China’s environment ministry slams firms for falsifying carbon data
- Charges include ‘tampering with and forging test reports’, ‘making false coal samples’, and ‘writing distorted and inaccurate conclusions’
- The country’s emissions trading scheme launched last year, but transparency and accuracy of data remain a big concern for Beijing and market participants
The findings published on Monday follow a campaign launched by the Ministry of Ecology and Environment in October-December last year aimed at ascertaining the accuracy of carbon emission verification reports submitted across the country.
“Accurate and reliable data is the lifeline for the effective and standardised operation of the carbon emissions trading market,” the ministry said in a statement on Monday.
China, the world’s biggest greenhouse gas emitter, put its repeatedly delayed national emissions trading scheme (ETS) into operation in July last year. But the transparency and accuracy of emissions data remain a big concern for Beijing as well as the market’s participants.
Data verification firm Zhongtan Nengtou Tech Co was charged with “making false coal samples” and “tampering with and forging test reports”, the ministry said. A second firm, Liaoning Dongmei Testing and Analysis Research Institute, was also charged with tampering with test reports.
Two other companies, SinoCarbon Innovation & Investment Co and Qingdao Xinuo Renewable Co, were separately charged with “writing distorted and inaccurate conclusions”, the ministry said.
In a statement, SinoCarbon said “SinoCarbon has always been adhering to the principle that data quality is the lifeline of the healthy operation of the carbon market. We will resolutely support the MEE to crackdown on data fraud...and support further strengthening of data disclosure,” it said
Reuters could not immediately reach the other three companies by telephone.
The ministry also said it would urge local environment bureaus to continue investigating the four firms and would further strengthen the supervision and management of carbon data verification companies.
Turnover of China’s carbon trading scheme to reach US$15 billion in 2030
China’s ETS currently includes about 2,000 enterprises in the power sector, which emit close to 4.5 billion tonnes of carbon dioxide each year, or 40 per cent of the country’s total.
The government is considering slashing the carbon emission allowances to power utilities to avoid a market surplus, and it is also expected to widen market coverage to include emitters from sectors such as steelmaking.
