Sino-German Cooperation
on Biodiversity, Climate and Environment
On behalf of International Climate Initiative (IKI)

MEE Released Administrative Rules on the Trading Platform, Registry and Settlement for National Carbon Market (Trial Version)

On 17 May 2021, the Ministry of Ecology and Environment (MEE) issued three documents expounding the administrative rules regarding the trading platform, registry, and settlements of the country’s national ETS. In the announcement, it nominated Hubei Emission Exchange as responsible for the registry system and Shanghai Energy and Environment Exchange as custodian of the trading system until new institutions for the management of the respective systems are established. As such, both trade centres will be in charge of opening accounts, operating the system, and maintaining it.

The documents are the results of a round of consultations in November 2020. The main aspects of the announcement are:

  • Initially, only enterprises which are covered by the national ETS will be free to open accounts. Other entities are to be allowed as well according to rules which the regulator will announce later on.
  • As of now, only allowances (CEAs) are permissible for trade. The MEE plans to introduce other products in the future.
  • The staff of government authorities, the registry, and the trading platform, as well as verification entities, will be prohibited from opening accounts or trading.
  • Co-clearing banks and related personnel shall not engage in carbon trading activities.
  • A maximum position of allowances will be imposed. Anyone who crosses the set threshold will need to report to the exchange. The maximum holding level will be defined by the exchange.

Read more

More project related news

MEE publishes list of firms that supported data manipulation in the Chinese national ETS during the first compliance period

After July 2021 reports had shown that the technical service company China Carbon Energy Investment and S&T (中碳能投科技有限公司) falsified emission data and supported key enterprises in their effort to manipulate their data of the first compliance cycle, the Ministry of Ecology and Environment (MEE) announced to increase its attention on the quality of emission data.

Read More »