(Promulgated by Decree No. 20 of Shanghai Municipal People's Government on February 21, 2025, effective as of April 1, 2025)

 

Chapter I General Provisions

Article 1 (Purpose and Basis)

With a view to regulating carbon emission management, strengthening the control of greenhouse gas emissions, actively and prudently promoting carbon peaking and carbon neutrality, promoting green and low-carbon development of the economy and society, and advancing ecological civilization construction in this Municipality, these Measures are formulated in accordance with relevant laws and rules and in the light of the actual circumstances of this Municipality.

Article 2 (Scope of Application)

These Measures apply to local carbon emission allowances management, voluntary greenhouse gas emission reductions, and related trading activities, as well as their supervision and management within this Municipality. The supervision and management of carbon emission trading included in the national carbon emission trading market and voluntary greenhouse gas emission reduction trading included in the national voluntary greenhouse gas emission reduction trading market shall be carried out in accordance with relevant national provisions.

Article 3 (Management Departments)

The municipal ecology and environment department is responsible for organizing the implementation, coordinating in a comprehensive way, and supervising the management of local carbon emission allowances management, voluntary greenhouse gas emission reductions, and related trading activities within this Municipality. District ecology and environment departments shall assist the municipal ecology and environment department in implementing specific tasks within their jurisdictions.

Departments such as development and reform, finance, economy and informatization, housing and urban-rural construction management, transport, commerce, culture and tourism, local finance, statistics, market regulation, state-owned assets, and data shall cooperate in implementing these Measures in accordance with their respective responsibilities.

Article 4 (Dual Control System for Carbon Emissions)

This Municipality shall establish and improve a dual control system for total carbon emissions and intensity in accordance with national provisions, strengthen the construction of relevant basic capabilities, and take effective measures to control greenhouse gas emissions.

Article 5 (Standard System and Statistical Accounting System Construction)

This Municipality shall strengthen the construction of a carbon emission standard system in accordance with the scientific, standardized, coordinated, and secure requirements. Enterprises, social organizations, educational institutions, and scientific research institutions are supported to carry out or participate in carbon emission standardization work.

This Municipality shall establish a regional, key industry enterprise, and key product carbon emission statistical accounting system in accordance with national provisions, and strengthen the collection, statistics, accounting, and evaluation of carbon emission data to provide data support for systematically identifying the overall carbon emission situation and formulating relevant policies and measures.

Article 6 (Scientific and Technological Support)

This Municipality supports enterprises, social organizations, educational institutions, and scientific research institutions in conducting basic research and cutting-edge technology research of carbon reduction in key areas, and promotes the deep integration of industry, academia, research, and application of low-carbon, zero-carbon, and negative-carbon technologies.

Article 7 (Publicity and Education)

The ecology and environment department and other relevant departments shall adopt various forms to strengthen the publicity and education of knowledge related to greenhouse gas emission reduction, create a good atmosphere for the whole society to participate in greenhouse gas emission reduction activities, and promote the green and low-carbon transformation of production and lifestyles.

Article 8 (Collaboration in the Yangtze River Delta Region)

This Municipality shall establish a communication and coordination mechanism for carbon emission management with relevant provinces and cities in the Yangtze River Delta region, strengthen information sharing, and promote exchanges and cooperation in green and low-carbon technology innovation, application, and industrial development.

Chapter II Carbon Emission Allowance Management

Article 9 (Allowance Management System)

This Municipality shall establish and improve a carbon emission allowance management system compatible with the dual control system for total carbon emissions and intensity. The types of greenhouse gases and industry scope subject to carbon emission allowance management shall be proposed by the municipal ecology and environment department in conjunction with relevant departments based on national and municipal greenhouse gas emission control targets, and shall be submitted to the Municipal People's Government for approval before being publicly announced.

The municipal ecology and environment department, in conjunction with relevant departments, shall formulate the criteria for determining units subject to carbon emission allowance management (hereinafter referred to as "regulated units") based on national and municipal greenhouse gas emission control targets, and shall compile an annual list of regulated units in accordance with these criteria.

The criteria for determining regulated units and the annual list of regulated units shall be publicly announced by the municipal ecology and environment department.

Article 10 (Allocation Plan)

The municipal ecology and environment department, in conjunction with relevant departments, shall formulate an annual carbon emission allowance allocation plan based on national and municipal greenhouse gas emission control targets, taking into comprehensive consideration factors such as economic and social development, industrial structure adjustment, industry development stage, historical emission levels, and market regulation needs. The plan shall specify the total amount of carbon emission allowances, allocation methods, and relevant management requirements.

