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Shenzhen Interim Measures For Carbon Emissions Trading Management

Original Language Title: 深圳市碳排放权交易管理暂行办法

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Provisional approach to the management of carbon emissions trading in Johannesburg City

(Sumhen the fifth 105th ordinary session of the Government of the City of Shenzhen, 19 March 2005, No. 262 of the People's Government Order No. 262 of 19 March 2005, which was published from the date of publication)

Chapter I General

Article 1, in order to build a friendly society of environmental resources, accelerate the transformation of economic development, promote energy efficiency and green low-carbon development, establish and regulate carbon emissions trading markets, achieve greenhouse gas emission control targets, and develop this approach in accordance with the provisions of the Zhentz Economic Carbon Emission Management Framework.

Article 2. This approach applies to carbon emissions trading and its monitoring activities within the city's administration.

The approach referred to carbon emissions trading, which refers to the total carbon emissions of carbon emission units and their emission reduction obligations by the Government of the city (hereinafter referred to as the municipality) and the carbon emission control mechanisms that the carbon emission units fulfil their obligations through market mechanisms, including carbon emissionsization, reporting, verification, distribution and trading of carbon emission quotas and compliance.

Article 3

Article IV. The municipal development and reform sector is the competent authority for carbon emissions trading in this city (hereinafter referred to as the competent authority) and performs the following duties:

(i) Develop and organize implementation plans, policies, management systems for carbon emissions trading;

(ii) A total amount of carbon emissions trading and a quota distribution programme;

(iii) Identify and oversee the performance of the regulatory units for carbon emission trading;

(iv) Monitoring carbon emissions trading activities related to carbon emissions trading;

(v) Establish and manage the register of carbon emission rights and the information management system for greenhouse gas emissions;

(vi) Integrate, guide and coordinate carbon emissions trading in the city.

Article 5

The municipal market supervision management is responsible for the development of industrial greenhouse gas emissions, reporting, verification standards, the organization of verification of carbon emissions from industrial sector carbon emissions units that are included in the quota management, and the supervision of industrial carbon verification institutions and verification personnel; and the municipal statistical offices are responsible for the accounting of relevant statistical indicators for the industrial carbon emission units incorporated into the quota management industry sector and for monitoring of statistical indicators verification agencies.

The functional sectors of sectoral governments and finance, financial, trade-related information, scientific and technological innovation, tax, environmental protection, planning of land, transport and water are responsible for the management of carbon emissions trading within their respective responsibilities.

units such as electricity, gas, should be actively aligned with the work related to carbon emissions trading in the relevant sectors.

Article 6. The authorities should establish a unified information management system for greenhouse gas emissions with the relevant sectors, improve the level of information management of greenhouse gas emissions and keep the dynamics of greenhouse gas emissions across the city in a timely manner.

The authorities should establish a website of the public service platform on carbon emissions trading with the relevant sectors to disclose and disclose, in a timely manner, information on management related to carbon emissions trading.

Article 7. The competent authorities should explore the establishment of a unified, open, open and transparent regional carbon emission trading market.

Article 8. Municipal governments should provide incentives for institutions and individuals that have made a significant contribution to carbon emissions trading in the city.

Article 9. The authorities and relevant departments should conduct regular advocacy and training on carbon emissions trading and encourage, support units and individuals to participate in carbon emissions trading.

To encourage the establishment of a carbon emission trading industry association. The Association of Carbon Emissions Trading Industries should strengthen industry self-regulation, promote and disseminate knowledge about carbon emissions trading and promote mitigation.

Chapter II

Article 10 Total emissions of the entire market carbon trading system (hereinafter referred to as a total of the target emissions) should be based on binding indicators identified in the State and the wider Orientale Province, with the scientific, reasonable setting of factors such as economic development trends and carbon emission potential in the city.

Article 11

(i) Emissions of carbon for an arbitrary year amount to more than three thousand tons of carbon dioxide equivalent;

(ii) The large public buildings and construction area has reached over 1 million square meters of national institutions;

(iii) Voluntary accession and approval by the authorities of carbon emission units that are incorporated into carbon emission control management;

(iv) Other carbon emissions units designated by the municipality.

Municipal governments can adjust the scope of regulatory units in accordance with the needs of emission reductions under this section and the development of the carbon emission trading market. Upon approval by the municipal government, the list of regulatory units shall be published on the municipal government and the authorities' portal and the website of the public service platform on carbon emissions trading.

Article 12. The control units shall perform carbon emission control obligations. The management unit is the owner of the building, and its carbon emission control obligations can be delegated to the building users, the property management units, etc.

