Shanghai: Starting from 2026, the management threshold for high energy industries such as petrochemicals

Recently, Shanghai formulated and issued the "Action Plan for Comprehensive Deepening Reform of Shanghai Carbon Market (2026-2030)" (hereinafter referred to as the "Action Plan").

It is reported that the key tasks of the Action Plan are to focus on the three major actions of "implementing the improvement and efficiency of the carbon emission trading market", "implementing the guidance and incentive action for voluntary greenhouse gas emissions reduction", and "implementing the action to enhance the innovation capability of the carbon market". It proposes 16 key reform tasks, including establishing and improving the quota total management system, gradually expanding the market coverage in stages, optimizing the methodology of greenhouse gas emission accounting and reporting, steadily and orderly increasing the proportion of paid allocation, regulating the paid bidding and transfer mechanism of quotas, establishing and improving the system for greenhouse gas emission reporting and carbon market information release, promoting independent emission reduction of enterprises, improving the sustainable operation and management mechanism of carbon inclusiveness, continuously innovating the carbon inclusiveness incentive mechanism, promoting the implementation of large-scale event carbon neutrality, establishing and improving the carbon market guarantee and supervision system Enrich the carbon finance product and service system, innovate the synergy mechanism between carbon market and green finance market, vigorously cultivate technical service institutions, enrich the supply of professional talents in the market, and strengthen international and regional cooperation and exchanges.

Among them, in establishing and improving the quota total management system, the Action Plan mentions that the total amount of carbon emission quotas should be reasonably determined, and a sound reserve quota regulation mechanism should be established. Establish a carbon emission quota allocation system that is linked to the dual control system of total carbon emissions and intensity, pilot the implementation of quota total control for industries with relatively stable total carbon emissions, and reserve development space for strategic emerging industries and future industries.

In terms of gradually expanding market coverage in stages, the Action Plan clearly states that market expansion will be implemented according to the promotion method of "lowering barriers, expanding categories, and increasing types". Starting from 2026, the pipeline threshold for high energy industries such as petrochemicals and data centers will be lowered to 10000 tons of carbon dioxide equivalent per year, and the pipeline threshold for water transportation will be lowered to 80000 tons of carbon dioxide equivalent per year. Starting from 2028, public institutions such as universities and hospitals that emit 10000 tons or more of carbon dioxide equivalent annually will be included in market management and gradually implement carbon emission quota management. Research on incorporating non carbon dioxide greenhouse gases such as nitrous oxide and methane into market management.