The State Council of China has approved a new set of regulations aimed at streamlining the nation's emissions trading systems (ETS). The forthcoming ‘Interim Regulations on the Management of Carbon Emissions Trading’ is poised to address crucial aspects, such as defining the scope of the national carbon market, identifying key emission contributors, allocating emissions allowances, ensuring data quality, and regulating trading operations.
Landscape view of Stone Forest in China.
This development marks a pivotal step before the anticipated relaunch of the emissions trading programme, following the Ministry of Ecology and Environment's unveiling of methodologies for quantifying net emission reductions or removals in late 2023. These methodologies span various sectors, including forestation, solar thermal power, offshore wind power generation, and mangrove preservation.
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Despite officially launching in 2021 and encompassing a staggering 4.5 billion tonnes of carbon emissions annually from the power sector, China's carbon market has faced challenges due to regional differences in laws and regulations. The lack of synchronisation has impeded the establishment of common standards, hindering transparency.
Addressing these concerns, the Interim Regulations propose the integration of regional markets into the national market, discouraging the establishment of additional regional markets. Zhou Di, a technology and standards expert, emphasises that the regulations aim to ‘clarify the basic principles and management requirements of carbon emissions trading.’
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As China takes this stride towards a more unified and transparent carbon market, it remains to be seen whether the provision against establishing new regional markets will be retained in the officially approved version. This move aligns with global efforts towards environmental stewardship, presenting a promising outlook for China's nature-oriented initiatives.
In line with our overarching vision, DGB Group proudly takes a leading role in advocating for the profound influence inherent in high-calibre nature-based solutions focused on preserving and revitalising our invaluable natural surroundings. Our dedication centres on driving innovative initiatives in reforestation, community-based agroforestry, biodiversity restoration, and land revitalisation, all aimed at creating a tangible and positive influence. We remain committed to empowering businesses, investors, and individuals to actively contribute to nature conservation by participating in the carbon market.
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