China carbon pricing newsletter

China plans to address much of their emissions by building a national carbon market. In this bimonthly newsletter from EDF’s China Program, we bring you first-hand news and insightful analysis into the construction of what will become the largest national carbon emissions trading system, or ETS, in the world.

Archives

• Issue 27: China Will Submit its 2035 Goals to Cover All Greenhouse Gases. [PDF]

  November 2024

  The UNFCCC COP 29 was held in Azerbaijan in November, where China announced that it will submit its 2035 nationally determined contributions (NDCs) that are economy-wide and cover all greenhouse gases. Prior to COP 29, China presented the annual report on China’s Policies and Actions for Addressing Climate Change (2024), highlighting its progress and achievements during 2023. China also passed its first-ever energy law, coordinating energy development for green transition.

• Issue 26: The Expansion of China’s National Carbon Market is Officially Announced. [PDF]

  September 2024

  The Minister of the Ministry of Ecology and Environment (MEE) announced that its national ETS to include the iron and steel, cement, and aluminum sectors by 2024. This expansion will increase its coverage of the country’s emissions from 40% to 60%. China also released its state-level green transition guidelines and a workplan for establishing its dual carbon control mechanism, where China’s carbon market is poised to play an important role. The first batch of CCER projects is under public consultation for registration.

• Issue 25: Latest Progress Report of China’s National Carbon Market was Released. [PDF]

  July 2024

  In July, China underscored the importance of developing carbon markets and released the latest progress report of its national carbon market. The draft allocation plan for power sector in the upcoming compliance cycle was released with several major changes in design elements for improvement. CCER program has witnessed the release of key parameters for calculating emissions reductions, the second batch of draft project methodologies, and more specific rules on validation and verification bodies.

• Issue 24: Progress is made on Improving MRV system and Enabling Sectoral Expansion. [PDF]

  May 2024

  This newsletter presents a summary of policy advancements and recent progress in both the national ETS and regional carbon markets. Additionally, we highlight our endeavors to bolster the expansion of China's ETS coverage and design voluntary market mechanisms.

• Issue 23: Top-level legislation of China’s national ETS has been released. [PDF]

  February/March2024

  China’s State Council released the Interim Regulations on Carbon Emission Trading, enhancing the national ETS framework. Simultaneously, the Ministry of Ecology and Environment drafted MRV Guidelines for aluminum smelting, advancing ETS expansion. Premier Li Qiang emphasized 2024 ETS expansion and green finance improvements during the National People’s Congress. China also planned to establish a carbon footprint management system in the Government Work Report.

• Issue 22: Important progress has been made in the development of the State Council-level carbon market management decree. [PDF]

  January 2024

  China's national ETS undergoes major updates in 2024, with the State Council adopting new regulations to strengthen its legal effectiveness. The national voluntary emission reduction market is officially launched on January 22nd, 2024. The carbon market is recognized by the CPC Central Committee and State Council for promoting green development.

• Issue 21: China carbon pricing newsletter 2023 highlights [PDF]

  December 2023

  In this special edition, we summarized the most significant carbon pricing policies and EDF’s contribution to the national ETS, the national voluntary carbon market, and climate finance, of the year 2023.

• Issue 20: China’s suspended national voluntary carbon market has been officially relaunched [PDF]

  October/November 2023

  The Ministry of Ecology and Environment improved the institutional framework of China’s long-suspended voluntary carbon market by releasing several top-level documents and establishing registration and trading institutions. Besides, China also made progress in developing carbon certification and footprint systems.

• Issue 19: The national ETS has steadily progressed in the issuance of allowances and compliance efforts for the years 2021 and 2022 [PDF]

  August/September 2023

  The Ministry of Ecology and Environment updated compliance rules in the national ETS. Furthermore, progress has been made in the relaunch of the national voluntary emission reduction market. Additionally, the financial authorities expressed their commitment to continue supporting the development of green finance in China.

• Issue 18: China’s Voluntary Carbon Market Could Relaunch in 2023 [PDF]

  June/July 2023

  The Voluntary Carbon Market in China is set to relaunch in 2023, as the necessary infrastructure has been largely completed and the Ministry of Ecology and Environment is actively seeking methodological suggestions for voluntary emission reduction projects. Additionally, public opinions are being collected on the Administration Measures for Voluntary Greenhouse Gas Emission Reduction Trading (Trial Implementation).

• Issue 17: China resumes active international cooperation in addressing climate change [PDF]

  April/May 2023

  Since lifting the pandemic control measures, China has gradually resumed close cooperation and exchanges with the world. China has hosted several heads of state from France, Brazil, and Central Asia countries since April, addressing climate change as an important topic of mutual concern. In the jointly signed statements, low carbon technology, green finance, international climate governance are mentioned, which highlight the key areas in the future cooperation.

