On 30 August 2019 – The Director General of the Department of Climate Change of MEE, Mr. Li Gao, introduced the carbon market construction progress and next steps as well as the future development during the time of the 14th FYP.
Key achievements so far include the official launch in December 2017 and the publication of the ETS construction plan, the issuance of 24 sector-specific reporting guidelines and 13 national standards on carbon emissions verification. In line with the construction plan, ETS legislation, infrastructure construction, capacity building and the establishment of the administrative system are ongoing.
Currently China is accelerating the legislation process for the “Interim Rules for the Administration of Carbon Emissions Trading”, the development of the allocation plan for the national ETS, allocation guidelines for the power generation sector and other relevant MRV regulations for GHG emissions of key emitters. Furthermore, the rules for the administration of the exchange shall be issued in a due time while the work on the national ETS registry system and the trading system are ongoing. New information is expected to be published in the fourth quarter of 2019.
Li Gao reiterated that while in the initial phase the ETS will be limited to the power sector, the MEE is considering to enlarge the scope and introduce other trading products in the future.
During the 14th FYP, the national ETS is expected to operate stably and effectively. The market shall be well regulated, transparent and feature active trading. The coverage and trading products shall be further expanded. Legal regulations, data management and market supervision systems shall be further perfected. Furthermore, while China’s NDC target only considers CO2 emissions, the control of other GHG gases beside CO2 shall be promoted going forward.