The total amount of carbon emission allowances includes directly allocated allowances and reserve allowances.

Article 11 (Solicitation of Opinions)

In the process of proposing and formulating the types of greenhouse gases and industry scope subject to carbon emission allowance management, the criteria for determining regulated units, and the annual carbon emission allowance allocation plan, the municipal ecology and environment department shall solicit opinions from relevant industry associations, enterprises, public institutions, experts, and the public.

Article 12 (Allowance Registration)

Carbon emission allowances shall be subject to unified registration. The acquisition, modification, surrender, and cancellation of carbon emission allowances shall be registered through the carbon emission allowance registration system.

The municipal ecology and environment department may entrust a carbon emission allowance registration agency to undertake specific tasks such as carbon emission allowance registration and the operation and maintenance of the carbon emission allowance registration system.

Article 13 (Allowance Issuance)

The municipal ecology and environment department shall determine the carbon emission allowances for regulated units based on the annual carbon emission allowance allocation plan and issue them through the carbon emission allowance registration system adopting a combination of free and paid methods. The issuance or adjustment of carbon emission allowances shall not violate the annual carbon emission allowance allocation plan.

Article 14 (Allowance Transfer)

If regulated units merge, their carbon emission allowances shall be transferred to the surviving or newly established units, and the transfer situation shall be reported to the municipal ecology and environment department.

If regulated units split, a reasonable carbon emission allowance allocation plan shall be formulated based on the ownership of emission facilities, and the allocation situation shall be reported to the municipal ecology and environment department.

Article 15 (Data Quality Management)

Regulated units shall, by December 31 of each year, formulate a greenhouse gas emission data quality control plan (hereinafter referred to as the "data quality control plan") for the following year in accordance with the technical specifications formulated by the municipal ecology and environment department, specifying the emission boundary, data determination methods, measurement frequency, responsible personnel, and other contents, and submit it to the municipal ecology and environment department.

Regulated units shall implement the data quality control plan, equip and use legally verified or calibrated measuring instruments, and accurately and truthfully account for greenhouse gas emissions.

Article 16 (Annual Reporting Obligation)

Regulated units shall, by March 31 of each year, compile a greenhouse gas emission report (hereinafter referred to as the "annual emission report") for the previous year and submit it to the municipal ecology and environment department. The annual emission report shall include basic information on the production and operation of the regulated unit, emission types, emission amounts, and other contents.

Regulated units shall be responsible for the truthfulness, completeness, and accuracy of the annual emission report. The annual emission report shall not contain major defects or omissions; regulated units shall not tamper with or forge data materials, shall not use false data materials or engage in other fraudulent activities. The original records and management ledgers related to the data in the annual emission report shall be retained for at least five years.  Regulated units may entrust legally established technical service agencies to compile the annual emission report.

Other emission units whose annual carbon dioxide equivalent emissions reach a certain scale shall report their greenhouse gas emission situation for the previous year to the municipal ecology and environment department within the time limit specified by the municipal ecology and environment department. The specific scope of emission units and reporting requirements shall be determined by the municipal ecology and environment department in conjunction with relevant departments.

Article 17 (Information Disclosure)

This Municipality promotes the disclosure of greenhouse gas emission information in the annual emission reports of regulated units to the public for supervision. If the State has other provisions on information release, such provisions shall prevailed.

Article 18 (Carbon Emission Verification System)

The municipal ecology and environment department shall verify the annual emission reports submitted by regulated units, form verification results within the prescribed time limit, and determine their annual greenhouse gas emissions based on the verification results, notifying the regulated units. If a regulated unit refuses to submit the annual emission report, the municipal ecology and environment department shall calculate and determine its annual greenhouse gas emissions, which shall serve as the basis for the arrears clearance of the regulated unit’s carbon emission allowance.

The municipal ecology and environment department may, through government procurement of services, entrust legally established technical service agencies to conduct technical reviews of the annual emission reports submitted by regulated units and issue technical review reports. Regulated units shall cooperate with technical service agencies in conducting technical reviews and provide relevant data and information truthfully.

The municipal ecology and environment department shall formulate verification rules compatible with carbon emission verification work.

Article 19 (Management Requirements for Technical Service Agencies)

Technical service agencies shall possess facilities, equipment, technical capabilities, and personnel appropriate to their business, establish a business quality management system, and carry out relevant business independently, objectively, and impartially.

Technical service agencies shall be responsible for the annual emission reports and technical review reports they issue, ensuring that there are no major defects or omissions, and shall not falsify or forge data, use false data, or engage in other fraudulent practices, nor shall they disclose relevant information or data obtained during the technical review process.

