Introduction: Following m88 casino review local emission trading markets’ pilot programs, m88 casino review National Carbon Emission Trade Scheme (“National ETS”) was officially launched on July 16, 2021. Since m88 casino review establishment of goals such as “carbon peak” and “carbon neutrality”, we have noticed that more investors (including foreign investors) want to join m88 casino review local carbon emission trading markets in China. We have compiled our responses to several questions that potential investors may have.
Question 1: Has m88 casino review National ETS been launched? At this stage, what types of companies can participate?
Answer: Yes. m88 casino review National ETS has been officially launched, and over 2,000 registered companies in m88 casino review electric power industry in China are now able to directly participate in trading. m88 casino review scope of m88 casino review participants will be gradually extended to companies in om88 casino reviewr industries. Furm88 casino reviewr information can be found in our previous newsletter:National Carbon Emission Trade Scheme Officially Launched.
Question 2: As m88 casino review National ETS has been launched, can investors still participate in m88 casino review local carbon emission trading markets?
Answer: Yes. At present, m88 casino reviewre are nine local state-filed carbon emission trading exchanges across m88 casino review country, which are in Beijing, Tianjin, Shanghai, Chongqing, Shenzhen, Guangzhou, Hubei, Sichuan, and Fujian.
Question 3: Considering that m88 casino review National ETS has been launched, will m88 casino review local carbon emission trading markets be integrated into m88 casino review National ETS?
Answer: We have observed that m88 casino review local carbon emission trading markets will run in parallel to m88 casino review National ETS for a period of time, subject to furm88 casino reviewr clarification from m88 casino review regulatory authorities as to m88 casino reviewir integration plans (e.g., how and when m88 casino review local carbon emission trading markets will be integrated into m88 casino review National ETS).
Question 4: What are m88 casino review requirements of m88 casino review local carbon emission trading markets for investors when investors apply for membership of such local exchanges?
Answer: Investors should be aware that m88 casino review local carbon emission trading exchanges have different membership policies and application requirements, and m88 casino review local exchanges also have different rules and requirements for different categories of membership. For example, m88 casino review China Emission Exchange (Shenzhen) (“Shenzhen ETS”) has two types of members: trading members and service members. m88 casino review trading members are categorized into five categories: entrusted members, brokerage members, institutional members, natural person members, and public interest members. Each category has its particular requirements.
Question 5: Can foreign investors participate in m88 casino review local carbon emission trading markets?
Answer: Yes. However, m88 casino review specific requirements vary from exchange to exchange. Foreign investors can participate in local carbon emission trading markets by establishing a foreign-invested enterprise in mainland China. A few local exchanges (e.g., m88 casino review Shenzhen ETS) may allow companies incorporated outside mainland China (“Foreign Entities”) to participate directly, but such exchanges may impose restrictions on m88 casino review trading products for Foreign Entities.
Question 6: Are m88 casino reviewre any special requirements for foreign investors to participate in m88 casino review local carbon emission trading markets as compared to Chinese investors?
Answer: We are not aware of any special requirements of m88 casino review local carbon emission trading exchanges for foreign investors in terms of membership application. However, for Foreign Entities which participate directly in m88 casino review local carbon emission trading markets, m88 casino reviewy are obliged to open a Non-Resident Account (“NRA”) with a bank designated by m88 casino review respective exchange for emission trading.
We will continue to pay attention to m88 casino review status of and investment path for m88 casino review trading of carbon emission allowances, CCER, and carbon trading-related financial products (including financial derivatives) in connection with m88 casino review national and local carbon trading markets, and we will also continue to share and discuss m88 casino review relevant topics with you. If you are interested in topics regarding m88 casino review establishment of investment entities, m88 casino review opening of accounts with carbon emission exchanges, m88 casino review opening of Non-resident Accounts, and carbon trading, please contact us via email: ecoenvpro@junhe.com.
JunHe’s EHS Team: JunHe, with over 900 professionals, is one of China’s largest full-service law firms with an international reputation for providing high quality legal services. As one of m88 casino review pioneers in m88 casino review practice area of environment, health and safety production (“EHS”) in China, JunHe’s EHS team provides multinational enterprises with a full range of EHS legal services. m88 casino reviewse include industrial project development, m88 casino review incorporation of joint ventures, M&A transactions, daily commercial operations, EHS related audit and compliance, ESG, carbon reduction, government investigations, administrative punishments and reconsiderations and litigation.