Article 13 Emissions of an arbitrary year amount to more than one thousand tons of carbon dioxide equivalent, but less than three thousand tons of carbon dioxide equivalent, shall be reported annually to the authorities, with specific reference to the implementation of the regulatory units.

Municipal governments can gradually incorporate the units set out in the preceding paragraph into the quota management, in accordance with the work needs.

Article 14. The authorities shall define the total annual quota for the entire market carbon trading system in accordance with factors such as total target emissions, industrial development policies, industrial development stages and potential for emission reductions, historical emissions and emission reductions (hereinafter referred to as annual quotas).

Article 15. The composition of the quota includes the following:

(i) Reimbursement of quotas;

(ii) Adjustment of the quota allocated;

(iii) quotas for new entryers;

(iv) quotas for the auction;

(v) Price reserve quotas.

Article 16 provides for a non-reimbursable distribution and payment distribution.

The quota for non-repayment includes the allocation of quotas, the reserve quotas for new entryers and the adjustment of the allocation.

A reimbursable quota may be sold by the auction or fixed price.

Article 17 Control units are electricity, fuel, water supply enterprises and their annual objective carbon intensity and pre-appointment quotas should be determined in conjunction with the sectoral baseline carbon emission intensity and expectations of the enterprise.

The regulatory units are other enterprises other than the preceding paragraph and their annual objective carbon intensity and pre-payment quotas should be determined in the same industry in the light of factors such as historical emissions of enterprises, emission levels in their sectors, future mitigation commitments and other corporate emission reduction commitments in the industry.

The non-reimbursable distribution of construction carbon quotas is determined in accordance with the construction function, the area of construction, and the standard of limits for the cost of construction, or carbon emission limits.

The pre-appointment of quotas is in principle distributed every three years, and each of the first quarter of the year's pre-payments are issued. The methodology and rules for the allocation of quotas are developed by the authorities, followed by the approval of the municipal government, and should be published on the authorities' portal and on the website of the carbon emission trading public service platform. The results of the allocation of quotas were issued after the approval of the municipal authorities.

Article 18 The authorities shall reserve a quota of 2 per cent of the total annual quotas as new arrivals.

The new fixed-term asset investment project is expected to reach more than three thousand tons of carbon dioxide equivalent in the year, and the project unit should report to the authorities in advance of the project carbon emissions assessment. In accordance with the average emission levels, industrial policy orientations and technical levels of the unit's industry, the authorities have restructured their assigned quotas in the coming year after the approval of the actual statistical indicators for the year.

Article 19 shall determine the number of actual quotas for the previous year, by 20 May each year, based on actual carbon emissions data and statistical indicators for the previous year of the Authority.

The number of actual quotas for the management units is calculated according to the following formula:

(i) It is a single product industry with a real quota equal to the total production of this unit in the previous year, multiplied by the carbon intensity of the target for more than one year;

(ii) Other industrial industries, with their actual quotas equal to the value of the increase in the actual industrial industry of the unit over the previous year.

The authorities shall, in accordance with the actual number of quotas established after their determination, add or deduct against the number of quotas allocated by the management units in advance of the previous year, the total number of additional quotas shall not exceed the total amount of the quota deducted in the year. Subject to the conditions set forth in article 18 of this approach, the additional quota is not subject to this limitation, but the additional quota should be derived from the reserve of new entryers.

The specific management approach to the application of the quota adjustment was developed by the authorities separately and implemented after the approval of the municipal government.

Article 20 shall not exceed three per cent of the total annual quota. Municipal governments can gradually increase the percentage of quotas in accordance with the development of the carbon emission trading market.

Companies and investors in the carbon emissions trading market may participate in the quota auction.

The specific management approach to the quota auction was developed by the competent authorities, followed by the approval of the municipal government.

Article 21, the price reserve quota includes quotas for pre-reservation by the competent authorities, the reserve quotas for new arrivals and the quota for reclaimed by the competent authorities, which are 2 per cent of the total annual quota.

The price reserve quota should be sold at fixed prices and only for compliance by the regulatory units, which cannot be used for market transactions.

The specific management approach to the price parity reserve quota was developed by the authorities and implemented after the approval of the municipal government.

Article 2 allows the authorities to relocate quotas from the market in accordance with pre-established scales and conditions to reduce market availability, stabilize market prices.

The number of quotas per year ordered by the authorities shall not exceed 10 per cent of the number of valid quotas in the year.

