# Australia: 208 big emitters must cut baselines 4.9% a year, settling the gap with ACCUs near A$38

_Last checked 2026-11-12 · https://asiacarbondesk.com/australia-safeguard-mechanism/_

Since the 2023 reform, Australia's Safeguard Mechanism lowers each large facility's emissions baseline by 4.9% a year to 2030. Facilities above their baseline surrender ACCUs or SMCs; in 2024–25 they handed in 13.4 million units. The generic ACCU spot price ended June 2026 at A$37.95, well under the A$87.72 cost containment price.

## Key facts

- Generic ACCU spot price: A$37.95 (end of Q2 2026 · A$36.28 at end of Q1)
- Cost containment price 2026–27: A$87.72 (per ACCU · rises at CPI + 2% a year)
- Baseline decline: 4.9% (a year to 30 June 2030; indicative 3.285% after)
- Covered facilities 2024–25: 208 (each over 100,000 tCO2e a year · 219 in 2023–24)
- Covered emissions 2024–25: 132.8 Mt (29.9% of national emissions · baselines 126.2 Mt)
- Units surrendered 2024–25: 13.4m (10.8m ACCUs + 2.6m SMCs)

## In brief

- Facilities emitting more than 100,000 tCO2e a year are covered: 208 in 2024–25, with 132.8 Mt of covered emissions, or 29.9% of Australia's total.
- Since 2023–24 baselines fall 4.9% a year to 2029–30; the 2023 Act caps net safeguard emissions at 1,233 Mt over 2020–30 and 100 Mt in 2029–30.
- For 2024–25, 141 facilities exceeded baselines by 13.7 Mt in total and surrendered 10.8 million ACCUs and 2.6 million SMCs; 98.6% complied by 1 April 2026.
- The generic ACCU spot price has stayed between A$30.75 and A$38.50 at quarter ends since mid-2022, far below the cost containment price of A$87.72 for 2026–27.

## Generic ACCU spot price at quarter end (A$ per ACCU)

| Period | A$/ACCU |
|---|---|
| Q2 2022 | 35.1 |
| Q3 2022 | 30.75 |
| Q4 2022 | 33.8 |
| Q1 2023 | 38.5 |
| Q2 2023 | 31.85 |
| Q1 2024 | 33.75 |
| Q2 2024 | 34.34 |
| Q3 2024 | 36.25 |
| Q1 2025 | 33.08 |
| Q2 2025 | 35.45 |
| Q3 2025 | 37.43 |
| Q4 2025 | 36.6 |
| Q1 2026 | 36.28 |
| Q2 2026 | 37.95 |

## Cost containment price for safeguard entities (A$ per ACCU)

| Period | A$/ACCU |
|---|---|
| 2023–24 | 75 |
| 2024–25 | 79.2 |
| 2025–26 | 82.68 |
| 2026–27 | 87.72 |

## ACCUs issued each calendar year (million)

| Period | million ACCUs |
|---|---|
| 2013 | 3.88 |
| 2014 | 7.62 |
| 2015 | 7.87 |
| 2016 | 13.13 |
| 2017 | 12.17 |
| 2018 | 12.44 |
| 2019 | 14.83 |
| 2020 | 16.05 |
| 2021 | 17.04 |
| 2022 | 17.74 |
| 2023 | 17.22 |
| 2024 | 18.78 |
| 2025 | 21.65 |

## Safeguard baselines vs covered emissions (MtCO2e)

| Period | Total baselines | Covered emissions |
|---|---|---|
| 2020–21 | 179.8 | 137.1 |
| 2021–22 | 175.6 | 137.5 |
| 2022–23 | 171.6 | 138.6 |
| 2023–24 | 136.1 | 136 |
| 2024–25 | 126.2 | 132.8 |

## ACCUs and SMCs surrendered for safeguard compliance, by calendar year (million)

| Period | million units |
|---|---|
| 2018 | 0.39 |
| 2019 | 0.14 |
| 2020 | 0.06 |
| 2021 | 0.12 |
| 2022 | 0.35 |
| 2023 | 0.24 |
| 2024 | 1.53 |
| 2025 | 10.08 |

## Baseline scaling factor after the 4.9% annual decline (% of starting baseline)

| Period | % of starting baseline |
|---|---|
| 2023–24 | 95.1 |
| 2024–25 | 90.2 |
| 2025–26 | 85.3 |
| 2026–27 | 80.4 |
| 2027–28 | 75.5 |
| 2028–29 | 70.6 |
| 2029–30 | 65.7 |
| 2030–31 | 62.4 |

## From the 2007 reporting law to the 2030 settings

| Date | Event |
|---|---|
| 2007-09-28 | National Greenhouse and Energy Reporting Act, the legal base of the Safeguard Mechanism, receives assent. |
| 2011-09-15 | Carbon Credits (Carbon Farming Initiative) Act, the legal base of ACCUs, receives assent. |
| 2016-07-01 | The Safeguard Mechanism begins. |
| 2023-04-11 | Safeguard Mechanism (Crediting) Amendment Act 2023 receives assent: SMCs and a 1,233 Mt budget for 2020–30. |
| 2023-07-01 | Reformed baselines begin falling 4.9% a year; cost containment price set at A$75 for 2023–24. |
| 2026-04-01 | 2024–25 compliance deadline: 205 of 208 facilities compliant. |
| 2026-04-15 | Regulator publishes 2024–25 data: 132.8 Mt covered emissions. |
| 2026-08-07 | Department releases its Safeguard Mechanism review consultation paper. |
| 2026-08-20 | ACCU Scheme amendments introduced to Parliament. |
| 2026-12 | Full September Quarter 2026 market report expected by mid-December. |
| 2030-07-01 | Review changes generally take effect; decline rates then set in 5-year blocks. |

## How a safeguard facility complies

| Step | What happens |
|---|---|
| Report emissions | Covered scope 1 emissions are reported under the NGER Scheme for each financial year. |
| Baseline is set | Production × emissions intensity, scaled down 4.9% a year since 2023–24. |
| Below baseline | The facility may apply for SMCs, 1 per tonne under its baseline, to sell or bank. |
| Above baseline | Before 1 April it surrenders ACCUs or SMCs, or uses a flexibility measure (TEBA, borrowing, multi-year period). |
| Price backstop | If the market is dearer, it can buy ACCUs from the government at A$87.72 (2026–27). |

## Who is covered

| Item | Rule |
|---|---|
| Threshold | More than 100,000 tCO2e of covered scope 1 emissions a year |
| Sectors | Mining, oil and gas, manufacturing, transport and waste |
| Facilities covered | 208 in 2024–25 (219 in 2023–24) |
| Share of national emissions | 29.9% (2024–25) |
| Electricity | Grid generators share one sectoral baseline of 198 MtCO2e a year |
| New facilities | Began all commercial production on or after 1 July 2023: best-practice or default intensity |
| Trade-exposed relief | Decline rate as low as 1% (manufacturing) or 2% for 3 years |
| Legal limits | 1,233 Mt net over 2020–30; 100 Mt in 2029–30; zero after June 2049 |

