Ensuring the healthy development of the national carbon market (People's Daily)

Carbon emission trading is an important policy tool to control and reduce greenhouse gas emissions such as carbon dioxide through market mechanisms, and to help actively and steadily promote carbon peak and carbon neutrality.

A few days ago, the State Council promulgated the Interim Regulations on the Administration of Carbon Emission Trading (hereinafter referred to as the "Regulations"), which will come into force on May 1, 2024, providing a clear legal basis for the operation and management of the national carbon emission trading market and ensuring the full play of the function of the carbon emission trading policy.

Provide a clear legal basis for the operation and management of the national carbon market

In recent years, the construction of China's carbon emission trading market has been steadily promoted. In October 2011, Beijing, Tianjin, Shanghai, Chongqing, Guangdong, Hubei, Shenzhen and other places launched pilot work on local carbon emission trading markets, and in December 2017, the construction of national carbon markets was launched.

Since the official launch of the national carbon market in July 2021, it has been running smoothly, covering an average of about 5.1 billion tons of carbon dioxide emissions per year, accounting for more than 40% of the country's total emissions. By the end of 2023, a total of 2,257 power generation companies have been included in the national carbon market, with a cumulative turnover of about 440 million tons and a turnover of about 24.9 billion yuan.

"At the same time, the shortcomings in the construction of the national carbon market system are becoming increasingly obvious. Previously, there were no laws and administrative regulations on the management of carbon emission trading in China, and the operation and management of the national carbon market were implemented in accordance with the rules and documents of the relevant departments of the State Council. The relevant person in charge of the Ministry of Ecology and Environment said that it is urgent to formulate special administrative regulations to provide a clear legal basis for the operation and management of the national carbon market, and to ensure and promote its healthy development.

The report of the 20th National Congress of the Communist Party of China proposed to improve the carbon emission market trading system. The person in charge said that the formulation of the "Regulations" is a specific measure to implement the spirit of the 20th National Congress of the Communist Party of China, and it is also an objective need for the construction and development of China's carbon emission trading market.

"Compared with departmental regulations, the "Regulations" are higher-level administrative regulations, combined with China's carbon peak and carbon neutrality goal vision and work deployment, focusing on the effective control and reduction of greenhouse gas emissions, and put forward clearer management requirements for the trading and related activities of the national carbon market. Zhu Xiao, a professor at the Law School of Chinese People's University, said.

Strengthen the supervision of the whole process of carbon emission trading and related activities

The construction of the carbon market is a major institutional innovation and a complex system project, which requires an effective management mechanism, a sound legal system, a reliable trading system, and real emission data.

According to the relevant person in charge of the Ministry of Ecology and Environment, the "Regulations" mainly grasp the following three points in the overall idea: First, summarize practical experience, adhere to the whole process management, cover the main links of carbon emission trading, and avoid system gaps and blind spots. Second, based on the fact that China's carbon emission trading is a new thing and is still being explored, it is important to build a basic institutional framework, maintain the necessary flexibility in the design of relevant systems, and leave room for future development. The third is to adhere to the problem-oriented, focus on improving the system and mechanism, effectively prevent and punish, and ensure the function of the carbon emission trading policy.

Clarifying the supervision and management system is an important aspect of strengthening the management of carbon emission trading. The "Regulations" make it clear that the competent department of ecology and environment of the State Council shall be responsible for the supervision and management of carbon emission trading and related activities, and other relevant departments shall be responsible for the supervision and management of carbon emission trading and related activities in accordance with the division of duties;

In order to improve the efficiency of supervision, the Regulations also stipulate that the competent department of ecology and environment of the State Council shall establish a national carbon emission trading market management platform, strengthen the supervision of the whole process of carbon emission trading and related activities, and achieve information sharing with relevant departments.

According to the relevant person in charge of the Ministry of Ecology and Environment, the "Regulations" have built the basic institutional framework for the management of carbon emission trading from six aspects, including the legal status and responsibilities of registration institutions and trading institutions, the coverage of carbon emission trading, trading products, trading entities and trading methods, the determination of key emitting units, the allocation of carbon emission allowances, the preparation and verification of emission reports, the settlement of carbon emission allowances and market transactions, etc.

The "Regulations" clearly stipulate the key work content and processes such as the determination of the list of key emitting enterprises, emission management, verification, information disclosure, supervision and management, and punishment for violations of laws and regulations, giving clear policy and institutional expectations to all participants in the national carbon market and the public, and improving the level of rule of law management. Xu Huaqing, director of the National Center for Climate Change Strategy and International Cooperation, said.

Strictly implement the data quality management responsibility system

The authenticity of emission data is the basic premise for the normal operation of carbon emission trading and the performance of policy functions. "Comprehensive, accurate and authentic carbon emission data is not only the basis for the expansion of the national carbon market and the increase of market vitality, but also the key factor affecting the effectiveness of the current national carbon market in reducing greenhouse gas emissions. Xu Huaqing said.

Data quality management involves multiple entities such as relevant competent departments at all levels, key emitting entities, and technical service institutions. Xu Huaqing introduced that the "Regulations" strictly implement the data quality management responsibility system, according to the role positioning of different entities in the key links of the national carbon market operation, further rationalize and clarify the data management rights and responsibilities and requirements of relevant competent departments at all levels, key emitting units, technical service institutions and other subjects, and clarify the work coordination mechanism between relevant subjects.

"The Regulations strengthen the supervision and management of the quality of carbon emission data, which is conducive to ensuring the smooth operation of the national carbon emission trading market. Zhu Xiao said.

For violations of laws and regulations related to data quality, the "Regulations" clarify legal responsibilities such as confiscation of illegal gains, fines, reduction of quotas for the next year, orders to suspend production for rectification, cancellation of qualifications, and restrictions on employment. "The administrative penalties have been greatly increased, which will help strengthen the restraint on violations of laws and regulations. Xu Huaqing said.

"There is a lot of work to be done to ensure the smooth implementation and implementation of the Regulations. The relevant person in charge of the Ministry of Ecology and Environment said that it will timely introduce more specific and operational regulations such as supporting regulations, measures and standards; continue to do a good job in the publicity and implementation of the "Regulations" to help the staff of relevant departments, key emitting units, and relevant technical service institutions to better grasp the relevant content; improve the regulatory infrastructure, accelerate the construction of the management platform, improve the level of informatization and intelligence of supervision, and form a joint regulatory force.