• Issue 16: Two sessions held in Beijing set 2023 Goals on addressing climate change, and Allowance Allocation Plan has been determined for the national ETS second compliance period [PDF]

  March 2023

  The achievements of climate-related works in 2022 were summarized during Two Sessions, and the priorities to address climate change in 2023 have also been clarified. Meanwhile, the National ETS also made several major progresses, including the issuance of the allocation plan for the second compliance period, and other documents which aim to improve data quality of covered entities. Also, EDF published three research reports about the developments of China voluntary emission reduction program and climate-related information disclosures.

• Issue 15: Progress in policies promotes carbon peaking and low carbon transition [PDF]

  December 2022

  Recently, China has made tremendous progress in releasing regional and national policies to promote carbon peaking and low carbon transition. Meanwhile, the Ministry of Ecology and Environment published a report to introduce the national carbon market performance of the first compliance cycle, and updated guidelines for monitoring, reporting and verification of GHG emissions. Plus, EDF has supported the establishment of the official Help platform for the national ETS and further improvement of the voluntary emission reduction market’s infrastructure; we also co-host a webinar to discuss the development of climate investment and financing in China.

• Issue 14: The 20th National Congress of CPC constructed the top-level design for climate policies in China [PDF]

  November 2022

  On the 20th National Congress of CPC, President Xi Jinping announced measures to make future developments of China align with the Dual Carbon targets. After that, documents and working arrangements were released to promote the low carbon transition and the national ETS. During the UNFCCC COP 27, EDF supported the MEE in organizing China Pavilion to discuss the development and outlook of China carbon market.

• Issue 13: The First Anniversary of China's National ETS [PDF]

  October 2022

  This July has witnessed the first anniversary of China’s national emission trading system (ETS), and the first compliance cycle ended with a 99.5% compliance rate of 2,162 power generation entities. By the end of August this year, about 195 million tonnes of China Emissions Allowances (CEA) were traded, with a total trading value of about CNY 8.5 billion.

• Issue 12: Enhance Data Quality of the National ETS [PDF]

  June 2022

  To enhance the data quality of the national carbon market, MEE issued the Notice on the Implementation of GHG Data Reporting in 2022. Specific data of CCER was first released in a webinar focused on high-quality voluntary carbon market organized by EDF.

• First Compliance Period of China's National ETS Closes [PDF]

  January 2022

  As we entered into 2022, we saw the first compliance period close successfully with 99.5% allowance obligations fulfilled.

• Special Edition: The World's Biggest Carbon Market Launches Online Trading! [PDF]

  August 2021

  China’s National ETS kicked off the first online trade on July 16th.

• Issue 10: Unintended Delay Doesn’t Encumber Building Effective ETS [PDF]

  July 2021

  Though experiencing an unintended delay, the overall momentum of building a more effective ETS is getting stronger and stronger.

• Issue 9: Have Your Say on China's Interim Regulations on the Administration of Carbon Emissions Trading [PDF]

  March 2021

  China’s Ministry of Ecology and Environment has released a draft regulation for public consultation, which aims to regulate the national ETS at a higher level.

• Issue 8: New Carbon Trading Rules Take Effect as China Prepares for 14th Five-Year Plan [PDF]

  February 2021

  The interim rules for carbon emissions trading management came into effect Feb 1.

• Issue 7: China's National ETS Open for Business [PDF]

  January 2021

  The China National Emissions Trading Scheme (ETS) is now open for business after the system’s core pieces have been put in place.

• Issue 6: Have Your Say on the Allowance Allocation for China’s National Emissions Trading System [PDF]

  December 2020

  MEE released a draft policy on the allocation of carbon emissions allowances within China’s national ETS for public consultation, including the coverage of a total of 2,267 power plants in its first phase.

• Issue 5: Have Your Say on Measures for China’s National Emissions Trading System [PDF]

  November 2020

  The Chinese issued two new measures (draft for comments) in November, which will be the foundation for the upcoming National Emissions Trading System.

• Issue 4: The National ETS in China's 14th Five Year Plan and EDF's efforts on promoting market linkage [PDF]

  September 2020

  As China aims for carbon neutrality by 2060, the ETS will play a pivotal role. This issue covers the latest on the market and EDF’s efforts on promoting market linkage.

• Issue 3: EDF promotes power sector’s low carbon transition [PDF]

  July 2020

  Efforts to promote the low carbon transition of China’s power sector in the 14th Five-Year-Plan, as well as the latest progress of the national ETS and pilots markets.

• Issue 2: Latest research findings on CCERs [PDF]

  May 2020

  Latest analytical report on the ETS's supplementary mechanism, which can help achieve low-cost emission reductions, and progress on the national ETS as well as pilot markets.

• Issue 1: Big events of national ETS in 2019 [PDF]

  March 2020

  Highlights the Climate Change and Emissions Reduction Task Force's role in guiding the construction of the national ETS since its formation in 2007, and more.