**China Introduces New Regulations for Carbon Emissions Trading**
Recently, the “Interim Regulations on the Management of Carbon Emissions Trading” were officially issued in China, marking a significant step in addressing climate change. This new regulation is the country’s first specialized framework for managing carbon emissions trading, establishing a clear system for the carbon market.
China’s carbon market consists of two main markets: mandatory and voluntary. The national carbon emissions trading market, also known as the mandatory carbon market, requires key emission units to control their greenhouse gas emissions by obtaining and trading carbon emission quotas. On the other hand, the national voluntary greenhouse gas emission reduction trading market, or the voluntary carbon market, allows entities to voluntarily reduce emissions and trade verified emission reduction benefits.
The implementation of the carbon market in China began with local pilot projects in seven provinces and cities, including Beijing, Tianjin, Shanghai, and Guangdong. These pilot projects involved over 3,000 companies across various industries such as electricity, steel, and cement. Additionally, the national greenhouse gas voluntary emission reduction trading market was officially launched on January 22 this year, with an impressive transaction volume on the first day.
The new regulations emphasize the importance of both mandatory and voluntary carbon markets, highlighting their complementary nature in achieving emission reduction targets. Key emission units can utilize state-certified voluntary emission reductions to offset a portion of their carbon emission quotas, fostering a balanced and effective carbon trading system.
Zhao Yingmin, Vice Minister of China’s Ministry of Ecology and Environment, emphasized the significance of additionality in the voluntary emission reduction trading market. Projects must demonstrate additional efforts to reduce emissions beyond what is already mandated by regulations, ensuring the credibility and effectiveness of emission reduction activities.
Moving forward, the Ministry of Ecology and Environment is working on expanding the carbon emissions trading market to include more industries, with a focus on power generation, steel, building materials, and other key sectors. By integrating key emission units into the carbon market system, China aims to strengthen carbon emission management and meet the evolving demands of climate change mitigation.
The introduction of these new regulations signifies China’s commitment to combatting climate change and promoting sustainable development. With a clear framework for carbon emissions trading in place, the country is poised to make significant strides in reducing greenhouse gas emissions and achieving its climate goals.
Editor: Yang Haoxian