The carbon market is an important policy tool for actively responding to climate change and accelerating the comprehensive green transformation of economic and social development through market mechanisms. At present, China has established a national carbon emission trading market where key emission units fulfill their mandatory emission reduction responsibilities and a national voluntary greenhouse gas emission reduction trading market that encourages society to voluntarily reduce emissions. To promote the establishment of a more effective, dynamic and internationally influential national carbon market, with the approval of the Central Committee of the Communist Party of China and The State Council, the following opinions are hereby put forward.
I. General Requirements
Adhere to the basic positioning of the carbon market as a policy tool for controlling greenhouse gas emissions, accelerate the construction of a unified national carbon market, expand the scope of implementation and the number of participants in a planned and step-by-step manner, create a fairer, more open and transparent market environment, strive to achieve the optimization of carbon emission resource allocation efficiency and the maximization of benefits, promote the in-depth transformation of traditional industries, and cultivate and develop new quality productive forces Stimulate the internal driving force for green and low-carbon development throughout society, and provide important support for actively and steadily advancing carbon peaking and carbon neutrality and building a beautiful China.
The main objective is: by 2027, the national carbon emission trading market will basically cover the major emission industries in the industrial sector, and the national voluntary greenhouse gas emission reduction trading market will achieve full coverage of key areas. By 2030, a national carbon emission trading market based on total quota control and combining free and paid allocation will be basically established. A national voluntary greenhouse gas emission reduction trading market that is honest and transparent, with unified methods, wide participation and in line with international standards will be built. A carbon pricing mechanism with obvious emission reduction effects, a sound rule system and reasonable price levels will be formed.
Second, accelerate the establishment of a national carbon emissions trading market
(1) Expand the coverage of the national carbon emissions trading market. Based on the development status of the industry, contributions to carbon reduction and pollution control, data quality foundation, and carbon emission characteristics, etc., the coverage of industries and the types of greenhouse gases should be expanded in an orderly manner.
(2) Improve the management system for carbon emission quotas. Establish a carbon emission quota management system with clear expectations, openness and transparency, and maintain policy stability and continuity. Taking into account economic and social development, industry characteristics, and the cost of low-carbon transformation, the medium and long-term carbon emission quota control targets for the market should be clearly defined. In accordance with the national greenhouse gas emission control targets and the dual control requirements for carbon emissions, we should properly handle the relationships with energy security, the security of industrial and supply chains, and people's livelihood security, scientifically set the total amount of quotas, and gradually shift from intensity control to total amount control. By 2027, priority will be given to implementing quota total control for industries with relatively stable total carbon emissions. We will steadily implement a combined free and paid carbon emission quota allocation system and orderly increase the proportion of paid allocation. Establish a quota reserve and market regulation mechanism to balance market supply and demand and enhance market stability and liquidity. Reasonably determine the proportion of carbon emission quota settlement offset by certified voluntary emission reductions.
(3) Strengthen guidance and supervision over the pilot markets for carbon emission trading. Coordinate well the national carbon emissions trading market and the carbon markets piloted by relevant localities. The existing pilot markets for carbon emission trading should be constructed and operated in a standardized manner in accordance with relevant requirements to facilitate the green and low-carbon transformation of regions. Encourage the pilot markets for carbon emissions trading to take the lead in trials in terms of expanding coverage, improving market regulation mechanisms, innovating regulatory means, and developing carbon finance in a healthy and orderly manner, so as to explore experience for the construction of the national carbon emissions trading market. Establish a regular assessment and exit mechanism, and no new local or regional carbon emission trading markets will be built.
