China ETS
Interim Regulations on the Administration of Carbon Emissions Trading (State Council Decree No. 775)
Topic : Climate · Level : National
Today
Covers power, steel, cement, aluminium; 3,680 entities in 2026. Decree 775 amended (Art. 24, 26) from 15 Aug 2026.
Summary
China's national carbon market caps emissions of large emitters through tradable allowances. Since 2025 it covers steel, cement and aluminium as well as power. Covered plants report verified emissions each year and surrender allowances.
Who is concerned
- Turnover
- non précisé
- Employees
- non précisé
- Listed company
- cotées et non cotées
- Sectors
- Power generation
- Steel
- Cement
- Aluminium smelting
- Triggering activities
- Direct emissions >=26,000 tCO2e/yr
- Listed as key emitter by province
- Extraterritorial reach
- No
Domestic only. Indirect: buyers and CBAM declarants request verified plant emissions and carbon price paid.
- Examples
- Coal-fired power plant in Jiangsu
- Integrated steel mill supplying EU automakers
- Aluminium smelter in Inner Mongolia
What the law requires
- Submit annual GHG report to provincial authority by 31 March
- Undergo provincial verification of reported emissions
- Surrender allowances equal to verified emissions by MEE deadline
- Complete monthly digital certification of accounting data
Penalties
Late surrender: RMB 1-5M, then 5-10x prior-month avg price if not cleared. Falsified data: RMB 0.5-2M or 5-10x gains; 50-100% allowance cut.
What this changes for a supplier in China
Steel, cement and aluminium suppliers now hold verified plant-level emissions and a carbon cost. EU buyers will ask for these data for CBAM and Scope 3.
Expected evidence
- Verified annual GHG emissions report
- Allowance surrender record
- Product-level emission intensity (tCO2e/t)
Tiers : Tier 1-N