The specific management approach to the quota return was developed by the authorities and was implemented after the approval of the municipal government.

Article 23 provides for the establishment of a stable carbon trading market fund dedicated to market price regulation, support for enterprise emission reduction activities, market service creativity, capacity and platform-building, carbon emissions trading management.

Stabilization of funds is largely derived from income and social donations allocated to quotas and other funds decided by the municipality.

The specific management approach to the stabilization of funds has been developed by the authorities in conjunction with the municipal finance sector, followed by the approval of the municipal government.

Article 24 merged with other units with their quotas and corresponding rights obligations to be assumed by the merged units or new units.

The sub-unitions should establish a reasonable quota and a programme for the division of performance obligations at the time of separation, and report the competent authorities within 15 working days from the date of the separate resolution. Without a programme of division or a failure to submit a case for the competent authorities on time, the performance obligations of the former control units are jointly assumed by the separate units.

Article 25 shall complete carbon emissions, reporting and verification prior to the processing, dissolution or insolvency proceedings and submit a quota equal to the outstanding performance obligations. The number of quotas submitted by the regulatory units is less than those that have not been completed; 50 per cent of the amount of the pre-payment of the quota beyond the completion of the performance obligation is recovered by the authorities and the remaining quotas are dealt with by the control units themselves.

Article 26 is granted a quota for the control unit, which may be transferred, held in a qualitative manner or gain in other lawful ways.

Article 27 deals with carbon emission rights for each natural year. The quota for the previous year could be transferred to the subsequent year. The quota granted in the follow-up year cannot be used to fulfil the quota performance obligations of the previous year.

The time period for carbon emissions trading in this city is determined in accordance with the work requirements of the country and the broader Province for the carbon emission trading pilot.

Chapter III quantification, reporting, verification and compliance

Article 28 shall submit annual carbon emissions reports in accordance with the provisions of this approach; the management units are industrial enterprises and shall also submit statistical indicators data reports.

Annual carbon emissions reports should be prepared by the regulatory units on the basis of greenhouse gas emissions, reporting standards, and submitted to the authorities by 31 March each year through the information management system for greenhouse gas emissions. The statistical indicators data report should be based on the normative requirements of the urban statistical sector and submitted to the municipal statistical offices by 31 March each year.

The statistical calamities of the statistical indicators for the management units should be aligned with carbon emissions, reporting and verification.

The management units shall submit carbon emissions reports in the previous quarter within ten working days after the end of each quarter, through the information management system for greenhouse gas emissions.

Article 29, after the submission of annual carbon emissions reports, shall entrust carbon verification reports to the carbon verification body and submit certified carbon emissions reports to the authorities by 30 April each year.

The management units shall submit the statistics indicators approved by the municipal statistical offices by 10 May to the authorities.

The municipal statistical offices may entrust the statistical indicator data verification body to verify the statistical indicators reports submitted by the management units.

Article 33 shall be responsible for the authenticity, accuracy and normative nature of the report on carbon emissions and statistical indicators and shall not provide false data or provide false data with verification agencies. The same carbon verification body or the same carbon verification officer shall not be authorized for three consecutive years.

Article 31: Carbon verification operations in the industrial industry should have the following conditions:

(i) To register more than two years in the city, the entrepreneurship units, social groups or branches established under the law;

(ii) A fixed office and necessary facility in this city;

(iii) More than 10 full-time verification officers in the market supervision management case, at least two of them in carbon verification operations for more than three years;

(iv) Organizational bodies and internal management systems that meet verification requirements;

(v) The experience with the organization of work relating to the quantification, verification, etc. of greenhouse gases and the absence of carbon verification of records of violations from the industry;

(vi) There is a certain economic repayment capacity and a fund to deal with risks or to buy the corresponding liability insurance.

The carbon verification operation in the industrial industry should be conducted by the following conditions:

(i) A dedicated staff member of the verification body;

(ii) Education with higher education, more than four years of experience of work or a large-scale education of the type of work, and more than eight years of work experience;

(iii) Individual credits are good and there is no record of the trade in violation;

(iv) Professional examination through municipal market supervision management organizations.

Industrial carbon verification bodies and carbon verification personnel should be backed by the municipal market supervision management. The municipal market supervision management should publish the back-to-back carbon verification directory on the municipal government and this unit portal and the public service platform on carbon emissions trading.

The management approach of the industrial carbon verification body and carbon verifying personnel is developed by the municipal market supervision management with the authorities.

