon peak and carbon neutrality, and focusing on the effective control and reduction of greenhouse gas emissions, which is the focus of carbon peak and carbon neutrality, the trading and related activities of the national carbon emission trading market have put forward clearer management requirements.

Clearly declare the national goal of carbon peak and carbon neutrality

Achieving carbon peak and carbon neutrality is not only a major declaration made at the national level, but also an important embodiment of taking the initiative to fulfill international obligations and assume the responsibilities of a major country, as well as a broad and profound economic and social change. On the one hand, the national goal of carbon peak and carbon neutrality can be clearly declared through legislation, and the major decisions and arrangements of the Party Central Committee and the State Council on carbon peak and carbon neutrality can be implemented.

Implement the requirements of "actively and steadily promoting carbon peak and carbon neutrality".

The report of the 20th National Congress of the Communist Party of China proposed to "actively and steadily promote carbon peak and carbon neutrality". By improving the carbon emission trading market mechanism, greenhouse gas emissions can be effectively controlled and reduced, reflecting China's determination to actively promote the goal of carbon peak and carbon neutrality, promote green and low-carbon economic and social development, and participate in the world's joint response to climate change. Due to China's national conditions, natural resources and characteristics of industrialization stage as a developing country, it is also necessary to link the promotion of carbon peak and carbon neutrality with China's ecological environment governance and economic and social development, and carry out it in a planned and step-by-step manner. On the one hand, it can adapt to the current situation of China's economic and social development, and consider economic and social development factors in the process of formulating and implementing the carbon emission trading system; on the other hand, it can implement the spirit of the 20th National Congress of the Communist Party of China and implement the requirements of "actively and steadily promoting carbon peak and carbon neutrality".

Clearly regulate the quality management of carbon emission data

True and accurate carbon emission data is the basis for the good operation of the carbon emission trading market. After the establishment of the national unified carbon emission trading market in 2021, the overall operation is relatively stable, but the problem of carbon emission data fraud is more prominent.

In view of the data quality management in the practice of carbon emission trading, the Regulations further stipulate the responsibilities of technical service institutions and the regulatory responsibilities of regulatory authorities, in addition to stipulating the obligation of key emitting enterprises to truthfully report carbon emission data, the obligation to keep the original records of data and the management ledger and related legal responsibilities. The Regulations strengthen the supervision and management of the quality of carbon emission data by clearly stipulating the obligations and responsibilities of key emitting entities, regulatory authorities, third-party institutions and other entities, which is conducive to ensuring the smooth operation of the national carbon emission trading market.

The author is a professor at the Law School of Chinese University