Iii. Actively develop the national voluntary greenhouse gas emission reduction trading market
(4) Accelerate the construction of the voluntary emission reduction trading market. Establish a scientific and complete methodology system, accelerate the development of methodologies in key areas with significant sustainable development benefits, high social expectations, and both social and ecological benefits, and effectively serve social voluntary emission reduction and the realization of ecological product value. Strengthen the full-chain management of voluntary emission reduction projects, including their development, approval, implementation and verification of emission reduction volumes. Project owners, review and verification institutions should adhere to the principle of integrity, strictly implement the committed matters, and proactively accept social supervision. Strengthen the overall management of national carbon emission reduction resources and standardize all kinds of voluntary emission reduction trading activities.
(V) Actively promote the application of certified voluntary emission reductions. Advocate and promote the active use of certified voluntary emission reductions by Party and government organs, enterprises, social organizations, etc. to offset carbon emissions in aspects such as green supply chain management, organizing large-scale events, fulfilling social responsibilities, and green and low-carbon living. Party and government organs at all levels and state-owned enterprises should play a leading role. Improve the rules for offsetting verified voluntary emission reductions, enhance international recognition, and actively serve the international compliance of relevant industry enterprises and the carbon neutrality of their products.
Fourth, focus on enhancing the vitality of the carbon market
(6) Enrich trading products. Steadily and prudently promote financial institutions to explore the development of green financial products and services related to carbon emission rights and certified voluntary emission reductions, and increase support for greenhouse gas emission reduction. Establish and improve policies and systems such as carbon pledge and carbon repurchase, standardize financial activities related to carbon emission rights, and expand channels for enterprises to manage carbon assets. Establish and improve the carbon pricing mechanism with the national carbon market as the main body, and make full use of the price discovery function of the national carbon market to provide effective price signals for financial support of green and low-carbon development.
(7) Expand the trading entities. Support banks and other financial institutions in conducting carbon pledge financing business in a standardized manner, steadily promote the participation of financial institutions that meet the requirements in the national carbon market trading under the premise of compliance with laws and regulations and controllable risks, and introduce other non-compliance entities at an appropriate time. The national voluntary greenhouse gas emission reduction trading market is gradually introducing qualified natural persons to participate in trading.
(8) Strengthen market transaction supervision. Standardize the release of major policy information, improve the risk prevention, early warning and handling procedures for market transactions, carry out tracking and assessment of national carbon market prices, and promote the formation of reasonable transaction prices. Strengthen the supervision of trading activities and crack down severely on behaviors that disrupt market order and manipulate the market. Establish a risk assessment, early warning and management system for the compliance of key emission units to prevent compliance risks. Strengthen the supervision and management of carbon financial activities, guide financial institutions to provide financial services in accordance with market-oriented and law-based principles, and hold the bottom line of not allowing systemic financial risks to occur.
V. Comprehensively strengthen the capacity building of the carbon market
(IX) Improve the management system and support framework. Establish and improve a management system that is in line with the development stage of the national carbon market, conducive to strengthening unified supervision and management, with clear rights and responsibilities and efficient operation. Strengthen the capacity building of the national carbon market management. Promote the construction of a full-chain, digital and intelligent national carbon market management system, registration system and trading system, strengthen service functions and ensure data security.
(10) Strengthen the management of carbon emission accounting and reporting. Improve the reporting system for greenhouse gas emissions by enterprises. In conjunction with the construction of the national carbon market, accelerate the revision of the guidelines for greenhouse gas accounting and reporting of key industry enterprises, and convert them into national standards when conditions are ripe. Implement classified management of carbon emission accounting, improve the accounting system based on the emission factor method, and explore the implementation of carbon emission accounting based on automatic monitoring. Strengthen the allocation, use and management of key carbon emission measuring instruments, conduct verification or calibration in accordance with the law, formulate metrological technical specifications, and carry out carbon emission metrological reviews. Implement monthly evidence storage for key parameters of key emission units.
(11) Strictly regulate carbon emission verification. Improve the technical norms for verification in key industries, clarify the key points and requirements of verification, and standardize the verification process. Promote the verification and verification institutions to strictly follow the principles of objectivity and independence, honesty and trustworthiness, fairness and impartiality, and professionalism and rigor, to conduct comprehensive verification and examination of carbon emissions, and ensure the accuracy and credibility of the verification and verification results. For key emission units that consistently maintain high-quality carbon emission reports, verification can be simplified in light of their actual conditions.