## ACCUs and SMCs at a glance

| Item | Status |
|---|---|
| ACCU | 1 unit per tCO2e stored or avoided by a registered project |
| SMC | 1 unit per tCO2e below a facility's baseline; not an offset |
| Surrendered for 2024–25 | 10.8m ACCUs + 2.6m SMCs by 139 facilities |
| SMCs issued for 2024–25 | 6.7 million, to 54 responsible emitters |
| Heavy ACCU users | Surrendering ACCUs ≥30% of baseline requires a public explanation (23 facilities in 2024–25) |
| Cost containment | A$87.72 per ACCU in 2026–27; 6.1m ACCUs held (30 Sep 2026) |
| ACCUs issued | 21.7m in 2025; 19.1m in January–September 2026 |
| Registry holdings | 68.9m ACCUs and 11.0m SMCs (30 Sep 2026) |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Coverage threshold | More than 100,000 tCO2e of covered (scope 1) emissions a year | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |
| Covered sectors | Mining, oil and gas production, manufacturing, transport and waste facilities | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |
| Scheme start date | 1 July 2016 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |
| National targets the scheme is aligned with | 43% below 2005 levels by 2030; net zero by 2050 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |
| Covered facilities, 2024–25 | 208 facilities (219 in 2023–24) | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Share of national emissions, 2024–25 | 29.9% of Australia's total emissions | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Covered emissions, 2024–25 | 132.8 MtCO2e, 2.3% less than 2023–24 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/safeguard-data) | 2026-11-12 |
| Total baselines, 2024–25 | 126.2 MtCO2e, 7.3% less than 2023–24 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/safeguard-data) | 2026-11-12 |
| Total net emissions, 2024–25 | 120.3 MtCO2e after ACCU and SMC surrenders (5.5% less than 127.3 Mt in 2023–24) | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Facilities above baseline and total excess, 2024–25 | 141 facilities; total excess 13.7 MtCO2e (9.2 Mt in 2023–24) | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Units surrendered for 2024–25 | 13.4 million: 10.8m ACCUs + 2.6m SMCs, by 139 facilities | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| SMCs issued for 2024–25 | 6.7 million (8.3 million for 2023–24), to 54 responsible emitters | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Compliance rate, 2024–25 | 205 of 208 facilities (98.6%) compliant on 1 April 2026 | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Facilities in excess on the deadline, 2024–25 | 3 facilities; 317,212 tCO2e in excess on 1 April 2026 | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| ACCU use above 30% of baseline | Facilities surrendering ACCUs ≥30% of baseline must explain; 23 facilities triggered this for 2024–25 | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Baseline decline rate to 2029–30 | 4.9% a year through to 30 June 2030 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) | 2026-11-12 |
| Indicative decline rate from 2030–31 | 3.285% a year (indicative; set in 5-year blocks from 1 July 2030) | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) | 2026-11-12 |
| Emissions reduction contribution table | Scaling factor 95.1% (2023–24) falling 4.9 points a year to 65.7% (2029–30), 62.4% from 2030–31 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) | 2026-11-12 |
| Trade-exposed (TEBA) decline rate | As low as 1% (manufacturing) or 2% (non-manufacturing) for 3 years | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| TEBA cost test | Compliance cost above 3% of revenue (non-manufacturing) or EBIT (manufacturing) | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| Borrowing adjustment | Borrow up to 10% of next year's baseline; next baseline cut by the amount plus 10% | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| Multi-year monitoring period | 2 to 5 years, ending no later than 30 June 2030 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| Civil penalty | 1 penalty unit per tonne of excess plus 100 penalty units a day for up to 2 years | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| Annual compliance deadline | Excess must be managed before 1 April | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) | 2026-11-12 |
| Electricity sectoral baseline | 198 MtCO2e a year for grid-connected generators collectively | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) | 2026-11-12 |
| New facilities definition | Facilities that began all commercial production on or after 1 July 2023 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) | 2026-11-12 |
| What an SMC is | 1 SMC = 1 tCO2e below a facility's baseline; tradeable; not an offset | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-mechanism-credit-units) | 2026-11-12 |
| What an ACCU is | 1 ACCU per tCO2e stored or avoided by a registered project | [Clean Energy Regulator](https://cer.gov.au/schemes/australian-carbon-credit-unit-scheme) | 2026-11-12 |
| Safeguard Mechanism (Crediting) Amendment Act 2023 assented | 11 April 2023 (Act No. 14, 2023) | [Federal Register of Legislation](https://www.legislation.gov.au/C2023A00014/asmade/text) | 2026-11-12 |
| Legislated decade budget 2020–30 | Net safeguard emissions no more than 1,233 MtCO2e in total, 1 July 2020 to 30 June 2030 | [Federal Register of Legislation](https://www.legislation.gov.au/C2023A00014/asmade/text) | 2026-11-12 |
| Legislated 2029–30 limit | No more than 100 MtCO2e of net safeguard emissions in 2029–30; zero after 30 June 2049 | [Federal Register of Legislation](https://www.legislation.gov.au/C2023A00014/asmade/text) | 2026-11-12 |
| NGER Act assented | 28 September 2007 (Act No. 175, 2007) | [Federal Register of Legislation](https://www.legislation.gov.au/C2007A00175/asmade/text) | 2026-11-12 |
| Carbon Credits (Carbon Farming Initiative) Act assented | 15 September 2011 (Act No. 101, 2011) | [Federal Register of Legislation](https://www.legislation.gov.au/C2011A00101/asmade/text) | 2026-11-12 |
| Cost containment price 2023–24 | A$75 per ACCU | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-march-quarter-2023/australian-carbon-credit-units-accus) | 2026-11-12 |
| Cost containment price 2024–25 | A$79.20 per ACCU | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2024/australian-carbon-credit-units-accus) | 2026-11-12 |
| Cost containment price 2025–26 | A$82.68 per ACCU | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2025/australian-environmental-markets) | 2026-11-12 |
| Cost containment price 2026–27 | A$87.72 per ACCU, rising at CPI + 2% a year | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| ACCUs held in the cost containment measure | 6.0 million (30 June 2026); 6.1 million (30 Sep 2026) | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| Generic ACCU spot price, end Q2 2022 | A$35.10 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2022/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q3 2022 | A$30.75 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2022/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q4 2022 | A$33.80 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-december-quarter-2022/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q1 2023 | A$38.50 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-march-quarter-2023/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q2 2023 | A$31.85 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2023/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q1 2024 | A$33.75 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-march-quarter-2024/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q2 2024 | A$34.34 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2024/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q3 2024 | A$36.25 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2024/australian-carbon-credit-units-accus) | 2026-11-12 |
| Generic ACCU spot price, end Q1 2025 | A$33.08 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-march-quarter-2025/safeguard-and-australian-carbon-credit-unit-accu-schemes) | 2026-11-12 |
| Generic ACCU spot price, end Q2 2025 | A$35.45 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2025/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price, end Q3 2025 | A$37.43 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-september-quarter-2025/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price, end Q4 2025 | A$36.60 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-december-quarter-2025/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price, end Q1 2026 | A$36.28 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-march-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price, end Q2 2026 | A$37.95 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price, 14 Aug 2026 | A$39.03 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| SMC spot price, 19 Jun 2026 | A$38.00 (A$39.25 on 14 Aug 2026) | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| Generic ACCU spot price peak, 2022 | A$57.50 all-time high, late January 2022 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-december-quarter-2022/australian-carbon-credit-units-accus) | 2026-11-12 |
| ACCUs issued, calendar 2013 | 3,877,980 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2014 | 7,621,505 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2015 | 7,867,836 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2016 | 13,133,396 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2017 | 12,170,406 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2018 | 12,438,219 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2019 | 14,830,105 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2020 | 16,052,805 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2021 | 17,040,782 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2022 | 17,738,059 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2023 | 17,221,108 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2024 | 18,784,758 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, calendar 2025 | 21,653,923 ACCUs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCUs issued, Jan–Sep 2026 | 19,139,145 ACCUs (Q1 5.46m, Q2 5.44m, Q3 8.24m) | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU issuance, first half 2026 | 10.9 million, a record for a first half; 2026 estimate 22–26 million | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| ACCU holdings in the registry, end of year | 6.1m (2019), 7.9m (2020), 11.5m (2021), 22.7m (2022), 36.2m (2023), 49.9m (2024), 60.7m (2025), 68.9m (30 Sep 2026) | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| SMC holdings, 30 Sep 2026 | 11.0 million SMCs; 63 safeguard accounts hold SMCs | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2018 | 389,893 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2019 | 143,843 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2020 | 56,994 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| Safeguard surrenders, calendar 2021 (ACCUs; SMCs not yet issued) | 121,579 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2022 | 348,535 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2023 | 236,224 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2024 | 1,526,091 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU+SMC safeguard surrenders, calendar 2025 | 10,079,598 units | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU Scheme projects registered, 2022 | 364 projects | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU Scheme projects registered, 2023 | 337 projects | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU Scheme projects registered, 2024 | 416 projects | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| ACCU Scheme projects registered, 2025 | 407 projects | [Clean Energy Regulator](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) | 2026-11-12 |
| Safeguard baselines, covered emissions and facility count, 2020–21 to 2024–25 | Baselines 179.8/175.6/171.6/136.1/126.2 Mt; covered emissions 137.1/137.5/138.6/136.0/132.8 Mt; facilities 212/219/218/219/208 | [Clean Energy Regulator](https://cer.gov.au/document/2024-25-safeguard-mechanism-data-insights) | 2026-11-12 |
| Safeguard Mechanism review consultation | Department paper released 7 Aug 2026; submissions closed 18 Sep 2026 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| Review outcome and timing of changes | Position paper early 2027; changes generally from 1 July 2030 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| Next full QCMR | Full September Quarter 2026 report expected by mid-December 2026 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports) | 2026-11-12 |
| Annual safeguard data publication | 2024–25 data published 15 April 2026 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/safeguard-data) | 2026-11-12 |
| ACCU Scheme amendments introduced | Amendments to the CFI Act introduced to Parliament on 20 August 2026 | [Clean Energy Regulator](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) | 2026-11-12 |
| 2023 reform | The Safeguard Mechanism was reformed in 2023 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |
| Scheduled 2026–27 review | Department to review policy settings in 2026–27 | [Clean Energy Regulator](https://cer.gov.au/schemes/safeguard-mechanism) | 2026-11-12 |

## FAQ

**What is the ACCU price in 2026?**

The generic ACCU spot price was A$37.95 at the end of June 2026, up from A$36.28 at the end of March, and reached A$39.03 on 14 August 2026, according to the Clean Energy Regulator.

**Who is covered by the Safeguard Mechanism?**

Facilities emitting more than 100,000 tCO2e of covered scope 1 emissions a year in mining, oil and gas, manufacturing, transport and waste: 208 facilities in 2024–25, covering 29.9% of national emissions.

**How fast do baselines fall?**

By 4.9% a year from 2023–24 to 2029–30, so a baseline is scaled to 65.7% of its starting level by 2029–30. After that the indicative rate is 3.285% a year. Trade-exposed facilities can get as little as 1–2% for three years.

**What is the cost containment price?**

A fixed price at which eligible safeguard entities can buy ACCUs from the government: A$75 in 2023–24, A$79.20 in 2024–25, A$82.68 in 2025–26 and A$87.72 in 2026–27, rising at CPI plus 2% a year.

**Is there a limit on using ACCUs?**

There is no hard cap, but a facility that surrenders ACCUs equal to 30% or more of its baseline must publish a statement explaining why it did not cut more on site. 23 facilities did so for 2024–25.

**What are SMCs?**

Safeguard Mechanism credit units are issued to facilities whose net emissions are below their baseline, one per tonne. 6.7 million were issued for 2024–25, and 2.6 million were surrendered.

**How well did facilities comply in 2024–25?**

205 of 208 facilities (98.6%) were compliant by the 1 April 2026 deadline; three related facilities were left with 317,212 tCO2e in excess.

**What happens next?**

The Government's review consultation closed on 18 September 2026; a position paper is due early next year, and any changes will generally take effect from 1 July 2030.

## Not listed yet

- Generic ACCU spot prices at the end of Q3–Q4 2023 and Q4 2024: official reports give only ranges or approximate, conflicting figures.
- The Q3 2026 quarter-end ACCU price: the full report is due by mid-December 2026.
- Department (DCCEEW) policy pages: the site did not respond to normal requests, so figures come from the regulator and the Act text.
- Generic ACCU spot price at end of Q3 2023, Q4 2023 and Q4 2024 — QCMRs give only ranges ('between $30.50 and $32.00') or conflicting approximations (Q4 2024 'around $36' in the December 2024 report vs 'around $35' in the March 2025 report). December Quarter 2023 report not opened.
- Generic ACCU spot price at end of Q3 2026 — The Q3 2026 data release workbook does not include price data; the full report is due by mid-December 2026.
- DCCEEW policy pages on the 2023 reforms — dcceew.gov.au did not respond to normal requests (connection reset / timeout). Facts were taken from CER pages and the Act text instead.
- Value of a Commonwealth penalty unit in A$ — Not on the CER pages read; not checked in legislation.
- Commencement date of the 2023 Amendment Act — Assent date (11 April 2023) confirmed; reformed baselines measured from 1 July 2023 per CER, but the Act's commencement table was not checked line by line.


---

# China: an ETS covering 3,680 companies and about 8.3 Gt of CO2, with allowances at CNY 97.90 at end-August 2026

_Last checked 2026-11-12 · https://asiacarbondesk.com/china-national-ets/_

China's national ETS started trading on 16 July 2021 with power plants and added steel, cement and aluminium in 2025. In 2026 it covers 3,680 companies and over 65% of national emissions. Allowances are free and tied to output, and companies may use CCER credits for up to 5% of what they owe.

## Key facts

- Allowance price, end-Aug 2026: CNY 97.90 (per tonne · +31.18% from end-2025 (CNY 74.63))
- Covered entities, 2026: 3,680 (power, steel, cement and aluminium)
- Covered emissions, 2026: ~8.3 Gt (CO2 a year · over 65% of national emissions)
- Allowances traded in 2025: 235 Mt (CNY 14.63 bn · average CNY 62.36/t)
- CCER offset limit: 5% (of allowances due)
- 2024 compliance rate: 99.99% (of 8.194 Gt due)

## In brief

- The national ETS opened on 16 July 2021 and closed its first year at CNY 54.22 per tonne. Allowances closed 2025 at CNY 74.63 and stood at CNY 97.90 at the end of August 2026.
- Steel, cement and aluminium joined the power sector in 2025. In 2026 the market covers 3,680 companies and about 8.3 Gt of CO2, over 65% of national emissions.
- Allowances are given free and tied to each company's output; there is no fixed cap. The government's goal is a cap-based market with free and paid allocation by 2030.
- Companies may cover up to 5% of what they owe with CCER credits. A company that fails to surrender now faces a fine of CNY 1–5 million, and then 5–10 times the market price for each missing allowance.

## Allowance closing price at year end, as published by MEE (CNY per tonne)

| Period | CNY/t |
|---|---|
| 2021 | 54.22 |
| 2023 | 79.42 |
| 2024 | 97.49 |
| 2025 | 74.63 |
| Aug 2026 | 97.9 |

## Allowances traded by reporting period (million tonnes)

| Period | Mt |
|---|---|
| 2021 (Jul–Dec) | 179 |
| 2022–23 | 263 |
| 2024 | 189 |
| 2025 | 235 |

## Year-end close and average traded price by reporting period (CNY per tonne)

| Period | Close at end of period | Average traded price |
|---|---|---|
| 2021 | 54.22 | 42.8 |
| 2022–23 | 79.42 | 65.62 |
| 2024 | 97.49 | 95.84 |
| 2025 | 74.63 | 62.36 |

## Companies covered by the ETS

| Period | entities |
|---|---|
| 2019-20 | 2,162 |
| 2021-22 | 2,257 |
| 2023 | 2,096 |
| 2025 | 3,378 |
| 2026 | 3,680 |

## Cumulative allowances traded since July 2021 (million tonnes)

| Period | Mt |
|---|---|
| End-2021 | 179 |
| End-2023 | 442 |
| End-2024 | 630 |
| End-2025 | 865 |
| End-Aug 2026 | 961 |

## Value of allowances traded by reporting period (CNY billion)

| Period | CNY bn |
|---|---|
| 2021 (Jul–Dec) | 7.661 |
| 2022–23 | 17.258 |
| 2024 | 18.114 |
| 2025 | 14.63 |

## From the 2021 launch to the 2030 target

| Date | Event |
|---|---|
| 2021-02-01 | MEE's interim trading rules take effect, allowing CCER offsets up to 5%. |
| 2021-07-16 | The national ETS starts online trading with the power sector. |
| 2021-12-31 | First compliance cycle ends: 179 Mt traded, closing price CNY 54.22. |
| 2024-01-22 | The national CCER voluntary credit market opens. |
| 2024-05-01 | The State Council's Interim Regulations on carbon trading take effect. |
| 2025-03-20 | Steel, cement and aluminium are brought into the ETS. |
| 2025-07-16 | First one-way auctions held on the exchange. |
| 2025-12-31 | 2025 ends with 235 Mt traded and a closing price of CNY 74.63. |
| 2026-08-08 | Interim Regulations revised; a CNY 1–5 million fine for failing to surrender is added. |
| 2026-09-02 | Allocation plan issued for power (2025–26) and steel, cement, aluminium (2026). |
| 2026-12-31 | Deadline to surrender 2025 allowances in all four sectors. |
| 2027 | Target: the ETS covers the main industrial emitting sectors. |
| 2030 | Target: a cap-based market with free and paid allocation. |

