The Chinese Ministry of Ecology and Environment (MEE) has launched a consultation plan for a national emissions trading scheme (ETS). Under the new draft rules, participation in the ETS will be mandatory for companies above a cut-off point of 26,000 tCO2eq/year, equivalent to a consumption of 10,000 tce/year. Companies will have to issue emissions reports, subject to information disclosure and verification requirements. The MEE will determine a methodology and standards to allocate carbon emissions allowances. In addition, the Chinese authorities will step up and operate a registration and settlement system for carbon emissions permits.
China plans to launch its carbon ETS between 2021 and 2025. The country previously expected to launch the first phase of the ETS, only covering the power sector, by the end of 2020. This scheme has been on the works for several years. China started with seven regional trading platforms in 2013 and launched a national ETS in December 2017 but had to work on legal and technical infrastructure construction before starting trading. In August 2020, pilot ETS in seven Chinese regions covered nearly 3,000 industrial emitters and traded 406 MtCO2eq of greenhouse gas (GHG) emissions.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.