China

The overall plan for the pilot program of the comprehensive reform of the market-based allocation of production factors (notice 51 of the State Office)

Executive

Plan

Passed in 2021

This plan defines the government's plan for the pilot program on a wide range of reforms of the market determinants of production factors. It notably establishes 1) a system of green accounting, 2) the concept of ecological products value realisation, and 3) environmental responsibility for public and private entities.

Section 24 of the document states that the government will support the creation of a "green factor trading mechanism". This would notably entail the trading of carbon emission rights, pollution discharge rights, energy use rights, water rights, etc. The government will also also explore other schemes, such as a paid-for-acquisition mechanism for carbon emission quotas and energy use rights indicators.

Documents

Link to full text of the notice on official website (Chinese)