## How a compliance year works

| Step | What happens |
|---|---|
| Listed | Companies emitting 26,000 tCO2e or more a year directly are put on provincial lists, published by 31 October. |
| Measure and report | Emissions data are logged monthly on the national platform; the annual report is checked by the province. |
| Receive free allowances | Allowances are set from output and a benchmark; there is no fixed total cap. |
| Trade | Companies buy or sell on the national exchange; CCER credits can cover up to 5% of what is owed. |
| Surrender by 31 December | 2025 allowances are due by 31 December 2026. Failing to surrender brings a CNY 1–5 million fine, then 5–10 times the market price. |

## Who and what is covered

| Item | Rule |
|---|---|
| Threshold | 26,000 tCO2e of direct emissions a year |
| Sectors | Power (since 2021); steel, cement, aluminium (from 2025) |
| Companies, 2025 | 3,378: power 2,087; steel 232; cement 962; aluminium 97 |
| Companies, 2026 | 3,680, about 8.3 GtCO2, over 65% of national emissions |
| Gases | CO2; also CF4 and C2F6 in the new sectors |
| Next in line | Petrochemicals, chemicals, paper, civil aviation (preparation started) |
| Allocation | Free, tied to output; no fixed total cap. Paid allocation to be phased in |
| New sectors, 2024 | Allowances equal to verified emissions |
| New sectors, 2025 | Surplus or deficit limited to ±3% per company |
| Power, 2024 | Shortfall capped at 20% per company |
| 2026–2030 goal | Emissions per unit of product down about 3% in covered sectors |

## CCER credits at a glance

| Item | Status |
|---|---|
| Offset limit | Up to 5% of allowances due |
| Market opened | 22 January 2024 |
| Used for 2021–22 compliance | 3.72 Mt |
| Used for 2023 compliance | 6.47 Mt by 58 companies |
| First day of new credits (March 2025) | 0.75 Mt at an average CNY 80.45/t |
| Traded in 2025 | 8.84 Mt, CNY 626 million, average CNY 70.76/t |
| Registered by end-August 2026 | 41 projects, 24.23 Mt |
| Average price to end-August 2026 | CNY 86.51/t |
| Methodologies published in 2025 | 12 |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| National ETS online trading launch | 16 July 2021 (power sector first) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| MEE trading rules (Order No. 19) in force | 1 February 2021 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/gzk/gz/202112/P020211213372253773271.pdf) | 2026-11-12 |
| Interim Regulations adopted by State Council | 5 January 2024 (Decree No. 775) | [State Council of the PRC (gov.cn)](https://www.gov.cn/zhengce/zhengceku/202402/content_6930138.htm) | 2026-11-12 |
| Interim Regulations in force | 1 May 2024 | [State Council of the PRC (gov.cn)](https://www.gov.cn/zhengce/zhengceku/202402/content_6930138.htm) | 2026-11-12 |
| Interim Regulations revised | 8 August 2026 (State Council decision amending administrative regulations) | [Ministry of Ecology and Environment (MEE), reproducing the State Council text](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) | 2026-11-12 |
| CCER (voluntary) market launch | 22 January 2024 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/hdjl/cjwt/202509/t20250915_1130182.shtml) | 2026-11-12 |
| Steel, cement and aluminium work plan issued | 20 March 2025 (Huanqihou [2025] No. 23) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk03/202503/t20250326_1104736.html) | 2026-11-12 |
| Central policy opinion on the carbon market | dated 24 May 2025; targets for 2027 and 2030 | [General Offices of the CPC Central Committee and the State Council (posted by MEE)](https://www.mee.gov.cn/zcwj/zyygwj/202508/t20250825_1126119.shtml) | 2026-11-12 |
| 2030 target design | Cap-based market with free and paid allocation by 2030 | [General Offices of the CPC Central Committee and the State Council (posted by MEE)](https://www.mee.gov.cn/zcwj/zyygwj/202508/t20250825_1126119.shtml) | 2026-11-12 |
| Allocation plan for 2025-26 (power) and 2026 (steel, cement, aluminium) | Dated 1 September 2026; issued 2 September 2026 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk03/202609/t20260903_1165029.html) | 2026-11-12 |
| Surrender deadline for 2025 allowances | 31 December 2026 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202602/t20260209_1143900.html) | 2026-11-12 |
| Deadline to publish 2027 covered-entity lists | 31 October 2026 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202602/t20260209_1143900.html) | 2026-11-12 |
| First compliance cycle: volume and value (Jul-Dec 2021) | 179 Mt; CNY 7.661 bn; 114 trading days | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| Closing price, 31 Dec 2021 | CNY 54.22/t (+13% from opening) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| Allowance trading 2024: volume and value | 189 Mt; CNY 18.114 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| Closing price, end-2024 | CNY 97.49/t (+22.75% vs end-2023) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| 2024 price milestones | First close above CNY 100/t on 24 Apr 2024; 2024 peak CNY 105.65/t on 13 Nov | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| Allowance trading 2025: volume and value | 235 Mt (about +24%); CNY 14.630 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Closing price, end-2025 | CNY 74.63/t | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Average traded price 2025 | CNY 62.36/t | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Cumulative allowance trading to 31 Dec 2025 | 865 Mt; CNY 57.663 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Trading days in 2025 | 243 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Closing price, end-August 2026 | CNY 97.90/t (+31.18% vs end-2025) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Cumulative allowance trading to end-August 2026 | 961 Mt; CNY 65.699 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Trading growth Jan-Aug 2026 | Volume +46.53%, value +67.64% year on year | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Trading methods 2024 | Listed agreement 37 Mt; block agreement 152 Mt | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| One-way auctions | First 3 auctions on 16 Jul 2025 (0.13 Mt); 9 auctions and 0.338 Mt by end-Aug 2026 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Covered entities that traded in 2024 | 1,471 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| First compliance cycle coverage (2019-2020 allowances) | 2,162 power entities; about 4.5 GtCO2 a year | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| Second cycle coverage (2021-2022) | 2,257 entities; about 5.1 GtCO2e a year | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| 2023 compliance year coverage | 2,096 power entities; about 5.2 GtCO2 a year | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| Covered entities, 2025 | 3,378 (power 2,087; steel 232; cement 962; aluminium 97) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Covered entities and emissions, 2026 | 3,680 entities; about 8.3 GtCO2; over 65% of national emissions | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Share of national CO2 covered | Power alone about 40%; over 60% after adding steel, cement, aluminium | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/zbft/202503/t20250326_1104767.shtml) | 2026-11-12 |
| Size of first expansion | About 1,500 new companies; about 3 GtCO2 added | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/zbft/202503/t20250326_1104767.shtml) | 2026-11-12 |
| Gases covered in steel, cement and aluminium | 3: CO2, CF4, C2F6 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Inclusion threshold | 26,000 tCO2e of direct emissions a year | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202602/t20260209_1143900.html) | 2026-11-12 |
| Next sectors in preparation | Petrochemicals, chemicals, paper, civil aviation | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Allocation method | Free allocation, moving gradually to a mix of free and paid | [Ministry of Ecology and Environment (MEE), reproducing the State Council text](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) | 2026-11-12 |
| Intensity-based design | Allowances tied to output; no absolute cap set | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Steel, cement, aluminium: 2024 allocation | Allowances equal to verified 2024 emissions (no shortfall) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/zbft/202503/t20250326_1104767.shtml) | 2026-11-12 |
| Steel, cement, aluminium: 2025 surplus/deficit cap | Each entity within ±3% | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| Phasing for new sectors | Start-up phase 2024-2026; deepening phase from 2027 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/zbft/202503/t20250326_1104767.shtml) | 2026-11-12 |
| Power sector 2024: shortfall cap | Entity shortfall capped at 20% | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| 2021 and 2022 allocation vs verified emissions | Issued 5.096 Gt and 5.104 Gt; verified 5.094 Gt and 5.091 Gt | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| 2023 allocation vs verified emissions | Issued 5.215 Gt; required 5.244 Gt; gap 0.55% | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| Five-year target 2026-2030 | Unit-product emissions in covered sectors down about 3% | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| First cycle compliance rate | 99.5% (by volume) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| Compliance rates for 2021 and 2022 allowances | 99.61% and 99.88% | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| 2023 compliance year | Surrender due 5.244 Gt; about 99.98% completed | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| 2024 compliance year | Surrender due 8.194 Gt; about 99.99% completed | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Penalty for failing to surrender (revised text) | CNY 1-5 million fine; if still not surrendered, 5-10x the prior month's average price per missing allowance | [Ministry of Ecology and Environment (MEE), reproducing the State Council text](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) | 2026-11-12 |
| Penalty for failing to surrender (original 2024 text) | 5-10x the prior month's average price; refusal: equal cut to next year's allowances | [State Council of the PRC (gov.cn)](https://www.gov.cn/zhengce/zhengceku/202402/content_6930138.htm) | 2026-11-12 |
| Penalty for falsified emissions data | Fine CNY 0.5-2 million (or 5-10x illegal gains); refusal: 50-100% cut to next year's allowances | [Ministry of Ecology and Environment (MEE), reproducing the State Council text](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) | 2026-11-12 |
| Record keeping | Original data records kept at least 5 years | [Ministry of Ecology and Environment (MEE), reproducing the State Council text](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) | 2026-11-12 |
| CCER offset limit | Up to 5% of allowances due | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/gzk/gz/202112/P020211213372253773271.pdf) | 2026-11-12 |
| CCER used for 2021-2022 compliance | 3.7174 Mt | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| CCER used for 2023 compliance | 6.4727 Mt by 58 entities | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| First trading of new CCERs (March 2025) | 0.7488 Mt on day one at an average CNY 80.45/t | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) | 2026-11-12 |
| CCER trading 2025 | 8.8441 Mt; CNY 626 m | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| CCER average price 2025 | CNY 70.76/t | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| CCER registered by end-2025 | 33 projects; 17.7637 Mt | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| CCER registered by end-August 2026 | 41 projects; 24.2335 Mt; cumulative trading 21.7068 Mt (CNY 1.737 bn) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| CCER average price to end-August 2026 | CNY 86.51/t | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) | 2026-11-12 |
| CCER methodologies published in 2025 | 12 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Registry accounts (CCER registry) | 6,106 | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) | 2026-11-12 |
| Average price, Jul-Dec 2021 (calc) | CNY 42.80/t = 7,661 / 179 (f14) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) | 2026-11-12 |
| Average price 2024 (calc) | CNY 95.84/t = 18,114 / 189 (f21) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| Closing price at end-2023 | CNY 79.42/t (+46.48% vs first-cycle close) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| Second-cycle allowance trading, 1 Jan 2022 to 31 Dec 2023: volume and value | 263 Mt; CNY 17.258 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| Cumulative allowance trading to end-2023 | 442 Mt; CNY 24.919 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |
| Cumulative allowance trading to end-2024 | 630 Mt; CNY 43.033 bn | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) | 2026-11-12 |
| Average price 2022-2023 (calc) | CNY 65.62/t = 17,258 / 263 (f78) | [Ministry of Ecology and Environment (MEE)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) | 2026-11-12 |

## FAQ

**What is the carbon price in China's national ETS?**

Allowances closed 2025 at CNY 74.63 per tonne, with a 2025 average of CNY 62.36. At the end of August 2026 the closing price was CNY 97.90, up 31.18% from the end of 2025.

**Which sectors does China's ETS cover?**

Power since July 2021, and steel, cement and aluminium since 2025. In 2026 that is 3,680 companies and about 8.3 Gt of CO2, over 65% of national emissions. Preparation has started for petrochemicals, chemicals, paper and civil aviation.