(12) Strengthen the full-process supervision of carbon emission data quality. We should strengthen the primary responsibility of key emission units for carbon emission accounting and reporting, and encourage enterprises to establish and improve internal management systems for carbon emission data quality. Local ecological environment and market supervision departments, in conjunction with relevant departments, should strengthen the daily supervision and management of carbon emission data, and comprehensively apply big data, blockchain, Internet of Things and other technologies to enhance the level of supervision. Strengthen the investigation and punishment of illegal and irregular behaviors, and severely crack down on acts of fraud and deception.
(13) Strengthen the supervision of technical service institutions. Implement a certification body qualification management system for the verification institutions of the national carbon emission trading market, clearly defining the access conditions, behavioral norms and exit mechanisms. Strengthen the management of carbon emission-related inspection and testing institutions and establish a mechanism to remove non-compliant institutions. Actively cultivate technical service industries such as consulting services, inspection and testing, and certification and verification, conduct regular evaluations, promote the healthy development of the third-party technical service market, and create more international professional service institutions. Encourage technical service institutions to strengthen self-discipline management within the industry.
(14) Improve the information disclosure system. Key emission units, registration and record-keeping institutions, trading institutions, technical service institutions, financial institutions, etc. shall, in accordance with relevant requirements, promptly disclose information related to emissions, compliance, trading, pledge, etc., and accept social supervision. Establish a data sharing mechanism among departments related to the carbon market. Strengthen credit supervision and management of key emission units, technical service institutions and financial institutions in accordance with the law.
Six. Strengthen organizational and implementation guarantees
(15) Strengthen organizational leadership. Under the centralized and unified leadership of the Central Committee of the Communist Party of China, all regions and relevant departments should, in light of their actual conditions, earnestly implement this opinion. Local Party committees and governments at all levels should strengthen organizational leadership, actively promote green and low-carbon transformation, enhance policy support for the construction and operation of the carbon market, intensify supervision and management over key emission units, and earnestly carry out work such as quota issuance, quota settlement, and data quality management for key emission units in their respective regions. The Ministry of Ecology and Environment should strengthen the overall coordination, organization and implementation, as well as tracking and assessment of the carbon market construction, and systematically promote the implementation of tasks. Relevant departments should, in accordance with their respective responsibilities, enhance coordination and cooperation as well as supervision and guidance to form a working synergy. Major matters should be promptly reported to the Central Committee of the Communist Party of China and The State Council for instructions in accordance with the prescribed procedures.
(16) Strengthen policy and legal support. Research and improve relevant laws and regulations to provide legal support for the construction of the carbon market. Conduct research on relevant legislation for the management of voluntary greenhouse gas emission reduction trading. We will improve the long-term mechanism for the connection between administrative law enforcement and criminal justice, carry out public interest litigation in relevant fields in accordance with the law, and intensify joint efforts to crack down on illegal and criminal activities in the carbon market. Improve the system of judicial rules and support administrative authorities in performing their administrative regulatory duties over the carbon market in accordance with the law. Strengthen policy coordination and institutional connection between the national carbon market and market-based mechanisms such as green electricity and green certificates. Formulate the registration and trading fee rules for the national carbon market. Improve the fund clearing mechanism of the national carbon market and enhance the efficiency of fund clearing. Reduce the institutional transaction costs of the carbon market.
(17) Deepen international exchanges and cooperation. Actively participate in the formulation of carbon market mechanism rules related to the Paris Agreement on climate change, and promote a global green and low-carbon just transition. Strengthen international consultation and dialogue and exchanges. Strengthen exchanges and cooperation in the carbon market field and promote international mutual recognition of technologies, methods, standards and data. Publicize the practices and experiences of China's carbon market construction through multiple channels.