Article 32: The carbon verification body and the statistical indicator data verification body shall perform the following obligations:

(i) Independent, objective and impartial verification efforts, including through written verification and field verification, in accordance with verification normative requirements developed by the relevant authorities, and responsible for their carbon emissions or the normative, authentic and accurateness of statistical indicators verification reports;

(ii) Timely carbon emissions or statistical indicators verification reports based on verification;

(iii) The relationship between verification bodies and their verification personnel and the management units should be avoided;

(iv) To comply with confidentiality obligations without unlawful disclosure of carbon emissions data, statistical indicators data and information on the control units obtained during the verification process.

Article 33, which is subject to the carbon verification results, may apply for review to the authorities. The authorities shall take a review decision within ten working days of the date of receipt of the review request. The control units have contested the authorities' review decisions and may apply to administrative review or administrative proceedings in accordance with the law.

The authorities may entrust the specialized agencies with the review.

Article 34 should draw on a proportion of regulatory units to conduct sample inspections of the COE emissions report and the verification reports commissioned by the Authority. The percentage of the sample is not, in principle, less than 10 per cent of the total number of the controlled units.

The authorities should conduct a focused review of the carbon emissions reports of high-risk management units and the verification reports of the carbon verification bodies commissioned, based on the results of the risk rating of the management unit carbon emissions reporting.

The authorities may entrust the inspection to the specialized agencies.

Article XV points out to the sampling of the authorities or to the results of the examination, which may be applied by law for administrative review or administrative proceedings.

Article 36 shall submit a quota or certified voluntary emission reductions to the authorities by 30 June each year. The number of quotas submitted by the regulatory units and their voluntary certified emission reductions that could be used are equal to their actual carbon emissions in the previous year is considered to be fulfilled.

In the case of Article 25 of this approach, the regulatory units should complete compliance obligations within thirty working days of completing carbon emissions, reporting and verification.

Article 37 may use certified voluntary emission reductions to offset annual carbon emissions. A certified voluntary emission reductions amount to a quota. The highest offset is not higher than 10 per cent of the annual carbon emissions of the management units.

The certified voluntary emission reductions generated by the regulatory units within the limits of the carbon emissions verification boundary in this city shall not be used for the implementation obligations of the quotas in this city.

Specific management approaches that offset carbon emissions are developed separately by the authorities and implemented after approval by the municipal government.

Article 338 The authorities shall publish, by 31 July of each year, the list of compliance and compliance with the control units on their portal and the website of the public service platform for carbon emissions trading.

Chapter IV Registration of carbon emissions rights

Article 39 should establish a register of carbon emission rights (hereinafter referred to as the registry). The registration books are the basis for determining the place of a quota right and content. The register shall contain the following:

(i) The name or name of the holder of the quota;

(ii) The nature of the right to quotas, the time to be issued and the duration of effectiveness, rights and content changes;

(iii) Additional information relating to quotas and holders.

The authorities may entrust specialized agencies with the day-to-day management of the register.

The rules governing the registry are developed separately by the competent authorities and implemented after the approval of the municipal government.

Article 40 Regulatory units with carbon emission quotas, other organizations and individuals shall register in the registry.

The following information should be made available to the authorities when the registry is registered by the control units and other organizations:

(i) A certificate of registration of legal persons;

(ii) Tax registration certificates;

(iii) The identity of the legal representative;

(iv) The identity of the Chief Accounts Representative and the representative of the General Account for the modalities of communication.

The statutory representative authorizes or entrusts another person, and shall provide a delegation of authority and a means of identification and communication.

The following information should be provided to the competent authorities when the individual is registered:

(i) The identity of the applicant;

(ii) The identity of the accounts and the manner of contact.

It should be accompanied by a delegation of authority, as well as the identification and contact of the person.

Article 42 states that the authorities shall issue quotas through the register. The quota has been effectively issued as the initial registration of the deadline.

The authorities should conduct initial registrations of voluntary emission reductions through the register. Accreditation of voluntary emission reductions from entry to the emission reduction project owner is considered to complete the initial registration.

Article 43 is subject to the initial registration of quotas or the certified voluntary emission reductions, with one of the following cases, and the transfer of registration shall be carried out:

(i) Sale;

(ii) Grants;

(iii) Succession;

(iv) Corporate consolidation and transfer resulting from separation;

(v) Mandatory transfer by the People's Court, the arbitral body or the decision;

(vi) Other mandatory transfers made in accordance with the provisions of the law, legislation and regulations.

Article 44 requires the transfer of registrations for the reasons of the sale, and the parties to the transaction shall submit requests to the registry through the trading system of the trading body, which is automatically completed by the registry.