**Does China's ETS have a cap?**

Not a fixed one. Allowances are free and tied to each company's output against a benchmark. The 2025 policy opinion aims for a cap-based market with free and paid allocation by 2030.

**Can companies use carbon credits in China's ETS?**

Yes, CCER credits for up to 5% of the allowances they owe. 6.47 Mt of CCERs were used for the 2023 compliance year.

**What happens if a company does not surrender enough allowances?**

Under the regulations as revised on 8 August 2026, it is ordered to fix it and fined CNY 1–5 million. If it still fails, it is fined 5–10 times the previous month's average price for each missing allowance and may be ordered to stop production.

**How much is traded?**

235 Mt of allowances worth CNY 14.63 billion in 2025, about 24% more than in 2024. By the end of August 2026, 961 Mt had been traded in total since 2021.

**When is the next compliance deadline?**

31 December 2026, for 2025 allowances in all four sectors.

**How many companies actually comply?**

About 99.99% of the 8.194 Gt due for 2024 was surrendered on time, up from 99.5% in the first cycle (2019–2020 allowances).

## Not listed yet

- A daily allowance price: daily prices come from the trading exchange, which we do not republish. The latest government figure is end-August 2026.
- Total allowances allocated for 2024–2026 in tonnes: the 2026 allocation plan's annex was not read.
- A price floor or ceiling: none was found in the official documents read.
- The share of allowances sold rather than given free: paid allocation is a stated goal, with no figure published.
- Latest daily price (November 2026) — The newest exchange daily bulletin we could locate and read is 13 August 2026; later bulletins were not found. www.cneeex.com earlier returned HTTP 420 (bot block), not bypassed.
- Separate allowance volume for 2022 and 2023 from MEE — MEE publishes cycle totals; single-year 2022 and 2023 figures are not shown, because only government figures are listed here.
- Total allowances allocated for 2024-2026 in tonnes — The 2026 allocation plan page was read only for its title and date; the plan's annex was not read.
- Price floor or ceiling — No official floor or ceiling found in the documents read.
- Share of paid (auctioned) allocation — Paid allocation is a stated goal; no auction volume or share for primary allocation was found.


---

# Hong Kong: no carbon tax or ETS, only HKEX's voluntary Core Climate marketplace, settled in Hong Kong dollars and renminbi

_Last checked 2026-11-13 · https://asiacarbondesk.com/hong-kong-core-climate/_

Hong Kong has no compliance carbon price. Its carbon market is Core Climate, a voluntary international marketplace run by HKEX since 28 October 2022, where companies buy, settle and retire Verra and Gold Standard credits in Hong Kong dollars or renminbi. The Government counted more than 130 participants in March 2026; prices and transaction values are not disclosed.

## Key facts

- Compliance carbon price: None (no ETS or carbon tax confirmed)
- Registered participants: >130 (March 2026 · Government figure · 100 at end-2024)
- Projects on the platform: >60 (end-2025 · forestry, solar, wind, biomass)
- Credit standards: 2 (Verra VCS; Gold Standard VERs from 1 Aug 2024)
- Settlement currencies: 2 (Hong Kong dollar and renminbi)
- 2035 target: −50% (emissions vs 2005; neutrality before 2050)

## In brief

- Hong Kong has no emissions trading scheme or carbon tax; in 2018 the Government said it was not yet in a position to set up its own carbon trading market, and in March 2022 it backed a voluntary, on-exchange market instead.
- HKEX launched Core Climate on 28 October 2022. Companies register as participants, then buy, settle, hold and retire certified credits there, paying in Hong Kong dollars or renminbi. Verra VCS credits are offered from launch and Gold Standard VERs since 1 August 2024.
- The Government reported 100 registered participants at end-2024 and over 130 in March 2026, with over 60 projects on the platform at end-2025. It says prices and transaction values cannot be disclosed because they are commercially sensitive.
- Links with mainland China are at the pilot stage, under MOUs with Guangzhou, Shenzhen and Macao exchanges. Hong Kong's own target is to halve emissions from the 2005 level before 2035; 2024 emissions were 33.2 million tCO2e.

## Core Climate registered participants, Government figures

| Period | participants |
|---|---|
| End-2024 | 100 |
| Mar 2026 | 130 |

## Hong Kong total greenhouse gas emissions and the 2035 target (ktCO2e)

| Period | Total GHG emissions |
|---|---|
| 2005 | 42,800 |
| 2006 | 43,700 |
| 2007 | 44,200 |
| 2008 | 42,700 |
| 2009 | 43,300 |
| 2010 | 41,800 |
| 2011 | 43,400 |
| 2012 | 43,600 |
| 2013 | 44,800 |
| 2014 | 45,600 |
| 2015 | 42,100 |
| 2016 | 42,300 |
| 2017 | 41,500 |
| 2018 | 42,100 |
| 2019 | 41,300 |
| 2020 | 34,900 |
| 2021 | 36,300 |
| 2022 | 34,600 |
| 2023 | 34,500 |
| 2024 | 33,200 |

## From 'not ready' to a voluntary market

| Date | Event |
|---|---|
| 2018-12-12 | Government says Hong Kong is not yet in a position to set up its own carbon trading market. |
| 2021-10-08 | Climate Action Plan 2050: halve emissions from 2005 before 2035; carbon neutrality before 2050. |
| 2022-03 | Steering group backs an on-exchange voluntary carbon market; HKEX signs an MOU with China Emissions Exchange. |
| 2022-07 | HKEX forms the Hong Kong International Carbon Market Council. |
| 2022-10-28 | HKEX launches Core Climate, with Verra VCS credits. |
| 2023-10 | HKEX signs an MOU with Shenzhen Green Exchange. |
| 2024-08-01 | Gold Standard VERs become tradable alongside Verra VCS. |
| 2025 | HKMA and HKEX complete a tokenised carbon credit test under Project Ensemble. |
| 2025-09-23 | MOU with three Greater Bay Area carbon exchanges. |
| 2026-03 | Government reports over 130 registered participants. |
| 2035 | Target: emissions half the 2005 level. |
| 2050 | Target: carbon neutrality. |

## How a purchase works on Core Climate

| Step | What happens |
|---|---|
| Join | A company registers as a participant (over 130 by March 2026). |
| Choose credits | Pick from certified projects verified under Verra VCS or Gold Standard. |
| Trade or settle | Buy on the platform, or use it to settle a deal agreed bilaterally. |
| Pay in HKD or RMB | Settlement in Hong Kong dollars or renminbi. |
| Hold or retire | Credits are held in custody or retired against the buyer's own climate claims. |

## Carbon pricing in Hong Kong

| Item | Status |
|---|---|
| Emissions trading scheme | None. 2018: 'not yet in a position' to set up its own |
| Carbon tax | None confirmed in official texts |
| Carbon market policy | Voluntary carbon market on exchange (March 2022 assessment) |
| Core Climate | Voluntary international marketplace run by HKEX |
| 2035 target | Halve emissions from the 2005 level |
| Long-term target | Carbon neutrality before 2050 |
| 2024 emissions | 33.2 MtCO2e; 4.41 t per person; −27% from the 2014 peak |
| Main sources (2024) | Electricity 61%, transport 18%, waste 8% |

## Credits on Core Climate

| Item | Detail |
|---|---|
| Standards | Verra VCS since launch; Gold Standard VERs from 1 Aug 2024 |
| Unit | 1 credit = 1 tonne CO2 |
| Project types | Forestry, solar, wind, biomass in Asia, South America and Africa |
| Settlement currency | Hong Kong dollar and renminbi |
| Mainland links | MOU with Guangzhou, Shenzhen and Macao carbon exchanges (23 Sep 2025) |
| Cross-boundary settlement | Pilot to be completed within 2026 |
| Tokenised credits | Test completed in 2025 by HKMA and HKEX (Project Ensemble) |
| Prices | Not disclosed: wide price range, commercially sensitive |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Core Climate launch date | 28 October 2022 | [Hong Kong Exchanges and Clearing Limited (HKEX)](https://www.hkex.com.hk/News/News-Release/2022/221028news?sc_lang=en) | 2026-11-12 |
| Participants, end-2024 (Government) | 100 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| Projects on the platform, end-2025 | Over 60 carbon reduction projects | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Cumulative traded volume, as of March 2026 | Exceeded 1 million tonnes | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Registered participants, as of March 2026 | Over 130 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Disclosure of transaction values | Nominal volumes and transaction information not disclosed (commercially sensitive; very wide price range) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Settlement currencies | 2 currencies: Hong Kong dollar (HKD) and Renminbi (RMB) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Credit standard at launch | Verra Verified Carbon Standard (VCS); all projects verified against it (Nov 2022) | [HKEX](https://www.hkex.com.hk/News/News-Release/2022/2211242news?sc_lang=en) | 2026-11-12 |
| Gold Standard VERs added | GS-VERs tradable from 1 August 2024 | [HKEX](https://www.hkex.com.hk/News/News-Release/2024/240801news?sc_lang=en) | 2026-11-12 |
| Unit size of a GS-VER | 1 tonne of CO2 per credit | [HKEX](https://www.hkex.com.hk/News/News-Release/2024/240801news?sc_lang=en) | 2026-11-12 |
| Project types and regions | Forestry, solar, wind, biomass projects in Asia, South America and Africa | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Hong Kong International Carbon Market Council formed | July 2022 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| GBA exchanges MOU | Signed 23 Sep 2025 with 3 exchanges: Guangzhou Emissions Exchange, Shenzhen Green Exchange, Macao International Carbon Emission Exchange | [HKEX](https://www.hkex.com.hk/News/News-Release/2025/250923news?sc_lang=en) | 2026-11-12 |
| Cross-boundary settlement pilot target | Pilot to be completed within 2026 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| GEC pilot trading target | Pilot trading of GECs in Hong Kong in 2026 | [HKSAR Government](https://www.info.gov.hk/gia/general/202609/16/P2026091600281.htm) | 2026-11-12 |
| Tokenised carbon credit test (Project Ensemble) | Completed in 2025 by HKMA and HKEX | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Co-operation countries named in 2026 Policy Address | 3: Brazil, Malaysia, Kazakhstan | [HKSAR Government](https://www.info.gov.hk/gia/general/202609/16/P2026091600281.htm) | 2026-11-12 |
| Compliance carbon trading market (2018 position) | Steering Committee on Climate Change: Hong Kong not yet in a position to set up its own carbon trading market | [HKSAR Government, Secretary for the Environment](https://www.info.gov.hk/gia/general/201812/12/P2018121200199.htm) | 2026-11-12 |
| Policy direction (March 2022 feasibility assessment) | Develop a centralised, on-exchange voluntary carbon market (2022 target, as worded in the official reply) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| Government description of Core Climate (2026) | Voluntary international carbon marketplace run by HKEX | [HKSAR Government, Financial Secretary](https://www.info.gov.hk/gia/general/202603/26/P2026032600301p.htm) | 2026-11-12 |
| First carbon futures ETF listed on HKEX | 23 March 2022 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| 2035 interim target | Halve carbon emissions from the 2005 level before 2035 (-50%) | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Carbon neutrality target | Before 2050 | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Climate spending planned (CAP2050) | About HK$240 billion over the next 15-20 years | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Renewable energy share target in power mix | 7.5%-10% by 2035, 15% subsequently | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Total GHG emissions 2024 | About 33.2 million tCO2e (-3.6% vs 2023) | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Per capita emissions 2024 | 4.41 tCO2e per person | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Largest emission source 2024 | Electricity generation 61%, transport 18%, waste 8% | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Change since 2014 peak (2024) | Total emissions down about 27% | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Total GHG emissions 2005 (baseline year) | 42,800 ktCO2e | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Total GHG emissions 2014 (peak) | 45,600 ktCO2e | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Annual GHG emissions table 2005-2024 | Total GHG emissions by year, ktCO2e (AR5 GWP) | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Implied 2035 emissions level | About 21,400 ktCO2e = 50% (f41) x 42,800 (f49) | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| 2024 emissions vs 2005 | About -22.4% = 33,200 (f51 table) / 42,800 (f49) - 1 | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Climate Action Plan 2050 review | Review result expected in 2026 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| Climate Action Plan 2050 announced | 8 October 2021 | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| HKEX - Shenzhen Green Exchange MOU | October 2023 | [HKEX](https://www.hkex.com.hk/News/News-Release/2026/261014news?sc_lang=en) | 2026-11-12 |
| HKEX - China Emissions Exchange (Guangzhou) MOU | March 2022 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| Earlier target (CAP2030+, 2017) | Carbon intensity -65% to -70% by 2030 vs 2005 (= total -26% to -36%) | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |

## FAQ

**Does Hong Kong have a carbon tax or an emissions trading scheme?**

No. No official text confirms a carbon tax or ETS. In 2018 the Government said Hong Kong was not yet in a position to set up its own carbon trading market; its March 2022 assessment recommended a voluntary carbon market instead.