Technical service agencies shall not simultaneously engage in the preparation of annual emission reports and technical review business within this Municipality.

Article 20 (Re-examination)

If a regulated unit has objections to the technical review report and can provide relevant supporting materials, the municipal ecology and environment department shall organize a re-examination and determine its annual greenhouse gas emissions based on the re-examination results.

If there is a significant difference between a regulated unit's annual greenhouse gas emissions and those of the previous year, or between the annual emission report and the technical review report, the municipal ecology and environment department may organize a re-examination.

Article 21 (Carbon Allowance Surrender)

Regulated units shall, within the specified time limit, surrender their carbon emission allowances in full through the carbon emission allowance registration system based on the annual greenhouse gas emissions determined by the municipal ecology and environment department; the surrendered carbon emission allowances shall be canceled accordingly.

Regulated units may use purchased carbon emission allowances or voluntary greenhouse gas emission reductions that comply with national and municipal provisions for surrender, but voluntary greenhouse gas emission reductions within their emission boundaries shall not be used for surrender.

If a regulated unit has surplus carbon emission allowances after surrendering its allowances in full, the surplus may be carried forward; specific provisions shall be formulated separately by the municipal ecology and environment department.

Regulated units are encouraged to voluntarily cancel their carbon emission allowances for such public welfare purpose as reducing greenhouse gas emissions.

Article 22 (Handling of Shutdowns and Relocations)

If a regulated unit is dissolved, deregistered, ceases production or operation, or relocates out of this Municipality, it shall promptly report its greenhouse gas emission situation for the current year to the municipal ecology and environment department. The municipal ecology and environment department shall promptly organize a verification of the regulated unit's greenhouse gas emissions and determine its greenhouse gas emissions for the current year.

The regulated unit shall surrender its carbon emission allowances based on the greenhouse gas emissions determined by the municipal ecology and environment department.

Chapter III Voluntary Greenhouse Gas Emission Reduction

Article 23 (General Requirements)

The municipal ecology and environment department shall establish and improve voluntary greenhouse gas emission reduction mechanisms such as carbon inclusive programs in accordance with the goals of carbon peaking and carbon neutrality, and strengthen the management of voluntary greenhouse gas emission reduction activities.

Article 24 (Carbon Inclusive Mechanism)

This Municipality shall establish and improve a carbon inclusive mechanism, develop corresponding emission reduction projects and scenarios based on carbon inclusive methodologies, quantify and assign value to the carbon reduction actions of units or individuals, and use commercial incentives and market trading to guide the whole society in forming green and low-carbon production and lifestyles.

The municipal ecology and environment department shall establish a carbon inclusive management and operation platform to provide technical support for the management of carbon inclusive methodologies, emission reduction projects, scenarios, and related carbon inclusive emission reductions.

Article 25 (Methodologies and Emission Reduction Projects/Scenarios)

Government organs, enterprises, public institutions, social organizations, and other units or individuals are encouraged to develop carbon inclusive methodologies and emission reduction projects and scenarios.

The municipal ecology and environment department shall establish a technical evaluation and demonstration mechanism for carbon inclusive methodologies and emission reduction projects and scenarios, form an expert database, and provide technical support for evaluation and demonstration work. Carbon inclusive methodologies and emission reduction projects and scenarios that pass evaluation and demonstration shall be publicly announced.

The specific management procedures for carbon inclusive methodologies and emission reduction projects and scenarios shall be formulated by the municipal ecology and environment department.

Article 26 (Emission Reduction Management)

Government organs, enterprises, public institutions, social organizations, and other units or individuals (hereinafter referred to as "implementing entities") that implementing emission reduction projects and scenarios shall, based on carbon inclusive methodologies, account for the carbon inclusive emission reductions generated by the projects and scenarios and report the carbon inclusive emission reduction data to the municipal ecology and environment department. The use of blockchain, big data, and other information technologies for the accounting of carbon inclusive emission reductions is encouraged.

Implementing entities shall be responsible for the truthfulness, completeness, and accuracy of carbon inclusive emission reduction data and ensure data traceability. Data involving state secrets, trade secrets, or personal privacy shall be kept confidential in accordance with the law.

The municipal ecology and environment department shall verify the carbon inclusive emission reduction data reported by implementing entities, confirm the carbon inclusive emission reductions, and record them in the carbon inclusive management and operation platform. The municipal ecology and environment department may entrust legally established technical service agencies to provide technical review services.

Article 27 (Emission Reduction Utilization Methods)

Carbon inclusive emission reductions confirmed by the municipal ecology and environment department may be used for carbon emission allowance surrender or offset through voluntary offsetting or carbon point exchange.

