(Adopted by the Standing Committee of the Government of the Northern Province of the Great Lakes Region on 17 March 2014 No. 371 of the Royal Government Order No. 371 of 4 April 2014)

Chapter I General

Article 1, in order to strengthen carbon emissions trading market construction, regulate carbon emissions management activities, effectively control greenhouse gas emissions, promote resource savings, environmental friendly societies, and develop this approach in line with relevant laws, regulations and national provisions.

Article II applies to carbon emissions management and their trading activities within the territorial administration.

Article 3. The management of carbon emissions and its transactions follow the principles of openness, equity, justice and integrity.

Article IV. The Provincial Development and Reform Commission is the competent authority for the management of carbon emissions in the province (hereinafter referred to as “the competent authority”), responsible for integrated coordination, organizational and monitoring management of carbon emissions control, quotas management, transactions, carbon emissions reporting and verification.

Relevant sectors such as economic and informationization, finance, national qualifications, statistics, prices, quality and finance perform their duties within their purview.

Article 5 implements carbon emission quotas for industrial enterprises in the region of the province, in accordance with national and provincial provisions.

Enterprises that incorporate carbon emission quotas should fulfil carbon emission control obligations in accordance with the provisions of this approach and participate in carbon emissions trading.

Article 6

Article 7. third-party verification bodies are the corporate body that conducts checks and reviews of corporate carbon emissions and are managed by the competent authorities.

Article 8. The authorities establish a registration system for carbon emission rights for the management of the issuance, possession, change, surrender, write-off and China's certified voluntary emission reductions (CCER) and publish information on a regular basis.

Article 9. Sectors, institutions and persons engaged in carbon emissions management and their trading activities have a confidential obligation on the commercial and technical secrets of the subject matter of carbon emissions trading.

Article 10 Governments of more people at the district level should strengthen the leadership of carbon emission reduction efforts. The authorities should conduct a wide range of advocacy training and educational guidance on carbon emissions management, listen to and adopt the sound advice of enterprises on carbon emission management and transactions, recommend that carbon emissions management be regularly assessed.

Chapter II

Article 11. Within the framework of the carbon emission limitation target, the authorities set up annual carbon emission quotas based on factors such as economic growth and the optimization of industrial structures in the province, set up carbon emission quotas and reported to the provincial governments for clearance.

Total carbon emissions quotas include initial quotas for annual carbon emissions, new retention quotas for businesses and Government retention quotas.

Article 12 In the process of setting up annual carbon emission quotas and drafting carbon emission quotas, the authorities should be widely consulted with the relevant bodies, enterprises, experts and the public. The hearings can take a variety of forms, such as the hearings.

Article 13. Prior to the last working day of June of each year, the authorities approved the initial quota for the annual carbon emissions of the enterprise in accordance with factors such as the historical emission level of the enterprise, through the registration system.

Article 14. New retention quotas for enterprises are mainly used for new production and production changes in enterprises.

Article 15. Government retention quotas are generally not more than 10 per cent of total carbon emissions quotas, mainly for market control and price discovery. Of these, 30 per cent of the Government's retention quotas were used for price discovery.

Prices have found that competitive gains are used to support corporate carbon emission reductions, carbon market regulation, carbon trading market construction.

Article 16 stipulates that the initial quota for annual carbon emissions and the new retention quotas for enterprises shall be allocated free of charge, with a specific allocation approach being developed.

Article 17: Enterprises, which are more than 20 per cent or more than 200,000 tons of carbon dioxide due to factors such as consolidation, separation and changes in production, should report to the authorities. The authorities should reapprove their carbon emission quotas.

Article 18, at the same time, allows China to certify voluntary emission reductions (CCERs) in accordance with the following conditions:

(i) In the administrative region of the province;

(ii) The scope of the enterprise organization that incorporates carbon emission quotas.

At the time of the contribution, the percentage of the offset was not more than 10 per cent of the initial carbon emissions quota for the enterprise year, and one-tons of China certified voluntary emission reductions equal to one-tons carbon emissions quotas.

Article 19 Prior to the last working day of May each year, the enterprise shall pay to the competent authorities the quota and the number of actual emissions equal to the previous year (or China certifying voluntary emission reductions (CCER).

Article 20 last working day in June each year, the authorities cancelled the quota for the contribution of the enterprise in the registration system, China certified voluntary emission reductions (CCERs), the remaining quota for the transaction and the remaining quotas for the retention.

Article 21, the last working day of the month of July, shall publish information on the contribution of the enterprise quota.

Article 2: The enterprise shall apply for review to the competent authorities and shall respond within 20 working days.

Chapter III

Article 23. The subject of carbon emissions trading includes corporate bodies, other organizations and individuals involved in carbon emissions trading activities that are integrated into carbon emission quotas management.

Article 24 deals with carbon emissions trading markets including carbon emission quotas and China's certified voluntary emission reductions (CCER).

It was encouraged to explore innovative carbon emissions trading-related products.

Article 25

Article 26 The trading body shall establish rules on transactions to clarify the rights obligations of the transaction participants, the transaction process, the manner of the transaction, the disclosure of information and the dispute resolution.

Article 27 should establish a trading system. The trading participants shall submit requests to the trading body, establish transactions accounts and comply with the rules of transactions.

Article 28 deals with transactions by trading participants shall pay transaction charges, which are approved by the provincial price sector.

Article 29 would establish a regulatory mechanism for carbon emissions trading market risks with the relevant sectors to avoid transaction price volatility and systemic market risks.