The person concerned shall apply to the competent authorities for non-transfer registration for reasons other than the sale and submission of the following information:

(i) Transfer of registration applications;

(ii) The applicant's identity certificate;

(iii) A quota or certified material for the transfer of voluntary emission reductions.

Article 42 creates quality detention by quotas or certified voluntary emission reductions, and the owner and the quality shall be registered in quality and submit the following information to the competent authorities:

(i) Applications for registration in quality;

(ii) The identity of the applicant;

(iii) Quality contracts;

(iv) The main claim contract;

(v) A certificate for quality custody.

Article 46 deals with non-transfer registration or quality registration, and the applicant submits the full and consistent application form in accordance with the provisions of this approach, the authorities shall make written review decisions at the time and complete registration work within three working days.

Article 47 quateria shall apply for the transfer of quotas within ten working days of the date of completion of the commercial registration; the failure to apply for a quota transfer is not registered, and the performance obligations of the former control unit are jointly assumed by the sub-unitions.

A merger of the regulatory units shall apply for the transfer of quotas within ten working days of the date of completion of commercial registration.

Article 48 has a quota in one of the following cases, and the authorities shall write in a timely manner:

(i) quotas for photographs in the annual quota auction;

(ii) The quota not sold in the end of each quota reserve;

(iii) The quota recovered by the competent authorities in accordance with article 25 of this scheme;

(iv) The quotas used by the regulatory units for compliance;

(v) quotas for the effective expiration of the mandate;

(vi) The quota for participation in the market in the voluntary write-off of the subject matter;

(vii) Other cases to be cancelled by law.

Accreditation of voluntary emission reductions is one of the following cases, and the authorities shall deduct the registration books and report the national registry for write-offs:

(i) The management units shall be used for compliance;

(ii) The voluntary write-off of market participants;

(iii) Other cases to be cancelled by law.

Article 49 states that the competent authorities shall carry out a qualitative notice within three working days of the date of the processing of quotas or the certification of the registration of voluntary emission reductions. The notice of mass detention includes the following:

(i) Quality of detainees;

(ii) The number of registered quotas or certified voluntary emission reductions;

(iii) The number of places of mass detention or the order of the certified emission reductions;

(iv) Period of time of detention.

Article 50 shall issue a notice on the website of the designated trading body within three working days of the date of the registration of the quota cancellation or the deduction of voluntary emission reductions. The announcement includes the following:

(i) The reasons for the cancellation of quotas or the deduction of voluntary emission reductions;

(ii) Total certified voluntary emission reductions by cancellation of quotas or by deductions;

(iii) Orders for the cancellation of quotas or certified emission reductions.

Chapter V

Article 50 governs units and other organizations and individuals consistent with the rules of carbon emissions trading in this city may participate in carbon emissions trading activities.

Article 52 Zhentz Exchange (hereinafter referred to as a brief exchange) is the designated trading body for carbon emissions trading activities in this city. The exchange primarily performs the following responsibilities:

(i) Provide transaction sites, facilities and services for carbon emissions trading;

(ii) Develop rules on transactions;

(iii) Disclosure, updating of information on transaction activities in real time;

(iv) Establish internal regulatory and risk control institutions to monitor transactions in the trading system and to prevent transaction risks and violations;

(v) To cooperate with the authorities and relevant bodies in identifying and correcting violations;

(vi) Other responsibilities under the authority.

The supervisory and investigatory staff involved in carbon emissions trading operations should obtain the certificate of eligibility for the exchange of nuclear licensors.

Article 53 should develop regulations, such as trade rules and rules for settlement, in conjunction with the characteristics of the market. The rules should be presented to the competent authorities and relevant bodies.

Article 54 of the exchange of carbon emissions trading products includes carbon emission quotas, certified voluntary emission reductions and other carbon emissions trading types approved by the relevant authorities.

Innovative carbon emissions trading types are encouraged.

Article 55: The subject of a market transaction shall be subject to fair, voluntary, honest and adherent principles for trading and shall not have the following acts:

(i) The transaction has cancelled quotas or certified voluntary emission reductions;

(ii) The transaction of the quota obtained unlawfully or certified voluntary emission reductions;

(iii) More than their own quotas, the number of certified voluntary emission reductions or the ability to pay for funds;

(iv) Other transactions prohibited by the authorities or by the exchange.

Article 56 deals shall be carried out in accordance with the law, such as the current transaction, the electronic auction, the choice of the price point, the largest transaction and the transfer of agreements.

