China has approved a framework of interim regulations to standardize its carbon emissions trading systems, in a move to strengthen oversight and transparency of the world's largest market of this kind.

The framework, approved by China's State Council but yet to be published, will define the scope of the national carbon market, identify key companies with high emissions, and set rules for allocating emissions quotas, according to the environment ministry.

It will also provide guidelines on data quality control and trading operations.

China launched its national carbon market in 2021, covering around 4.5 billion tonnes of CO₂ emissions from the power sector annually, reported Chinese media. However, regional trading platforms have developed without unified rules.

The interim regulations state that no new regional markets should be established once the regulations have implemented, and existing ones should gradually integrate into the national market. But it remains unclear if this provision was retained in the final approved version.

Experts said China's carbon markets currently have fewer participants and trading mechanisms than more developed markets in Europe and elsewhere.

The regulations aim to "clarify basic principles and management requirements...strengthen supervision and emphasize information openness and transparency," Zhou Di, an expert on emissions standards, was cited by local media as said.

(Writing by Alex Guo  Editing by Harry Huo)
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