**What is Core Climate?**

A voluntary international carbon credit marketplace run by HKEX, launched on 28 October 2022. Companies buy, settle, hold and retire certified credits there, in Hong Kong dollars or renminbi.

**Are Core Climate prices or volumes published?**

No price or volume series is published. The Government says transaction values cannot be disclosed because prices vary widely and the information is commercially sensitive.

**How many companies take part?**

Over 130 registered participants as of March 2026, up from 100 at the end of 2024, according to the Government.

**Which credits can be traded?**

Credits verified under Verra's VCS, and Gold Standard VERs since 1 August 2024, from over 60 projects (end-2025) in forestry, solar, wind and biomass. Each credit is 1 tonne of CO2.

**Is Core Climate linked to mainland China's carbon markets?**

Pilots only so far. HKEX signed an MOU with three Greater Bay Area exchanges on 23 September 2025, and in October 2026 it began pilots in Shenzhen allowance settlement and green electricity certificate trading. The Government aims to complete the settlement pilot within 2026.

**What is Hong Kong's emissions target?**

Halve emissions from the 2005 level before 2035 and reach carbon neutrality before 2050. Emissions were 33.2 million tCO2e in 2024, about 27% below the 2014 peak.

## Not listed yet

- Prices and transaction values on Core Climate: the Government says they cannot be disclosed.
- Annual or monthly Core Climate volumes: not published.
- Core Climate fees and rulebook: behind the platform login.
- Official traded price or transaction value on Core Climate — Government reply (LCQ21, 18 Mar 2026) says nominal volumes and transaction information cannot be disclosed; no HKEX price series found.
- Compliance carbon price (ETS or carbon tax) in Hong Kong — No official statement found that Hong Kong has or has legislated an ETS or carbon tax; the 2018 Government position was that it was not yet in a position to set up its own carbon trading market.
- Annual or monthly Core Climate trading volume — HKEX publishes no annual/monthly Core Climate statistics in the releases and results reports read; only cumulative figures for Nov 2022 and Mar 2026.
- Core Climate fees and trading rules — The Core Climate rulebook/fee schedule is behind the platform login; not read.
- Results of the 2026 review of the Climate Action Plan 2050 — Review was expected in 2026; no published result found as of 12 Nov 2026.
- Exact participant count at end-2024 — Only the Government figure is shown: 100 by end-2024 (LCQ20, 2025). Counts published by the exchange are not republished here.


---

# India: 490 plants have emission-intensity targets, but no carbon credit has traded yet

_Last checked 2026-11-12 · https://asiacarbondesk.com/india-ccts/_

India's Carbon Credit Trading Scheme sets each plant a greenhouse gas intensity target per tonne of product. Plants that beat it earn tradable credits; plants that miss it must buy them. Targets now cover 490 entities, and the trading rules are in place, but trading is expected only from 2026-27.

## Key facts

- Obligated entities: 490 (after the January 2026 notification)
- Iron and steel (draft): 255 (entities proposed on 26 June 2026)
- Estimated final coverage: ~795 (entities (Ministry of Power, March 2025))
- Penalty for a shortfall: 2× (the average traded credit price for that year)
- Offset methodologies: 9 (approved; over 40 entities submitting projects)
- Trading start: 2026-27 (expected; monthly sessions on power exchanges)

## In brief

- The Carbon Credit Trading Scheme was notified on 28 June 2023. It sets each obligated plant a greenhouse gas emission intensity target in tCO2e per tonne of product, against a 2023-24 baseline, for the compliance years 2025-26 and 2026-27.
- Targets cover 490 entities (the Press Information Bureau total of 22 January 2026): 282 in aluminium, cement, chlor-alkali and pulp & paper from October 2025, and 208 in refineries, petrochemicals, textiles and secondary aluminium from January 2026. A June 2026 draft would add 255 iron and steel entities.
- A plant that misses its target must buy Carbon Credit Certificates (1 per tCO2e); otherwise it pays environmental compensation of twice the average traded price, within 90 days.
- CERC's trading rules of 27 February 2026 set monthly trading on power exchanges within a floor and forbearance price band. No band and no trade had been published in the official texts we read as of 12 November 2026.

## Obligated entities with notified targets (cumulative), with the draft steel step and the 795 estimate

| Period | Obligated entities |
|---|---|
| Oct 2025 | 282 |
| Jan 2026 | 490 |
| Jun 2026 (draft) | 745 (calc.) |

## Entities with targets, by sector

| Period | entities |
|---|---|
| Iron & steel (draft) | 255 |
| Cement | 186 |
| Textiles | 173 |
| Pulp & paper | 53 |
| Chlor-alkali | 30 |
| Refineries | 21 |
| Aluminium | 13 |
| Petrochemicals | 11 |
| Secondary aluminium | 3 |

## One plant's targets: Vedanta Jharsuguda Smelter II (tCO2e per tonne of aluminium)

| Period | tCO2e per tonne |
|---|---|
| 2023-24 baseline | 13.8878 |
| 2025-26 target | 13.7232 |
| 2026-27 target | 13.2965 |

## Emissions intensity of India's GDP, reduction from 2005 (%), and the 2030 goal

| Period | Reduction vs 2005 |
|---|---|
| 2010 | 12 |
| 2014 | 21 |
| 2016 | 24 |
| 2019 | 33 |
| 2030 | — |

## Where the estimated 795 obligated entities are: top 5 states

| Period | entities |
|---|---|
| Gujarat | 101 |
| Odisha | 83 |
| Chhattisgarh | 76 |
| Rajasthan | 70 |
| Karnataka | 55 |

## From the 2022 law change to monthly trading

| Date | Event |
|---|---|
| 2022-05-30 | India notifies its national authority for Article 6 of the Paris Agreement. |
| 2023-06-28 | Carbon Credit Trading Scheme, 2023 notified under the Energy Conservation Act. |
| 2023-12-19 | Scheme amended (S.O. 5369(E)). |
| 2024-07 | Compliance procedure and MRV framework published. |
| 2024-11-13 | CERC publishes draft trading regulations. |
| 2025-04-16 | Draft emission intensity target rules published. |
| 2025-08-07 | India and Japan sign a Joint Crediting Mechanism agreement under Article 6.2. |
| 2025-10-08 | First targets: 282 entities in aluminium, cement, chlor-alkali, pulp & paper. |
| 2026-01-13 | 208 more entities added; total 490. |
| 2026-02-27 | CERC notifies the carbon credit trading regulations. |
| 2026-03-21 | Indian Carbon Market portal launched. |
| 2026-06-26 | Draft targets proposed for 255 iron and steel entities. |
| 2026-10 | BEE drafts the trading procedure: sessions on the last Thursday of each month. |
| 2027-03-31 | Compliance year 2026-27 ends — the last year with notified targets. |

## How the compliance mechanism works

| Step | What happens |
|---|---|
| Target set | An annual intensity target per tonne of product, against a 2023-24 baseline, for a 3-year trajectory. |
| Measure and verify | Direct and purchased-energy emissions are reported and checked by an accredited verifier. |
| Credits or shortfall | (Target − achieved intensity) × output: beat it and receive credits, miss it and owe that many. |
| Trade monthly | Credits change hands on power exchanges; extra credits can be banked for later years. |
| Penalty if short | Environmental compensation of 2× the average traded price, payable within 90 days. |

## Who is covered

| Item | Rule |
|---|---|
| Sectors with targets (Oct 2025) | Aluminium 13, cement 186, chlor-alkali 30, pulp & paper 53 — 282 entities |
| Sectors added (Jan 2026) | Textiles 173, refineries 21, petrochemicals 11, secondary aluminium 3 — 208 entities |
| Total today | 490 obligated entities (PIB, January 2026): 282 from October 2025 plus 208 from January 2026 |
| Proposed next | Iron and steel: 255 entities (draft, 26 June 2026) |
| Not covered | Thermal power plants; fertiliser identified but no targets notified |
| Emissions counted | Direct plus indirect from purchased electricity and heat |
| Gases | 7 named, including CO2, CH4, N2O, HFCs, PFCs, SF6 (list not exhaustive) |
| Baseline / target years | 2023-24 baseline; targets for 2025-26 and 2026-27 |
| Estimated final scope | About 795 entities (March 2025 estimate) |