Article 57 should establish an open system of information. Each transaction day publishes transaction information such as the date of delivery, the amount of the transaction.

Article 58 provides for the harmonization of transaction liquidation and receipt of the exchange. The transaction funds are governed by a third party, and the banks shall be administered and disbursed in accordance with the transaction rules developed by the Exchange and other relevant provisions. The trading system and the registration of a small amount of information should be intertwined with the timely completion of the liquidation and receipt of the goods.

Article 59 should establish the necessary risk control regime, such as large transaction regulation, risk alerts, high drop-out restrictions, to maintain market stability and to prevent market risks.

When a significant transaction is unusual, the exchange can take urgent measures such as freezing the transaction accounts, suspension of transactions, and report to the relevant authorities in a timely manner.

Article sixtieth should establish rules for the management of members, provide strict oversight of the transactions of the members and handle violations of the members in accordance with the rules of management.

The transaction activity shall pay the related costs, such as transaction charges, in accordance with the provisions. The transaction fee standard was developed by the exchange and was implemented after the approval of the current market price authorities.

Chapter VI Oversight management

Article 62 may take the following measures when the authorities and other relevant departments perform their regulatory duties:

(i) On-site inspection and investigation of regulatory units, market transaction subjects, carbon verification bodies, exchanges;

(ii) Inquired the parties and units and individuals associated with the investigation;

(iii) Access, reproduction of registration records, transaction records, financial accounting information and other relevant documentation and information for parties and units and individuals associated with the investigation;

(iv) To search the parties and the registered accounts, transactions accounts and fund accounts for the units and individuals involved in the investigation;

(v) The freezing of registered accounts and transactions accounts by parties and units and individuals associated with the investigation;

(vi) Other regulatory measures prescribed by law, regulations.

Article 63, the authorities, municipal market supervision management and statistical offices should strengthen the oversight management of carbon verification institutions and statistical indicator data verification bodies, incorporate verification agencies into the current market corporate credit system, provide relevant credit information to the corporate credit information management agencies in a timely manner, and disclose the website of the public service platform on carbon emissions trading.

The carbon verification body and statistical indicator data verification bodies are synchronized, frastructured or fabricated with the regulatory units, false reports or reports of serious misconduct, disclosure of business information, other stakes with the regulatory units, in violation of the principle of fair competition, and de-listed by the municipal market supervision management and statistical offices in accordance with their responsibilities under this scheme, in addition to sanctions under this approach.

Article 63 quater supports regulatory units to prioritize emission reduction financing projects in the countries, the Province of Broad Orientale and the city, to support regulatory units in applying green credit and other financing services for financial institutions under the same conditions, and to support financial institutions for financial innovation aimed at enhancing the capacity of regulatory units for emission reductions and the functioning of the carbon trading market.

Article XV's refusal to submit carbon emissions reports or insufficient compliance with the quota compliance obligations shall also take the following measures in the competent authorities and relevant functional sectors, in addition to the penalties imposed under this scheme:

(i) The authorities shall make credit information available to the corporate credit information management body and publicize them to the society through the website of the public service platform for carbon emission trading;

(ii) All financial funds currently being funded by the management units, which may not be approved within five years for any financial support from the city;

(iii) The management unit is a city-based, regional State-owned enterprise, and the authorities communicate violations of the control units to the municipal, regional and national regulatory bodies. The relevant national regulatory bodies should incorporate carbon emission control responsibilities into national enterprise performance appraisal systems.

Article 46 below the number of quotas held by the authorities that should be deducted by the authorities, shall be added by 30 May each year; unexpended portions of the excess emissions shall be treated by the competent authority in accordance with article 76 of this approach.

Article 67 does not submit annual carbon emissions reports within the time period specified in this scheme and has not been submitted, or the construction, fabrication of carbon-relevant data, changes in statistical indicators data, carbon emissions from industries and types of enterprises, depending on the energy consumption data of the regulatory units, changes in statistical indicators, and carbon emissions from the same industry.

The management units do not submit the statistical indicators data reports within the period specified in this approach and are not submitted, and their statistical indicators are found to be zero.

Article 68 Any unit or individual shall be entitled to report to the competent authorities or other sectors on the carbon emissions of the controlled units, reports, verification activities of the body and violations committed by the market in the course of the transaction. The sectors that receive the report should promptly investigate and process the results-based feedback, while keeping the reporting person confidential.

Article 69 shall not disclose in the management of carbon emissions rights transactions State secrets, work secrets or commercial secrets and personal privacy in the performance of their duties.

