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Last update: February 7, 2024

China's emissions trading criticized despite tightened rules

For the first time, aviation also appears in a political document on China's emissions trading. (Boris Roessler/dpa/Archivbild)
China has issued new rules to stabilize national emissions trading and prevent fraud.
Nico Beckert
Nico
Beckert
China's carbon trading system has been marked by repeated cases of fraud. Companies and consulting firms have forged emissions data and reports. The authorities have not sufficiently verified the reports and conditions at participating power plants. The penalties for falsification have so far been so low that fraud has been more lucrative than compliance and the purchase of carbon credits. "Penalties for non-compliance were ultimately just a business cost," says analyst Cory Combs from the consulting firm Trivium China. This paradox will be resolved by recently introduced stricter regulations.
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