## Carbon Credit Certificates and offsets at a glance

| Item | Status |
|---|---|
| Unit | 1 Carbon Credit Certificate = 1 tCO2e |
| Market segments | 2: a compliance market and an offset market, on power exchanges |
| Trading frequency | Monthly; draft procedure proposes the last Thursday of each month |
| Price band | Floor and forbearance price to be approved by CERC; none found published |
| Bid defaults | More than 3 in a quarter: barred for 6 months |
| Offset methodologies | 9 approved; over 40 entities submitting projects (March 2026) |
| Offset sectors | 10 groups, from energy and industry to forestry and carbon removal |
| Article 6 | 14 eligible activities; India–Japan JCM signed 7 August 2025 |
| Institutions | Registry: Grid Controller of India; Administrator: BEE; regulator: CERC |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Scheme notified | 28 June 2023 (S.O. 2825(E), under the Energy Conservation Act, 2001) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| Scheme amended | 19 December 2023 (S.O. 5369(E)) | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Legal basis | Energy Conservation (Amendment) Act, 2022 — clause (w) of section 14 | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Unit of a carbon credit | 1 credit = 1 tCO2e reduced, removed or avoided | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| Greenhouse gases named in the scheme | 7 named (CO2, CH4, N2O, HCFCs, HFCs, PFCs, SF6), list not exhaustive | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| National Steering Committee meetings | At least 1 meeting per quarter; chaired by the Power Secretary, co-chaired by the Environment Secretary | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| First GEI targets (October 2025) | 282 obligated entities in 4 sectors: aluminium, cement, chlor-alkali, pulp & paper | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| First target rules gazetted | 8 October 2025 (G.S.R. 739(E), Environment (Protection) Act, 1986) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Cement entities with targets | 186 (count of entities listed in Table 2 of the 2025 Rules) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Aluminium entities with targets (October 2025) | 13 (count of entities listed in Table 1: 8 smelters, 5 refineries) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Chlor-alkali entities with targets | 30 (count of entities listed in Table 3, CNAOE001–CNAOE030) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Pulp & paper entities with targets | 53 (count of entities listed in Table 4) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Baseline year | 2023-24 (baseline output and baseline GHG emission intensity) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Compliance years with targets | 2025-26 and 2026-27 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Target metric | tCO2e per tonne of equivalent product (refineries: tCO2e per MBBLS/NRGF) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| First-year target for the October 2025 sectors | Pro rata for 7 months, September 2025 to March 2026 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Second set of targets (January 2026) | 208 obligated entities: petroleum refineries, petrochemicals, textiles, secondary aluminium | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| Textile entities with targets | 173 (count of entities listed in the Second Schedule, TXTOE001–TXTOE173) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Petroleum refinery entities with targets | 21 (count of entities listed in the Second Schedule, REFOE001–REFOE021) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Petrochemical entities with targets | 11 (count of entities listed in the Second Schedule) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Secondary aluminium entities with targets | 3 (Hindalco Taloja, Hirakud FRP, Mouda) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Obligated entities after January 2026 | 490 obligated entities (PIB, 22 Jan 2026: the 282 from October 2025 in aluminium, cement, chlor-alkali and pulp & paper, plus 208 in petroleum refineries, petrochemicals, textiles and secondary aluminium) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| First-year target for the January 2026 sectors | Pro rata for 3 months, January to March 2026 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Iron and steel: draft targets | 255 entities listed in a draft Third Schedule (G.S.R. 517(E), 26 June 2026); target for 2026-27 only | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Comment period for the steel draft | 60 days from publication | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Obligated entities if the steel draft is adopted | 745 = 490 (f22) + 255 (f24) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Estimated eventual coverage (March 2025) | About 795 obligated entities | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Gujarat | 101 (of 795, March 2025 estimate) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Odisha | 83 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Chhattisgarh | 76 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Rajasthan | 70 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Karnataka | 55 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Sectors identified for the compliance mechanism | 9: aluminium, cement, steel, paper, chlor-alkali, fertiliser, refinery, petrochemical, textile | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Power sector | Thermal power plants not moved from PAT into the CCTS (Dec 2025); fertiliser has no notified targets yet | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2198780&reg=3&lang=1) | 2026-11-12 |
| Emissions counted | Direct plus indirect (grid electricity, imported heat) — Scope 1 and 2 | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Trajectory period | 3 years, with annual targets (compliance cycles) | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Penalty for a shortfall | Environmental compensation = 2 × the average CCC price in that compliance year's trading cycle | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Deadline to pay compensation | 90 days from the order (imposed by the Central Pollution Control Board) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Draft target rules published | 16 April 2025 (G.S.R. 234(E)) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Trading rules notified | CERC CCC Regulations, 2026, dated 27 February 2026 | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Draft trading rules | Published for comment 13 November 2024 | [Central Electricity Regulatory Commission (CERC)](https://www.cercind.gov.in/2024/draft_reg/PN-PoCCC-2024.pdf) | 2026-11-12 |
| Market segments | 2: a Compliance Market and an Offset Market | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Trading frequency | Monthly (12 sessions a year) unless CERC approves otherwise | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Price band | Floor and forbearance prices for the compliance market, to be approved by CERC on a BEE proposal; no values found in the texts read | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Bid-default sanction | More than 3 defaults in a quarter: barred from CCC dealing for 6 months | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Proposed trading day (draft, October 2026) | Last Thursday of every month | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-ff98b7dece646232_1792561430.pdf) | 2026-11-12 |
| Expected start of compliance trading | 2026-27 (stated 13 March 2025) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Earlier target dates (September 2024) | Mandatory sectors by October 2026; voluntary sectors by April 2026 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2057980&reg=3&lang=1) | 2026-11-12 |
| Offset methodologies approved | 9 (e.g. grid renewables, hydrogen, landfill methane, afforestation incl. mangroves) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| Offset project registrants (March 2026) | Over 40 registered entities submitting projects (biogas, hydrogen, forestry) | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243377&reg=3&lang=1) | 2026-11-12 |
| Approved offset sector groups | 10 groups listed (energy, industries, agriculture, waste, forestry, transport, fugitive, construction, solvent use, CCUS and removals) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Indian Carbon Market portal launched | 21 March 2026, at Prakriti 2026 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243377&reg=3&lang=1) | 2026-11-12 |
| PAT scheme units moved to CCTS | 490 of 1,333 PAT units (7 of 13 sectors) became obligated entities in January 2026 | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| MRV framework published | July 2024 (Detailed Procedure for Compliance Mechanism) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Article 6 authority notified | 30 May 2022 (NDAIAPA, chaired by the Environment Secretary) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1900216) | 2026-11-12 |
| Activities eligible for Article 6 trading | 14 activities (mitigation, alternate materials, removals) under Article 6.2 and 6.4 | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2099131) | 2026-11-12 |
| India–Japan Joint Crediting Mechanism | Memorandum of Cooperation signed 7 August 2025 (Article 6.2) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191915&reg=48&lang=2) | 2026-11-12 |
| NDC goal the market supports | Cut emissions intensity of GDP by 45% by 2030 vs 2005 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=1923458&reg=3&lang=2) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2010 | 12% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2014 | 21% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2016 | 24% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2019 | 33% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Example target: Vedanta Jharsuguda Smelter II (aluminium) | 13.8878 tCO2e/t (2023-24 baseline) → 13.7232 (2025-26) → 13.2965 (2026-27) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Example: required cut by 2026-27 (Vedanta smelter) | 4.3% below baseline = (13.8878 − 13.2965) ÷ 13.8878 (f63) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Example target: JK Cement Muddapur (cement) | 0.4455 tCO2e/t (baseline) → 0.4440 (2025-26) → 0.4402 (2026-27), a 1.2% cut by 2026-27 (calc.) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Formula for credits issued / to buy | (target − achieved intensity) × equivalent output in that compliance year = CCCs (1 per tCO2e) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Banking | Leftover CCCs carry into later compliance cycles; purchased CCCs may be used only for compliance | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Institutions | Registry: Grid Controller of India; Administrator: BEE; trading regulator: CERC (3 bodies) | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223703&reg=3&lang=1) | 2026-11-12 |
| Public budget for the scheme | 0 central allocation; costs met from fees and BEE's own resources (March 2025) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| PAT outcome that CCTS builds on | 27.07 MTOE saved a year; about 115.21 MtCO2 avoided | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |

## FAQ

**Has India's carbon market started trading?**

Not in the official records we read up to 12 November 2026. The Ministry of Power said in March 2025 that compliance trading is expected to begin in 2026-27, and BEE's trading procedure was still a draft in October 2026.

**How many companies must meet targets?**

490 obligated entities after January 2026: 282 from October 2025 and 208 added on 13 January 2026. The 282 is the first notification (G.S.R. 739(E), October 2025, four sectors); the 490 is the total the Press Information Bureau gave on 22 January 2026, after the 13 January notification added 208 entities in four more sectors. A June 2026 draft would add 255 iron and steel entities.

**Is it a cap-and-trade system?**

No. Each plant gets an emissions intensity target in tCO2e per tonne of product, not an absolute cap. Beating the target earns credits; missing it means buying credits equal to (achieved − target) × output.

**What is the penalty for missing a target?**

Environmental compensation equal to twice the average price at which credits traded in that compliance year, imposed by the Central Pollution Control Board and payable within 90 days.

**What is the price of an Indian carbon credit?**

There is no traded price yet. CERC's 2026 rules require trading within a floor and forbearance price band to be approved on a BEE proposal; we found no published band.

**Which sectors are covered?**

Aluminium, cement, chlor-alkali, pulp & paper, petroleum refineries, petrochemicals, textiles and secondary aluminium. Iron and steel targets are in draft. Thermal power plants were not moved into the scheme.

**Can projects outside these industries earn credits?**

Yes, through the offset mechanism. Nine methodologies are approved, such as grid renewables, hydrogen, landfill methane and afforestation, and over 40 entities were submitting projects in March 2026.

**How does India's scheme link to Article 6?**

A national authority set up on 30 May 2022 approves activities for international transfer; 14 activities are eligible. India signed a Joint Crediting Mechanism agreement with Japan on 7 August 2025.

## Not listed yet

- Carbon credit prices: no trade and no approved floor or forbearance price found.
- Total emissions covered by the 490 entities, in tonnes or as a share of national emissions: not stated in the official texts we read.
- Fertiliser targets: the sector was identified but no target schedule was found.
- Carbon Credit Certificate price (floor, forbearance or traded) — No CCC trade and no approved price band found in official texts read up to 12 Nov 2026
- Whether any CCC has been issued or traded — No official issuance or trading record found; latest texts describe procedures in draft (BEE, October 2026)
- Final iron and steel targets — Only the 26 June 2026 draft (G.S.R. 517(E)) was found; no final notification read
- Fertiliser sector targets — Listed among the 9 identified sectors, but no notified target schedule found
- Total emissions covered (MtCO2e or % of national emissions) — Not stated in the official texts read
- egazette.gov.in originals — Site refused the connection (certificate not trusted by our client); gazette copies hosted by BEE were used instead
- indiancarbonmarket.gov.in — Returned 403 to automated access; not bypassed


---

# Indonesia's IDXCarbon: an OJK-licensed carbon exchange with four markets, and new rules since July 2026

_Last checked 2026-11-12 · https://asiacarbondesk.com/indonesia-idxcarbon/_

Run by the Indonesia Stock Exchange under OJK supervision since September 2023, IDXCarbon lists offset units (SPE-GRK) and power-sector allowances (PTBAE-PU). OJK Regulation 10/2026, in force since 6 July 2026, moves units to a new registry (SRUK) and lets foreign carbon units trade.

## Key facts

- Launched: 26 Sep 2023 (licensed by OJK; run by IDX)
- Rule change: 6 Jul 2026 (OJK 10/2026: new registry, foreign units)
- Trading hours: 07:00–19:00 (from 13 Jul 2026 (exchange time))
- Transaction fee: 0.11% (regular and negotiated; 0.22% auction and non-regular)
- Service users: 160 (registered to 30 Oct 2026 (OJK))
- Trading unit: 1 lot = 1 t (tCO2e per lot under the 2026 rules)

## In brief

- IDXCarbon launched on 26 September 2023 under an OJK licence; the Indonesia Stock Exchange operates it and OJK supervises it.
- OJK Regulation 10/2026, effective 6 July 2026, amends 14/2023: units move to a new registry (SRUK), and foreign carbon units not in SRUK can be traded. IDX amended its trading rules on 9 July and extended hours to 07:00–19:00 from 13 July.
- Trading runs in four markets (Auction, Regular, Negotiated, Non-Regular) in lots of 1 tCO2e, with an IDR 200 tick and a ±20% auto-rejection band on the regular market; fees are 0.11% or 0.22% of value.
- OJK counted 113 registered service users in July 2025 and 160 at 30 October 2026; it reported 8 registered projects in July 2025.

## Registered service users (entities)

| Period | entities |
|---|---|
| Jul 2025 | 113 |
| Aug 2026 | 159 |
| Sep 2026 | 160 |
| Oct 2026 | 160 |

## Power-sector ETS coverage (coal-fired units)

| Period | units |
|---|---|
| 2023 | 99 |
| 2024 | 146 |

## Phase 1 emission intensity caps by coal plant class (tCO2e/MWh)

| Period | tCO2e/MWh |
|---|---|
| 25–<100 MW | 1.297 |
| Mine-mouth ≥100 MW | 1.089 |
| Non-mine-mouth 100–400 MW | 1.011 |
| >400 MW | 0.911 |

## From the 2023 launch to the July 2026 rule change

| Date | Event |
|---|---|
| 2023-02-22 | Power-sector carbon trading launched by the energy ministry. |
| 2023-08-02 | OJK Regulation 14/2023 on carbon trading through a carbon exchange enacted. |
| 2023-09-18 | OJK grants IDX the carbon exchange operator licence. |
| 2023-09-26 | IDXCarbon launched by the President. |
| 2025-01-20 | International trading of Indonesian carbon units inaugurated. |
| 2026-07-06 | OJK Regulation 10/2026 takes effect; SRUK replaces SRN-PPI; foreign units may trade. |
| 2026-07-09 | IDX amends its carbon exchange rules (Kep-00102 to 00105). |
| 2026-07-13 | Trading hours extend to 07:00–19:00. |
| 2027 | Phase 2 of the power-sector ETS roadmap (2025–2027) ends; Phase 3 runs 2028–2030. |

## From project to retirement

| Step | What happens |
|---|---|
| Project issues units | A mitigation project is registered and its SPE-GRK units are recorded in the national registry. |
| Listed on IDXCarbon | Units are listed for trading; the registration fee is IDR 0 per tonne. |
| Trade | Four routes: auction, regular continuous auction, negotiated, marketplace; 1 lot = 1 tCO2e. |
| Settle and retire | SPE-GRK are retired on IDXCarbon. Power-sector PTBAE-PU allowances are surrendered to the ministry instead. |

## Operator, units and market rules

| Item | Rule |
|---|---|
| Operator and supervisor | Indonesia Stock Exchange; supervised by OJK (licence KEP-77/D.04/2023) |
| Units | PTBAE-PU (allowances) and SPE-GRK (offsets) |
| Trading unit | 1 lot = 1 tCO2e |
| Markets (2026 rules) | Auction, Regular, Negotiated, Non-Regular |
| Regular market price rules | Tick size and minimum price IDR 200; ±20% auto-rejection band |
| Hours (from 13 Jul 2026) | 07:00–19:00 exchange time |
| Fees | 0.11% regular and negotiated; 0.22% auction and non-regular; listing IDR 0; withdrawal IDR 25,000 |
| Operator capital | At least IDR 100 billion, not from loans (Art. 13 of 14/2023) |