Chapter VII Legal responsibility

Article 76, in violation of article 33 of this approach, the management unit is responsible for the change of time limits by the authorities and the difference in actual carbon emissions by three times the average price of carbon emissions trading market quotas for the six-month period prior to the offence.

Article 76 regulates and verification bodies, in violation of article 33 of this approach, are structured in a collusion or facsimile of data by the competent authorities, and the difference between the control units and the verification body and the actual carbon emissions is double the average price of the carbon emission trading market for the six-month period prior to the offence.

In violation of article 32, paragraph 1, of this approach, the verification body falsely reports or reports of serious misconduct by the competent authority to change the period of time and to make a difference with actual carbon emissions more than three times the average price of carbon emissions trading market quotas for the six-month period prior to the offence. The liability is assumed by law for losses incurred by the management unit.

In violation of article 32, paragraph 3, of this approach, the verification body has other stakes with the control unit, in violation of the principle of fair competition, being responsibly corrected by the competent authorities and fines of five million dollars; in serious circumstances, ten thousand fines.

Article 76 quantification of information or data by the carbon verification body or the statistical indicator data verification body in violation of article 32, paragraph 4, of this approach, is subject to correction by the competent authorities or the municipal statistical offices and fines of US$ 50,000; in serious circumstances, ten thousand fines. The liability shall be borne by law for losses incurred by the management units.

Article 76, paragraph 1, of the scheme is not submitted in full quotas or certified voluntary emission reductions in the prescribed time period in violation of the provisions of article 36, paragraph 1, of this scheme, by the competent authority to fill the quota equal to the excess emissions; by the delay of delivery, by the competent authority from its registry accounts, in part by deductions from the authorities directly deducted by the authorities from their next annual quota; and by the excess of emissions from the average price of three times the carbon emissions trading market by the end of the month of performance.

In violation of article 36, paragraph 2, of this approach, the regulatory units do not complete compliance obligations before evictions, disbandment or insolvency liquidation, and are assigned by the competent authorities to a quota equal to the excess emissions; the failure to be completed by the authorities to deduct from their registry accounts, in part by the regulatory units, and the excess emissions exceeds three times the average price of the carbon trading market for the consecutive six months prior to the expiration of the month.

Article 76 of the market transaction subject, in violation of article 55 of this approach, engages in transactions in violation of the provisions of article 55 of this scheme, by the competent authority responsible for putting an end to the offence, returning to the wrong profit and paying a fine of up to five0,000 dollars; in the event of a severe fine of less than 100,000 dollars. The losses incurred by other trading parties should be borne by law.

Article 77 Exchanges do not carry out their duties in the area of regulation or do not fulfil their reporting obligations under this scheme, are subject to the authority's duty to order the period of time and fine of US$ 50,000, in the event of serious fines.

In violation of article 61 of this approach, the exchange does not make charges under the prescribed fee criterion, which is redirected by the competent authority to refund costs that are not in accordance with the standards, with a fine of US$ 50,000.

Article 78, the subject of a market transaction, the verification body, in violation of the provisions of this approach, obstructs, hampers the supervision of the inspectorate by the competent authorities of a fine of up to 500,000 dollars; in the event of a severe fine of tens of 100,000 dollars; and is suspected of a crime to be transferred to the judiciary by law.

Article 79, the competent authorities, the relevant functional departments and their staff members do not perform their duties in accordance with this approach, play a role in the management of carbon emissions, abuse of authority, provocative fraud, and renders the responsible lead and direct responsibilities in accordance with the law; imposes liability under the law for economic losses on others; and suspected crimes and transferred to the judiciary.

Chapter VIII

Article 810 does not apply to the provisions of this approach for transactions other than carbon emissions rights undertaken by the exchange.

Article 81 states referred to in this approach include new regional management bodies.

Article 82

(i) Carbon emissions refer to emissions of carbon dioxide gases, including direct carbon dioxide emissions from the burning of fossil fuels or production processes, as well as indirect carbon dioxide emissions resulting from the acquisition of electricity, heat, refrigeration or vapour;

(ii) Carbon emission units refer to enterprises, buildings or other sources of emissions that directly or indirectly discharge carbon dioxide emissions to the atmosphere as a result of activities such as production, operation, life, etc.;

(iii) Large public buildings refer to the provisions of the Civil Architecture and Energy Information Statistics System, developed by the Ministry of Housing and Rural Construction, approved by the National Institute of National Statistics, which exceeds 20,000 square meters and buildings for various public activities, including office buildings, commercial buildings, tourism buildings, section-based buildings, communications buildings, and transport passenger use, exhibition centres;

