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

Ministry of Ecology and Environment (MEE) Released Administrative Measure for National ETS (Trial)

On January 05, 2021, the MEE released the interim administrative measure for the national ETS of China, which came into force on February 01, 2021.

According to the trial measure, the MEE is responsible for constructing the national ETS including defining the coverage of greenhouse gases (GHG) and scopes, building registration and trading systems, formalizing technical guidelines, and supervising the trading actives jointly with other authorities. It clarifies that enterprises covered by the national ETS will not participate in any regional pilot ETS anymore. At the beginning allowances  will mainly be allocated for free, with auctioning being gradually introduced in the future. Allowances are initially the only trading product but other products might be introduced later. Enterprises shall submit a GHG emission report each year before March 31. The CCER used for annual payment shall not exceed 5% of the actual annual emissions, and must be derived from renewable energy, methane utilization and carbon sink voluntary emission reduction projects within China. Finally, the supervision responsibilities within the Ecology and Environment authority system and penalties for non-compliance are also defined.

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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.

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