ESG Policy Round-Up in China Jan-Aug 2022

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It is the second year of the Fourteenth Five-Year-Plan in China, and the country is on its path to mobilise all its resources to address the responsibilities it faces as the world’s largest carbon emitter. While policy is one of the key indicators to track the country’s progress on its commitments to hit peak emissions by 2030 and carbon neutrality by 2060, we are tracking these policy developments closely so that businesses and investors could gain a foresight to the transition risks and opportunities for their strategic planning.

2022 started as the first national carbon emission allowance (CEA) trading cycle ends in China. With power sector being the only included sector in the national CEA trading market and traded at a closing price of ¥54.22 (US$7.92) per metric ton. The latest CEA trading price is ¥58.50 (US$8.54) per metric ton (closing price on Aug 25, 2022). The much expected inclusion of additional key polluting industries are not available for the current trading cycle (2022) as reporting and validating carbon emissions for more sectors bears controversy over its lack of rigorous and standardised processes in addition to the current market climate. The upside is that the country has announced a working plan to develop a standardised carbon emissions statistical accounting system in 2023 to address the complications of emission factor databases and accounting methods for key products, greenhouse gas inventories, etc.

The fist half of 2022 sees over 200 policies, guidances, and working plans revealed by the national, provincial, and local governments. The list below shows the top 10 national ESG-related policies from Jan~Aug 2022. Contact us today for the full list of ESG-related policies followed by a list of provincial ESG-related policies in 2022 to day, and a list of major cities’ ESG-related or climate-related policies, such as Shanghai, Beijing, Huzhou, Shenzhen, and Tianjin.



If you would like to learn more about how these policies unfold and stay current with the latest ESG-related and climate-related policy development, please subscribe to our Global ESG Regulatory Watch and get a monthly update on these trends. Contact us via info@insights.com for the full-list!