(iv) The office buildings of State organs refer to office buildings administered by the Government's financial funds-building and the management of State administrations, in accordance with the provisions of the Civil Archives and Statistical System, developed by the Ministry of Housing and Rural Development, approved by the National Statistics Office;

(v) Reimbursement of quotas, which are defined by the competent authorities in each quota allocation period, in accordance with the principles and methods of the distribution of the quota and are not reimbursed for the quota allocated to the management units;

(vi) The intensity of carbon emissions, which refers to the ratio of annual carbon emissions of the management unit to its output of production activities;

(vii) Goal carbon intensity, which is determined by the municipal authorities, in accordance with the goal of carbon intensity allocated to the city of Shenzhen, in line with the development conditions of the different industries in the city and the level of historical carbon intensity, requires that the regulatory units should achieve the carbon intensity targets;

(viii) Outputs of production activities, which refer to quantitative results of the production activities of the controlled units, and statistical indicators, including electricity, water supply or industrial increase, based on the different industries affiliated to the regulatory units;

(ix) The duration of performance, which refers to the period in which the regulatory units must submit such quotas in order to offset their actual carbon emissions; the period of performance of the I municipal carbon emissions trading is a natural year;

(x) Removals refer to the fact that the regulatory unit would retain the quota not used in the current year or certify that voluntary emission reductions would be used in subsequent years;

(xi) The issuance of a reference to the creation and distribution by the authorities of quotas in the registry system in the city;

(xii) Implementation refers to the submission by the regulatory units to the competent authorities of a quota equal to their actual carbon emissions in the previous year or the voluntary certified emission reductions that could be used to offset their carbon emissions during the previous year;

(xiii) Total emissions, which means the largest amount of carbon dioxide equivalent permitted by all regulatory units within a fixed period of time, equals the total number of quotas allocated by the authorities during that fixed period and the voluntary emission reductions permitted;

(xiv) Total quotas refer to the maximum amount of CO2 emissions that may be allocated by the authorities to all regulatory units;

(xv) New arrivals refer to newly established new units consistent with the conditions of the controlled units, as well as to existing units in the new fixed-term asset investment project consistent with the conditions set out in article 18 of this approach;

(xvi) The number of valid quotas for the year, which refers to the number of quotas allocated for the current year and the number of those transferred from previous years;

(XVII) The subject of market transactions refers to regulatory units, other organizations and individuals engaged in carbon emissions trading in the current market;

(xviii) Accreditation of voluntary emission reductions, which are generated by voluntary emission reduction projects consistent with the conditions set by the National Development and Reform Commission and issued by the National Development and Reform Commission in accordance with the Provisional Approach to the Management of Greenhouse Gas Inventories;

(XIX) The Chief Accounts Representative refers to the accounts recognized for the significant operation of the accounts, in accordance with the mandate of the account holders, and, as confirmed by the Chief Account, the major operation was not completed in the registration books, but the Chief Accounts Representative was unable to initiate significant operations;

(20) General account representatives refer to the day-to-day operation and management of their accounts in accordance with the mandate of the account holders and to the launch of major operating account representatives;

(xxi) The current transaction refers to the transaction declaration by the subject involved in the transaction in the manner in which the transaction is authorized by the price of the transaction and is matched by the trading system;

(xii) Acceasing limit means that the price fluctuations created by the exchange to control the volatility of quotas market prices may be adjusted by the exchange on the basis of market realities;

(xxiii) Exclusive emissions refer to the percentage and components of the actual carbon emissions of the controlled units over the submission of their performance for the year and the acceptable certified voluntary emission reductions;

(24) For a continuing period of six months prior to the month of operation, reference shall be made to a continuing period of six months before the deadline for the performance of the management units;

(25) The average price of carbon emissions trading market quotas for a continuing six-month period is the average price of quotas issued by the exchange and six months before the end of the month of implementation, and the weighted average of the market prices for the consecutive six-month period.

Article 83 is implemented in the light of this approach in the area of construction, transport, with specific implementation options being developed by the competent authorities with the relevant sectors.

Article 84 of this approach refers to “more than”, “after” and “after”, “before”, including this figure; the term “adequate”, “size” and does not include this figure.

Article 82 of this approach stipulates that the competent authorities and the relevant departments shall establish and issue implementation within three months of the date of operation of the scheme.

Article 86 of this approach is implemented effective 19 March 2014.