Key Features of China National Emissions Trading Scheme (ETS)

  • China ETS Official Start Date: 01 January 2017 (Actual Launch in Mid-2017)
  • The National ETS Regulator: National Development and Reform Commission (NDRC).
  • Provincial ETS Regulators: Provincial Development and Reform Commissions (PDRCs).
  • Sectors Covered: Eight (8) Sectors and Twenty (20) Sub-Sectors covered by the National ETS [LEARN MORE]
  • Threshold for inclusion in the National ETS  = 10,000 tons of standard coal equivalent burned in any year between 2013 and 2015.
  • Emission Caps: NDRC assigns CO2 Emissions Caps to Provinces; and Provincial DRCs assign Caps to Emissions Controlled Companies (“ECCs”).
  • Annual Reporting: ECCs must submit Annual Verified Emissions Monitoring Reports to NDRC via their PDRCs.
  • Compliance: Emission Allowances must be surrendered annually to Provincial DRCs, which in turn reports the data to NDRC.
  • Chinese Certified Emissions Reductions (CCERs) can be used by ECCs to meet a specified share of their Compliance Obligations.
  • Emissions Exchanges: NDRC approves Emissions Exchanges to host Allowance Trading and CCER Trading activities.

Sectors and Sub-Sectors Covered by the National ETS

  1. Petrochemicals. Sub-sectors: Crude Oil Processing, Ethylene.
  2. Chemicals. Sub-sectors: Calcium Carbide, Ammonia Synthesis, Methanol.
  3. Building Materials. Sub-sectors: Clinker, Plate Glass.
  4. Iron & Steel. Sub-sector: Crude steel.
  5. Non-Ferrous Metals. Sub-sectors: Electrolytic Aluminium, Copper Smelting.
  6. Paper Production. Sub-sectors: Pulp Manufacturing, Machine Made Paper, Cardboard.
  7. Electricity Generation. Sub-sectors: Power, Heat & Power Cogeneration, Power Grid.
  8. Aviation. Sub-sectors: Civil Aviation, Passenger Transportation, Air Cargo Transport, Airports.

China ETS: Institutional Setup


Frank Joshua

Chairman & CEO, Emissions Asset Management (EAM) Pte. Ltd.
Registered Office:
One Raffles Place Tower 1, Level 24
1 Raffles Place
Singapore 048616
Mobile: +65 9181 7848
Office: +65 6408 0522
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