Overview of Chinese Emission Trading Scheme

①System Overview

The system in China follows most of the Emission Trading Scheme (ETS) conventions. A certain amount of GHG emissions is granted to each industry, and depending on the excessive use or the decreased use, the emission credits are either bought or sold.

②Regional ETS Overview

Depending on the region the ETS scheme differs. China is divided into 7 regions and each have the following system.

③Responsibilities and Penalties

There is a requirement to submit and settle the emission amount to the government on a specified date. The date of submission differs based on region. If the deadline is passed, then the penalty goes as follows:

  • The name of the company will be recorded in government systems, and banks as well as media proclamation.
  • All financial assistance will be stopped and it may take up to 5 years to request for a appeal.

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