Article 33 prohibits the disruption of carbon emissions trading market order, including through the manipulation of demand and the issuance of false information.

Article 31 organizes research on cross-regional carbon emissions trading rules, standards, methodologies and methodologies to explore the establishment of cross-regional carbon emissions trading markets.

Chapter IV Carbon emissions monitoring, reporting and verification

Article 32 enterprises that incorporate carbon emission quotas should develop the next annual carbon emission monitoring plan, specify monitoring modalities, frequency, responsibilities, etc., and submit the authorities before the last working day of September each year.

Enterprises should strictly monitor the implementation of the monitoring plan. Changes in the monitoring plan should be reported to the authorities in a timely manner.

Article 33, prior to the last working day of February, an enterprise incorporated in carbon emission quotas management should submit to the competent authorities the carbon emissions report for the previous year and be responsible for the authenticity and integrity of the report.

Article 34 quarants of third-party verification bodies to verify carbon emissions in enterprises that incorporate carbon emission quotas.

Article 33 fifteenth verification bodies should independently, objectively and impartially verify the annual report on carbon emissions of enterprises, submit verification reports to the authorities prior to the last working day of April and be responsible for the authenticity and integrity of the report.

Article 36 third-party verification bodies should have the following conditions:

(i) Independent legal personality and fixed operating places;

(ii) There are at least eight verification professional technicians;

(iii) Work experience with greenhouse gas emissions verification-related operations in recent three years.

Article 37 enterprises that incorporate carbon emission quotas should be aligned with verification by third-party verification bodies, such as information and information.

Article 338 examines, inter alia, the verification reports submitted by third-party verification bodies and communicates the results to the licensee.

The results of the review are contested by enterprises that incorporate carbon emission quotas, which may submit requests for review to the authorities within five working days after receipt of the review.

The authorities shall verify the application for review within 20 working days and conclude the review.

Chapter V

Article 40. The provincial governments have established specific carbon emissions funds to support corporate carbon emission reductions, carbon market regulation, carbon trading market construction.

Article 40. The authorities should give priority to supporting projects and policy enabling carbon emission reduction companies to declare emission reductions in their countries, provinces.

Article 42 encourages financial institutions to set up financing platforms for enterprises that incorporate carbon emission quotas, to provide green financial services, to support the development and innovation of carbon emission reduction technologies, to explore financial products such as carbon emission rights mortgages, mass detention, and to achieve mutual benefits.

Article 43 establishes a black list system for carbon emissions. The authorities have incorporated enterprises that have not fulfilled their quota obligations into the relevant credit records of the province and are made available to society through Government websites and the media.

Article 44 enterprises that do not fulfil their obligations under quotas are State-owned enterprises, and the authorities should communicate them to the governing bodies of the respective countries.

The national regulatory body should incorporate carbon emission reductions and the implementation of this approach into the national enterprise performance appraisal system.

Article 42 enterprises that have not fulfilled their quota obligations, the development reform services at all levels are not allowed to receive emission reductions projects from the countries concerned and provincial sections of their declaration.

Chapter VI Legal responsibility

Article 46, in breach of article 19 of this scheme, is subject to more than three times the difference by the competent authorities, in accordance with the annual carbon emissions quota market, but not more than 150,000 dollars, and double deductions in the next annual quota allocation.

Article 47, in violation of article 32 and article 33 of this approach, the competent authorities warn the duration of reporting obligations and may impose a fine of up to 3,000 dollars.

Article 48 provides that enterprises are in breach of article 37 of this approach, leading to the failure to conduct effective verification, and that the authorities warn and accept verification deadlines. Unacceptably, the quota for the next year has been reduced by half the previous year.

Article 49: The subject of carbon emissions trading, the trading body, in violation of article 33 of the scheme, is warned by the authorities. Contrary to the proceeds of the conflict, confiscation of proceeds of the offence is more than three times the proceeds of the violation, but a fine of up to 150,000 dollars, without the proceeds of the violation, and a fine of more than 50,000 dollars.

Article 50 Tests by third-party verification bodies in violation of article 33, paragraph 5, of this approach are warned by the authorities. Contrary to the proceeds of the offence, confiscation of proceeds of the offence is less than three times the proceeds of the violation, but a fine of up to 150,000 yen; and a fine of up to 50,000 yen without the proceeds of the offence.

Article 50, the competent authorities, the relevant executive organs and their staff, acts of negligence, abuse of authority, provocative fraud in the management of carbon emissions, is governed by law, and criminal responsibility is held by law.

Chapter VII

Article 52 states that carbon emissions are carbon emissions from fossil fuel combustion and industrial production processes.

The right to carbon emissions is referred to as the right to release carbon dioxide directly or indirectly to the atmosphere in the production process, subject to the overall carbon emissions control.

The alleged carbon emissions trading refers to the public trading activities carried out by the carbon emissions trading agent in the designated trading body, the carbon emission quotas obtained under the carbon emission rights and China's certified voluntary emission reductions (CCER).

Article 53 certified voluntary emission reductions by China as a result of the project emission reductions achieved under the Clean Methods for the Management of Voluntary Emissions in Greenhouse gases, which are calculated by “tons of carbon dioxide equivalent” (tCO2e).

The price referred to in article 54 of this approach has been found to refer to a number of carbon emissions quotas that the authorities have put in place in the market at the initial stages of the transaction and to the creation of initial transaction prices, with the aim of providing price expectations for market parties.

Article 55 of this approach refers to the extent to which the enterprise has a unit or control.

Article 56 of this approach is implemented effective 1 June 2014.