What is China doing in the fight against climate change? China has committed to peak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060. Since China officially announced its commitment to the world in September 2020, several supportive regulations and actions have been published and rolled out to achieve the goal.

Carbon emissions regulations

Administrative measures for carbon emissionstrading (Trial) was adopted by China’s Ministry of Ecology and Environment (MEE) on December 25th, 2020 and was officially promulgated to come into effect as of February 1st, 2021.

The administrative measures apply to carbon emissions trading and relevant activities in China, including the allocation and payment of emissions allowances, the registration, trading and settlement of emissions rights, and reporting and supervision of greenhouse gases as well as the administration of these activities. A national carbon emissions allowances registration system and a national carbon emissions allowances trading system shall be established in accordance with the law.

Furthermore, on March 30th, 2021 the MEE issued Interim Regulation on the Management of Carbon Emissions Trading (Revised Draft) for public consultation which ended by April 30th, 2021.

Moreover, three administrative rules of carbon emissions trading, registration and settlement were released on May 17th, 2021 and took effect immediately. These administrative rules were issued to further standardize and regulate the carbon emissions registration, trading, and settlement activities, and to protect the lawful rights and interests of all participants in the national carbon emissions trading market.

Carbon emissions actions

According to the MEE announcement on July 27th, 2021, China will organize seven provinces to carry out pilot projects to assess carbon emissions in key industries. One of the goals is to gain a general understanding of the carbon emissions level and the reduction potentiality in the key industries before end of June 2022. The key industrial sectors where the pilot projects shall take place involve electric power, steel, construction materials, non-ferrous metals, petrochemical, chemical and coal chemical industries.

Besides, the first compliance period of the carbon emissions allowances payment during 2019-2020 for power generation industry was completed in December 2021.

Compliance suggestions

There are different challenges of doing business in China, regulatory compliance is a critical point foreign companies should not neglect. With the support of Anber Consulting, we will overcome these barriers together with you. To learn more about Chinese laws and regulations, please feel free to send me an email at siming.sun@anber-consulting.com.