Article 28 (Voluntary Offsetting)

Government organs, enterprises, public institutions, social organizations, and other entities may use carbon inclusive emission reductions to voluntarily offset the greenhouse gas emissions generated in their daily operations or production and business activities.

This Municipality promotes the use of voluntary offsetting by organizers of large-scale performances, events, conferences, exhibitions, and other large-scale activities to meet carbon neutrality requirements.

The specific management procedures for voluntary offsetting shall be formulated by the municipal ecology and environment department.

Article 29 (Carbon Point Exchange)

Carbon inclusive emission reductions generated by individuals participating in relevant emission reduction projects and scenarios may be converted into corresponding points based on carbon point exchange rules and used to exchange for relevant goods or services. The municipal ecology and environment department shall strengthen guidance on the formulation of carbon point exchange rules.

Carbon point exchange activities shall follow the principle of voluntariness. Government organs, enterprises, public institutions, social organizations, and other entities are encouraged to provide and expand carbon point exchange channels.

Chapter IV Trading Management

Article 30 (Trading System and Products)

This Municipality implements a carbon emission trading system, with carbon emission allowances as the trading product. The exploration and innovation of carbon emission trading-related products and derivatives are encouraged.

Carbon emission trading, as a public resource trading matter, shall be included in the unified public resource trading platform system of this Municipality.

This Municipality promotes the trading of such local voluntary greenhouse gas emission reductions as carbon inclusive emission reductions.

Article 31 (Trading Institutions)

The carbon emission trading institution of this Municipality is responsible for organizing the centralized and unified carbon emission trading and providing trading, settlement, and delivery services.

The carbon emission trading institution shall formulate carbon emission trading rules, specifying the conditions, rights and obligations, trading procedures, information disclosure, risk control, abnormal situation handling, and dispute resolution for trading entities.

The carbon emission trading institution shall establish a carbon emission trading information management system, publish trading information such as market conditions, trading volume, and trading amounts, and promptly disclose major information that may affect market trading.

Article 32 (Trading Entities)

Regulated units and other entities that meet the requirements may participate in carbon emission trading.

Staff of the ecology and environment department, other departments responsible for supervising and managing carbon emission trading and related activities, carbon emission allowance registration agencies, carbon emission trading institutions, and technical service agencies shall not participate in carbon emission trading.

Trading entities shall pay transaction fees when conducting trading activities. Transaction fees shall be reasonably set, and the fee items and standards shall be publicly announced by the carbon emission trading institution.

Article 33 (Trading Methods)

Carbon emission trading may be conducted through public bidding, agreement transfer, or other methods in compliance with national and municipal provisions.

No unit or individual may manipulate or disrupt the carbon emission trading market through fraud, malicious collusion, spreading false information, or other means.

Article 34 (Market Regulation)

The municipal ecology and environment department may, in conjunction with relevant departments, take measures such as reserve allowance auctions and allowance repurchases within the total carbon emission allowance to strengthen the regulation of the carbon emission trading market based on the economic and social development situation and greenhouse gas emission control targets of this Municipality. Specific procedures shall be formulated separately by the municipal ecological and environmental department in conjunction with the municipal finance department.

Chapter V Safeguards and Supervision

Article 35 (Policy Support)

This Municipality shall comprehensively use carbon emission management-related policy measures, strengthen resource coordination, and increase support for greenhouse gas emission reduction activities.

The funds for carbon emission allowance management, voluntary greenhouse gas emission reduction, and related trading activities shall be included in the fiscal budget in accordance with provisions.

This Municipality encourages the innovation of carbon finance to provide diversified carbon financial products and services for carbon emission trading and voluntary greenhouse gas emission reduction activities.

Article 36 (Cultivation of Technical Service Agencies)

This Municipality shall strengthen the cultivation of relevant technical service agencies, guide them to improve their technical capabilities and service levels, and provide technical review, evaluation, and consulting services for carbon emission management-related activities.

Article 37 (Industry Associations)

Relevant industry associations in this Municipality shall strengthen industry self-discipline, organize and guide member entities to participate in greenhouse gas emission reduction-related activities, and promote the promotion and application of green and low-carbon technologies.

Article 38 (Smart Regulation and Services)

The municipal ecology and environment department shall strengthen the digitalization and smartization of carbon emission management, rely on the Government Online-Offline Shanghai and Unified Online Government Service platforms and the big data resource platform, strengthen information sharing with relevant departments, optimize government services, promote business collaboration, and improve the smart management and service level of carbon emissions.