## Units, projects and the power-sector scheme

| Item | Status |
|---|---|
| SPE-GRK groups | 8 standardised groups (from Jan 2025) |
| Registered projects (OJK) | 8 as of July 2025 |
| Authorised for international trade | Groups with "A" (IDNBSA, IDTBSA, IDTBSA-RE) carry government authorisation; international trading opened 20 Jan 2025 |
| Registry | SRUK replaces SRN-PPI under OJK 10/2026 |
| Transition to SRUK | Units in ministry systems may trade until SRUK operates, at most 3 months after promulgation |
| Foreign units | Allowed to trade even if not recorded in SRUK (since 6 Jul 2026) |
| Power-sector ETS, 2023 | 99 coal units from 42 companies |
| Power-sector ETS, 2024 | 146 units (adds coal units ≥25 MW) |
| Power-sector trade, 2023 | 7.1 MtCO2e, IDR 84.17 billion |
| Phase 1 intensity caps | 1.297 / 1.089 / 1.011 / 0.911 by plant class |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| IDXCarbon launch date | 26 Sep 2023, launched by President Joko Widodo | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/22/6aba32a1-640c-4c89-9b9e-74383ed336bb) | 2026-11-12 |
| Carbon exchange operator licence | OJK Decree KEP-77/D.04/2023, 18 Sep 2023, granted to IDX | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/22/6aba32a1-640c-4c89-9b9e-74383ed336bb) | 2026-11-12 |
| Trading mechanisms | 4: Auction, Regular, Negotiated, Marketplace | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/22/6aba32a1-640c-4c89-9b9e-74383ed336bb) | 2026-11-12 |
| Registry connection | Connected to SRN-PPI (Ministry of Environment and Forestry) to avoid double counting | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/22/6aba32a1-640c-4c89-9b9e-74383ed336bb) | 2026-11-12 |
| Tradable units (FAQ) | PTBAE-PU (allowance) and SPE-GRK (offset); run by IDX, supervised by OJK | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/frequently-asked-questions) | 2026-11-12 |
| Surrender of PTBAE-PU | Not done through IDXCarbon (done to the ministry); retirement of SPE-GRK is done on IDXCarbon | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/frequently-asked-questions) | 2026-11-12 |
| POJK 14/2023 enacted and promulgated | 2 Aug 2023 (effective on promulgation) | [Otoritas Jasa Keuangan (hosted by IDXCarbon)](https://www.idxcarbon.co.id/document/share/3/fb5185f8-a662-44f4-a1f5-f1f1b5ed2b25) | 2026-11-12 |
| Units tradable under POJK 14/2023 (Art. 5) | PTBAE-PU and SPE-GRK | [Otoritas Jasa Keuangan (hosted by IDXCarbon)](https://www.idxcarbon.co.id/document/share/3/fb5185f8-a662-44f4-a1f5-f1f1b5ed2b25) | 2026-11-12 |
| Minimum paid-up capital of exchange operator (Art. 13) | IDR 100 billion, not from loans | [Otoritas Jasa Keuangan (hosted by IDXCarbon)](https://www.idxcarbon.co.id/document/share/3/fb5185f8-a662-44f4-a1f5-f1f1b5ed2b25) | 2026-11-12 |
| POJK 10/2026 amending POJK 14/2023 | Enacted 2 Jul 2026, promulgated and effective 6 Jul 2026 | [Otoritas Jasa Keuangan](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) | 2026-11-12 |
| Registry change under POJK 10/2026 | Exchange-traded units must be recorded in SRUK, which replaces SRN-PPI | [Otoritas Jasa Keuangan](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) | 2026-11-12 |
| Foreign carbon units under POJK 10/2026 | Allows trading of foreign carbon units not recorded in SRUK; expands scope of carbon units | [Otoritas Jasa Keuangan](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) | 2026-11-12 |
| Transition to SRUK | Trading of units in ministry systems allowed until SRUK operates, max 3 months after promulgation | [Otoritas Jasa Keuangan](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) | 2026-11-12 |
| Legal basis of POJK 10/2026 | Aligns with Presidential Regulation (Perpres) 110/2025 on carbon economic value instruments | [Otoritas Jasa Keuangan](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) | 2026-11-12 |
| IDX amended carbon exchange rules (Kep-00102 to 00105/BEI/07-2026) | Issued and effective 9 Jul 2026, approved by OJK letter S-186/PM.01/2026 | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Listed carbon units under 2026 trading rules | Units in SRUK (Kuota Emisi GRK, SPE GRK, non-SPE GRK) and units not recorded in SRUK | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Trading hours from 13 Jul 2026 | 07:00–19:00 exchange time (09:00–15:00 during transition) | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Trading unit | 1 lot = 1 tCO2e | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Regular market tick size and minimum price | IDR 200 tick; minimum price IDR 200 (auction minimum IDR 1) | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Regular market auto-rejection band | ±20% from reference price | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Market segments (2026 rules) | Auction, Regular, Negotiated, Non-Regular | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/167/35ac1388-c8a9-4cca-9660-eb8f06ed71b3) | 2026-11-12 |
| Transaction fee: regular and negotiated markets | 0.11% of transaction value (per buyer and seller) | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/14/6afdeb70-66fe-4534-b61a-f4891b2e64e3) | 2026-11-12 |
| Transaction fee: auction and non-regular markets | 0.22% of transaction value | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/14/6afdeb70-66fe-4534-b61a-f4891b2e64e3) | 2026-11-12 |
| Carbon unit registration (listing) fee | IDR 0 per tonne | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/14/6afdeb70-66fe-4534-b61a-f4891b2e64e3) | 2026-11-12 |
| Fund withdrawal fee | IDR 25,000 per withdrawal | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/14/6afdeb70-66fe-4534-b61a-f4891b2e64e3) | 2026-11-12 |
| SPE-GRK standardized groups (from Jan 2025) | 8 groups: IDNBS, IDNBSA, IDNBSI, IDTBS, IDTBS-RE, IDTBSA, IDTBSA-RE, IDTBSI; "A" = authorized for international trading | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/document/share/114/1444fbfc-9fb9-4028-abda-d76a02545010) | 2026-11-12 |
| International trading of Indonesian carbon units inaugurated | 20 Jan 2025 by KLH/BPLH, OJK and IDX | [Indonesia Stock Exchange (IDXCarbon)](https://www.idxcarbon.co.id/news-press-release) | 2026-11-12 |
| Power-sector carbon trading launched (ESDM) | 22 Feb 2023 | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/berita-unit/direktorat-jenderal-ketenagalistrikan/99-unit-pltu-ditargetkan-ikuti-perdagangan-karbon-tahun-ini) | 2026-11-12 |
| Power-sector ETS coverage 2023 | 99 coal-fired units from 42 companies (55 PLN Group, 44 IPP), above 100 MW | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/berita-unit/direktorat-jenderal-ketenagalistrikan/99-unit-pltu-ditargetkan-ikuti-perdagangan-karbon-tahun-ini) | 2026-11-12 |
| Power-sector ETS coverage 2024 | 146 units (adds coal units ≥25 MW) | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/media-center/arsip-berita/transaksi-perdagangan-karbon-tahun-2023-capai-rp84-miliar) | 2026-11-12 |
| Power-sector carbon trading 2023 result | 7.1 MtCO2e traded, IDR 84.17 billion | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/media-center/arsip-berita/transaksi-perdagangan-karbon-tahun-2023-capai-rp84-miliar) | 2026-11-12 |
| Power-sector ETS roadmap phases | Phase 1 2023–2024, Phase 2 2025–2027, Phase 3 2028–2030; ≥100 MtCO2e reduction potential by 2030 | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/media-center/arsip-berita/transaksi-perdagangan-karbon-tahun-2023-capai-rp84-miliar) | 2026-11-12 |
| Phase 1 emission intensity caps (PTBAE) for coal plants | 1.297 (25–<100 MW); 1.089 (mine-mouth ≥100 MW); 1.011 (non-mine-mouth 100–400 MW); 0.911 (>400 MW) tCO2e/MWh | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/media-center/arsip-berita/kementerian-esdm-terbitkan-aturan-acuan-nilai-ekonomi-karbon-subsektor-listrik) | 2026-11-12 |
| Power-sector carbon pricing regulation | Permen ESDM 16/2022 (announced 24 Jan 2023), derived from Perpres 98/2021 | [Ministry of Energy and Mineral Resources (ESDM)](https://www.esdm.go.id/id/media-center/arsip-berita/kementerian-esdm-terbitkan-aturan-acuan-nilai-ekonomi-karbon-subsektor-listrik) | 2026-11-12 |
| Registered carbon exchange service users, 26 Sep 2023 – 31 Aug 2026 (OJK) | 159 service users | [Otoritas Jasa Keuangan (OJK)](https://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Documents/Pages/RDKB-Agustus-2026/SP%20166%20Kinerja%20dan%20Intermediasi%20Sektor%20Jasa%20Keuangan%20Terjaga%20Mendukung%20Akselerasi%20Pertumbuhan%20Ekonomi%20RDKB%20Agustus%202026.pdf) | 2026-11-12 |
| Cumulative carbon exchange volume, 26 Sep 2023 – 31 Aug 2026 (OJK) | 1.98 million tCO2e (table: 1,977,400 tCO2e) | [Otoritas Jasa Keuangan (OJK)](https://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Documents/Pages/RDKB-Agustus-2026/SP%20166%20Kinerja%20dan%20Intermediasi%20Sektor%20Jasa%20Keuangan%20Terjaga%20Mendukung%20Akselerasi%20Pertumbuhan%20Ekonomi%20RDKB%20Agustus%202026.pdf) | 2026-11-12 |
| Cumulative carbon exchange value, 26 Sep 2023 – 31 Aug 2026 (OJK) | IDR 93.90 billion | [Otoritas Jasa Keuangan (OJK)](https://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Documents/Pages/RDKB-Agustus-2026/SP%20166%20Kinerja%20dan%20Intermediasi%20Sektor%20Jasa%20Keuangan%20Terjaga%20Mendukung%20Akselerasi%20Pertumbuhan%20Ekonomi%20RDKB%20Agustus%202026.pdf) | 2026-11-12 |
| Registered carbon exchange service users, July 2025 (OJK) | 113 service users | [Otoritas Jasa Keuangan (OJK)](https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/Launching-Buku-Perdagangan-Karbon-SJK.aspx) | 2026-11-12 |
| Projects registered on the carbon exchange, July 2025 (OJK) | 8 projects | [Otoritas Jasa Keuangan (OJK)](https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/Launching-Buku-Perdagangan-Karbon-SJK.aspx) | 2026-11-12 |
| Registered carbon exchange service users, to 30 Sep 2026 (OJK) | 160 service users | [Otoritas Jasa Keuangan (OJK)](https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/RDKB-September-2026.aspx) | 2026-11-12 |
| Registered carbon exchange service users, to 30 Oct 2026 (OJK) | 160 service users | [Otoritas Jasa Keuangan (OJK)](https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/RDKB-Oktober-2026.aspx) | 2026-11-12 |

## FAQ

**What is IDXCarbon?**

Indonesia's carbon exchange, operated by the Indonesia Stock Exchange under an OJK licence and launched on 26 September 2023. It trades power-sector allowances (PTBAE-PU) and offset units (SPE-GRK).

**How much has traded on Indonesia's carbon exchange?**

The regulator OJK reported that from launch on 26 September 2023 to 31 August 2026 cumulative volume was 1.98 million tCO2e, worth IDR 93.90 billion, with 159 registered service users. We do not show monthly or price data from the exchange.

**How are prices set on the regular market?**

Under the July 2026 rules the regular market uses a tick size of IDR 200 and a minimum price of IDR 200 (IDR 1 in auctions), and orders more than 20% away from the reference price are rejected automatically. We do not publish traded prices.

