Authorities in China will crack down on carbon data fraud as they try to strengthen the nation’s ailing emissions trading system ahead of a planned expansion.
(Bloomberg) — Authorities in China will crack down on carbon data fraud as they try to strengthen the nation’s ailing emissions trading system ahead of a planned expansion.
The market, which currently includes more than 2,000 major power plants and covers more emissions than any other trading system, has been beset by low prices, thin liquidity and accusations of data fabrication.
Officials will improve statistics and accounting of carbon emissions “and crack down on data fraud,” the National Development and Reform Commission said in a report to the annual parliamentary gathering in Beijing on Sunday. The government also plans to integrate the carbon market with systems for trading renewable power to help increase clean energy investments, it said in the report.
Read more: Carbon Prices in Asia Are Too Cheap to Help Curb Emissions
China’s national market for emissions allowances, which suffered several delays before launching in 2021, is intended to be extended over the coming years to add more industries, with large aluminum and cement producers expected to be included from this year.
Inspections carried out in 2022 found inaccuracies with emissions data submitted by power plants, who have to pay for every ton of carbon dioxide they generate that exceeds an allocated amount. Four consulting firms which assist utilities with submissions have also faced criticism over alleged negligence or falsifying data.
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