Beijing says it will impose heavier fines on entities that falsify carbon-emission data as authorities look to expand China's carbon market to more industrial sectors.
The new rules, amended last month by China's cabinet and set to take effect from May, will give the country's environment ministry a broader mandate to police polluters and impose larger fines for any misconduct.
Companies that have withheld or massaged their emissions data will be fined as much as 2 million yuan ($278,086) under the stricter regulations. They will also have their carbon allowances reduced. Authorities allocate these allowances to companies to indicate how much CO2 they can emit during a given period. If that amount is exceeded, they then need to buy more from the market.
China's emissions-trading system has been marred by claims of data falsification since its creation in 2021, and authorities have repeatedly pledged to crack down on fraudulent activity. In a report to lawmakers last March, the National Development and Reform Commission promised to improve the accuracy of carbon-emissions data and step up market scrutiny.
The rule tightening comes as Beijing not only plans to expand its carbon market to new industries but also combine it with the market for trading renewable energy.
The national carbon market currently mainly covers the power sector, encompassing more than 2,000 utilities that generate about 5 billion tons of greenhouse gas emissions a year, according to the Ministry of Ecology and Environment, the main environmental regulator.
Among the sectors that are likely to be added this year are aluminum and cement production, state media reported Monday.
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(END) Dow Jones Newswires
02-05-24 0246ET
