China strengthens state control on carbon emissions trading, cracks down on data fabrication with new regulation
- Existing regulations make it difficult to regulate trading activities, ensure data quality and punish illegal acts, Ministry of Ecology and Environment says
- New regulation also toughens up penalties for emissions data fabrication
China has tightened regulations governing its national carbon trading market, as it seeks to extend the market mechanism, which has been designed to reduce greenhouse gas emissions, to more sectors of its economy.
The State Council, China’s cabinet, released an interim regulation with several provisions for the management of carbon emissions trading signed by Premier Li Qiang over the weekend. The regulation, which strengthens state control and cracks down on emissions data fabrication, will be effective from May 1.
The regulation provides a legal framework for the operation of China’s national Emissions Trading Scheme (ETS).
“Previously, there were no laws or administrative regulations for the management of carbon emissions trading in China,” the Ministry of Ecology and Environment (MEE) said in a statement published on its website on Sunday.
“The operation and management of the national carbon emissions trading market based on existing regulations had lower legislative levels and lacked authority, making it difficult to regulate trading activities, ensure data quality and punish illegal acts.”