Li Qiang, Premier of the State Council, recently signed a State Council order and promulgated the Interim Regulations on the Administration of Carbon Emission Trading (hereinafter referred to as the Regulations), which will come into force on May 1, 2024.

Carbon emission trading is an important policy tool to control and reduce greenhouse gas emissions such as carbon dioxide through the market mechanism and help actively and steadily promote carbon peaking and carbon neutrality. It is of great significance to formulate special administrative regulations to provide a clear legal basis for the operation and management of the national carbon emission trading market, and to ensure and promote its healthy development. The Regulations summarize practical experience, adhere to the whole process management, and focus on building a basic institutional framework to ensure the full play of carbon emission trading policy functions. The Regulation has 33 articles, mainly including the following.

First, adhere to the leadership of the Party. To clarify the management of carbon emissions trading and related activities, we should adhere to the leadership of the Communist Party of China, and implement the party and national lines, policies, decisions and deployment.

The second is to clarify the supervision and management system. It is stipulated that the competent ecological environment department of the State Council shall be responsible for the supervision and administration of carbon emission trading and related activities, and the relevant departments of the State Council shall be responsible for the supervision and administration according to the division of responsibilities.

Third, build a basic institutional framework for carbon emissions trading management. Clarify the legal status and responsibilities of national carbon emission rights registration institutions and trading institutions, the coverage of carbon emission rights trading, trading products, trading subjects and trading methods, the determination of key emission units, carbon emission quota allocation, the preparation and verification of annual greenhouse gas emission reports, and carbon emission quota clearance and market trading.

Fourth, prevent and punish carbon emission data fraud. It mainly makes clear regulations on strengthening the main responsibility of key emission units, strengthening the management of technical service institutions, strengthening supervision and inspection, and increasing punishment.