Article 39 (Promoting the Inclusion of Carbon Emissions in Environmental Impact Assessments)

This Municipality shall, in accordance with national provisions, promote the inclusion of carbon emissions in the environmental impact assessment system for construction projects, strengthen source control, and enhance the coordinated management of pollution reduction and carbon reduction.

Article 40 (Carbon Footprint Management)

This Municipality shall, in accordance with national provisions, establish a product carbon footprint management system, improve product carbon footprint standard measurement, data collection, evaluation certification, and professional services, and promote the construction of green and low-carbon supply chains.

Article 41 (Credit Management)

The municipal ecology and environment department shall, in conjunction with relevant departments, include relevant credit information of units and individuals in carbon emission management activities in the public credit information service platform of this Municipality in accordance with national and municipal provisions, and take credit incentive and disciplinary measures in accordance with the law.

Chapter VI Legal Liability

Article 42 (Handling of Violations by Regulated Units)

If a regulated unit commits any of the following acts, the municipal ecology and environment department shall order it to make corrections and impose a fine of not less than 50,000 yuan but not more than 300,000 yuan:

1. failure to formulate and implement a data quality control plan as required under Article 15 of these Measures;

2. failure to submit the annual emission report as required under Article 16, Paragraph 1 of these Measures;

3. failure to retain the original records and management ledgers related to the data in the annual emission report as required under Article 16, Paragraph 2 of these Measures.

If a regulated unit commits any of the following acts, the municipal ecology and environment department shall order it to make corrections and impose a fine of not less than 100,000 yuan but not more than 300,000 yuan; the directly responsible person in charge and other directly responsible person shall be fined not less than 50,000 yuan but not more than 100,000 yuan:

1. failure to account for greenhouse gas emissions as required under Article 15, Paragraph 2 of these Measures;

2. submission of an annual emission report with major defects or omissions, falsifying or forging data, using false data, or engaging in other fraudulent practices in the preparation of the annual emission report as required under Article 16, Paragraph 2 of these Measures.

If a regulated unit fails to fulfill its carbon emission allowance surrender obligation as required under Article 21, Paragraph 1 of these Measures, the municipal ecology and environment department shall order it to make corrections and impose a fine of not less than 200,000 yuan but not more than 300,000 yuan.

Article 43 (Handling of Violations by Technical Service Agencies)

If a technical service agency issues an annual emission report or technical review report with major defects or omissions, falsifies or forges data, uses false data, or engages in other fraudulent practices in the preparation of the annual emission report or technical review as required under Article 19, Paragraph 2 of these Measures, the municipal ecology and environment department shall order it to make corrections and impose a fine of not less than 200,000 yuan but not more than 300,000 yuan; the directly responsible person in charge and other directly responsible person shall be fined not less than 20,000 yuan but not more than 200,000 yuan.

Article 44 (Handling of Illegal Participation in Trading)

If staff of the ecology and environment department, other departments responsible for supervising and managing carbon emission trading and related activities, carbon emission allowance registration agencies, carbon emission trading institutions, or technical service agencies participate in carbon emission trading in violation of Article 32, Paragraph 2 of these Measures, the municipal ecological and environmental department shall order them to make corrections and may impose a fine of not less than 50,000 yuan but not more than  300,000 yuan; those who belong to state staff shall also be subject to disciplinary action in accordance with the law.

Article 45 (Handling of Market Manipulation or Disruption)

If a unit or an individual manipulates or disrupts the carbon emission trading market in violation of Article 33, Paragraph 2 of these Measures, the municipal ecology and environment department shall order them to make corrections and impose a fine of not less than 200,000 yuan but not more than 300,000 yuan. If a unit is penalized for such violations, the directly responsible person in charge and other directly responsible person shall be given a warning and fined not less than 50,000 yuan but not more than 200,000 yuan.

Article 46 (Other Provisions)

If a violation of these Measures results in illegal gains, such gains shall be confiscated in accordance with the Administrative Penalty Law of the People's Republic of China.

If a violation of these Measures causes damage to others, civil liability shall be borne in accordance with the law; if it constitutes a violation of public security management, public security penalties shall be imposed in accordance with the law; if it constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 47 (Administrative Liability)

If staff of the ecology and environment department or other relevant departments abuse their power, neglect their duties, or engage in malpractice, the directly responsible person in charge and other directly responsible person shall be subject to disciplinary action in accordance with the law.

Chapter VII Supplementary Provisions

Article 48 (Effective Date)

These Measures shall be effective as of April 1, 2025. The Interim Measures of Shanghai Municipality for Carbon Emission Management promulgated by Decree No. 10 of Shanghai Municipal People's Government on November 18, 2013, shall be repealed simultaneously.