China to Fines Companies That Pass Their Carbon Quota

The Ministry of Ecology and Environment of China published a regulation on carbon emissions trading, sharing the carbon emission quota distribution plans and the list of major emission units. Thus, while the first applications for the electricity generation sector in China's national carbon market officially started on January 1, 2021, carbon emission quotas were determined for 2 thousand 225 electricity generation companies.

Li Gao, Director of the Department for Combating Climate Change at the Ministry of Ecology and Environment, noted that the regulation regulates national carbon emission trade and related activities, outlining the rights, obligations and responsibilities of authorities and market actors at different levels. Li stated that with the aforementioned regulation, critical points in the functioning of the national carbon market and the requirements of related studies are also determined.

It was stated that the companies with an emission quota determined by the regulation were electricity generation companies with an annual carbon dioxide emission of 26 thousand tons. Pointing out that quotas are the fundamental stage of carbon emissions trading, Li Gao stated that businesses that perform well will be rewarded, and those that perform poorly will be punished.

Underlining that the role of enterprises in emission reduction is very important, the official stated that for the first time in China, the responsibility of reducing greenhouse gas emissions at the national level was distributed to the enterprises.

Stating that the industries covered by the carbon market will be expanded gradually, Li added that the stable and effective functioning of the national carbon market will ensure a healthy and sustainable development, and that the market mechanism will work to play an important role in the realization of the carbon neutral vision with the aim of reaching the peak in carbon dioxide emissions before 2030. China had previously announced its targets to reach a peak in carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

Source: China International Radio

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