**What changed in July 2026?**

OJK Regulation 10/2026 took effect on 6 July 2026. Units must be recorded in a new registry, SRUK, and foreign carbon units not recorded there may also be traded. IDX amended its trading rules on 9 July, and hours extended to 07:00–19:00 from 13 July.

**Who can trade?**

Compliance companies holding PTBAE-PU, non-compliance companies offsetting emissions, and project developers selling SPE-GRK. OJK counted 160 registered service users as of 30 October 2026.

**How much does it cost to trade?**

A transaction fee of 0.11% of value on the regular and negotiated markets (0.22% for auction and non-regular), IDR 0 per tonne to list units, and IDR 25,000 per fund withdrawal.

**Does Indonesia also have an emissions trading system?**

For the power sector, yes: trading began in February 2023 with 99 coal units, expanded to 146 units in 2024, with a roadmap of Phase 1 (2023–24), Phase 2 (2025–27) and Phase 3 (2028–30).

## Not listed yet

- Exchange trading data (monthly volume and value, prices, segment breakdown): left out pending the exchange's data-use terms; only OJK's own cumulative figures are shown.
- Prices and caps for PTBAE-PU allowances: no official figure found.
- Exchange-reported full-year totals for 2023 and 2024: monthly reports before September 2025 were not available.
- The text of OJK Regulation 10/2026 and Presidential Regulation 110/2025: only a summary was readable.
- Carbon tax: not covered here.
- Annual IDXCarbon volume/value for 2023 and 2024 — IDXCarbon Data Monthly page only posts Sep 2025–Oct 2026 reports; idx.co.id press releases for those years returned HTTP 403 to curl/WebFetch.
- Press release on international trading (idx.co.id/en/news/press-release/2305): volumes, buyers, prices — HTTP 403 from idx.co.id; only the opening paragraph on idxcarbon.co.id was readable (no numbers).
- Full text of POJK 10/2026 — ojk.go.id rejected curl ("Request Rejected"); only the OJK abstract PDF was read via WebFetch.
- Perpres 110/2025 text (replacement of Perpres 98/2021, carbon levy, international trade rules) — peraturan.go.id refused connection, BPK JDIH returned 403, kemenkoinfra JDIH PDF returned 404.
- PTBAE-PU (Kuota Emisi GRK) prices or price cap on IDXCarbon — Product page lists no PTBAE-PU series; no PTBAE-PU trades appear in monthly reports; no official price cap found.
- Power-sector installed capacity covered (often cited 33,569 MW) and absolute emission cap — Only seen in news reports; ESDM gatrik PDFs now return an HTML app shell.
- Carbon tax (UU HPP) rate and start date — No official source opened in this pass.
- SRN-PPI registry statistics — srn.menlhk.go.id could not be reached.


---

# Japan's GX-ETS: mandatory emissions trading, with a price band of ¥1,700–¥4,300

_Last checked 2026-11-12 · https://asiacarbondesk.com/japan-gx-ets/_

Since April 2026, companies emitting 100,000 tonnes of CO2 or more must hold allowances for their emissions. Allowances are allocated free; credits can cover up to 10%; and a government-set price band limits the cost. The first filing, allocation and surrender all fall in 2027–28.

## Key facts

- Mandatory start: Apr 2026 (FY2026 · after voluntary FY2023–25)
- Coverage threshold: 100,000 t (direct CO2, 3-year average)
- Covered companies: 300–400 (nearly 60% of Japan's GHG emissions)
- FY2026 price band: ¥1,700–4,300 (floor to ceiling, per tCO2)
- Credit use limit: 10% (J-Credits and JCM, of emissions)
- First surrender: 31 Jan 2028 (market opens around autumn FY2027)

## In brief

- Japan's mandatory ETS began in FY2026 (April 2026) and covers companies with direct CO2 emissions of 100,000 t or more — about 300–400 companies, nearly 60% of national greenhouse gas emissions.
- For FY2026 the reference ceiling is ¥4,300 and the adjustment floor ¥1,700 per tonne; from FY2027 both rise by 3% plus expected price inflation each year. A shortfall left unsurrendered costs the ceiling price × 1.1 (¥4,730 in FY2026).
- Allowances are free: by sector benchmark or by past emissions cut 1.7% a year (0.3% for process emissions). J-Credits and JCM credits may cover up to 10%.
- Because FY2026 is a transition year, filing and allocation move to FY2027, the allowance market opens around autumn 2027, and the first surrender is due 31 January 2028.

## Credit prices from government tenders, 2018–2023 (JPY per tCO2)

| Period | Renewable-power credits | Energy-saving credits |
|---|---|---|
| 2018-01 | 1,716 | 1,148 |
| 2018-04 | 1,724 | 1,395 |
| 2019-01 | 1,830 | 1,602 |
| 2019-04 | 1,801 | 1,506 |
| 2020-01 | 1,851 | 1,473 |
| 2020-06 | 1,887 | — |
| 2021-01 | 2,191 | 1,500 |
| 2021-04 | 2,536 | 1,518 |
| 2022-01 | 2,995 | 1,574 |
| 2022-04 | 3,278 | 1,607 |
| 2023-05 | 3,246 | 1,551 |

## Price band: FY2026 fixed, FY2027 onward rises at least 3% a year

| Period | Ceiling | Floor |
|---|---|---|
| FY2026 | 4,300 | 1,700 |
| FY2027 | 4,429 (calc.) | 1,751 (calc.) |
| FY2028 | 4,562 (calc.) | 1,804 (calc.) |
| FY2029 | 4,699 (calc.) | 1,858 (calc.) |
| FY2030 | 4,840 (calc.) | 1,914 (calc.) |

## Allocation benchmark for coal-fired power, FY2026–FY2030 (kg-CO2 per kWh)

| Period | kg-CO2/kWh |
|---|---|
| FY2026 | 0.8098 |
| FY2027 | 0.8081 |
| FY2028 | 0.8065 |
| FY2029 | 0.7616 |
| FY2030 | 0.7165 |

## From voluntary phase to first surrender

| Date | Event |
|---|---|
| 2023-04 | Voluntary GX-ETS phase 1 begins (FY2023–FY2025). |
| 2023-05-19 | GX Promotion Act promulgated. |
| 2025-06-04 | Amendment making the ETS mandatory promulgated; in force 1 April 2026. |
| 2026-01-05 | Registration of verification bodies opens. |
| 2026-04-01 | Mandatory GX-ETS takes effect. |
| 2026-09-30 | Deadline for first filing and transition plans. |
| 2027 autumn | Allowance trading market expected to open. |
| 2027-09-30 | FY2026 targets filed; allocation follows by end-November (first-year special rule). |
| 2028 | Fossil fuel levy starts (FY2028). |
| 2028-01-31 | First surrender of allowances for FY2026 emissions. |
| 2033 | Paid allocation (auctions) for power generators begins (FY2033). |

## File → allocate → trade → surrender

| Step | What happens |
|---|---|
| File a target | Covered companies report an emissions target and transition plan, verified by a registered body. |
| Receive free allowances | By sector benchmark, or past emissions cut 1.7% a year (0.3% for process emissions). |
| Trade surplus and shortfall | Allowances may be traded between companies; speculative trading is prohibited. |
| Surrender by 31 January | Hold allowances equal to verified emissions; up to 10% may be J-Credits or JCM credits. |
| If still short | Pay a charge: unsurrendered volume × ceiling price × 1.1. |

## Who and what is covered

| Item | Rule |
|---|---|
| Threshold | Direct CO2 emissions of 100,000 t or more, average of the previous 3 fiscal years |
| Gases | CO2 only; Scope 2 and non-CO2 gases excluded |
| Unit | Per company; subsidiaries are separate (joint filing allowed) |
| Companies covered | About 300–400 |
| Share of emissions | Nearly 60% of Japan's GHG emissions |
| Voluntary phase (FY2024) | Over 700 GX League companies, about 60% of emissions |
| Japan's FY2024 emissions | About 994 MtCO2e net (−28.7% vs FY2013) |

## Credits, markets and penalties

| Item | Status |
|---|---|
| Credit limit | 10% of each year's emissions |
| Eligible credits | J-Credits and JCM credits |
| Non-compliance charge | Unsurrendered volume × ceiling × 1.1 (FY2026: ¥4,730 per t, calculated) |
| Fine for false filing | Up to ¥500,000 (Art. 143) |
| Registered J-Credit projects | 1,497 (14.87 MtCO2 certified cumulatively; goal 15 Mt by FY2030) |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Inclusion threshold | Direct CO2 emissions of 100,000 t or more (average of previous 3 fiscal years) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets.html) | 2026-11-12 |
| Threshold set by Cabinet Order | 100,000 t (Article 2 of the Enforcement Order) | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505CO0000000379/20260401_507CO0000000412) | 2026-11-12 |
| Covered gas and scope | CO2 only, direct emissions (Scope 1); Scope 2 and non-CO2 gases excluded | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Compliance unit | Judged per company; subsidiaries treated as separate entities (joint filing allowed) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Expected number of covered companies | Approx. 300-400 companies | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) | 2026-11-12 |
| Share of national GHG emissions covered | Nearly 60% of Japan's GHG emissions | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) | 2026-11-12 |
| GX League voluntary ETS participation (FY2024) | Over 700 companies, about 60% of Japan's emissions | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) | 2026-11-12 |
| Reference price ceiling, FY2026 | JPY 4,300 per t-CO2 allowance | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) | 2026-11-12 |
| Adjustment reference price (floor), FY2026 | JPY 1,700 per t-CO2 allowance | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) | 2026-11-12 |
| Subcommittee recommendation on FY2026 ceiling | JPY 4,300 per allowance (1 t-CO2) | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/20251219_2.pdf) | 2026-11-12 |
| Subcommittee recommendation on FY2026 floor | JPY 1,700 per allowance (1 t-CO2) | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/20251219_2.pdf) | 2026-11-12 |
| Price escalation rule FY2027-FY2030 | Prior-year price x (1.03 + projected domestic corporate goods price index change) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) | 2026-11-12 |
| Ceiling mechanism (deemed holding) | When triggered, firms may pay ceiling price per allowance instead of surrendering, limited to shortfall vs. allocation | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Floor mechanism | GX Promotion Organization may buy allowances when average price falls below the adjustment reference price | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Proposed ceiling trigger (under discussion) | Proposal: monthly average price above ceiling for 3 consecutive months | [METI](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/009_03_00.pdf) | 2026-11-12 |
| Allocation method | Free allocation by government based on sector guidelines | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Grandfathering annual reduction rate (energy-related CO2) | 1.7% per continuous reporting year | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Grandfathering annual reduction rate (process CO2) | 0.3% per continuous reporting year | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Benchmark: coal-fired power, FY2026-FY2030 | 8.098, 8.081, 8.065, 7.616, 7.165 (x10^-4 t-CO2/kWh) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Benchmark: LNG/city-gas power, FY2026-FY2030 | 3.857, 3.855, 3.853, 4.258, 4.656 (x10^-4 t-CO2/kWh) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Benchmark: cement (per t clinker), FY2026-FY2030 | 0.8392, 0.8370, 0.8349, 0.8328, 0.8306 t-CO2/t clinker | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Benchmark: paper (pulping & papermaking), FY2026-FY2030 | 1.086, 1.067, 1.048, 1.029, 1.010 | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Offset credit usage cap | 10% of each year's emissions | [METI (Industrial Structure Council)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) | 2026-11-12 |
| Credit cap in allocation guideline | Cancelled credits counted up to 0.1 x direct emissions | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) | 2026-11-12 |
| Eligible credits | J-Credits and JCM credits | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Surrender obligation | Hold allowances equal to verified emissions by 31 January of the following year | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Non-compliance charge | Unsurrendered volume x reference ceiling price x 1.1 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Implied non-compliance charge, FY2026 | JPY 4,730 per t-CO2 (= 4,300 x 1.1) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) | 2026-11-12 |
| Penalty for failure to file / false filing (Art.143) | Fine of up to JPY 500,000 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Speculative trading prohibited | Allowances must not be subject to speculative trading | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Number of registered verification bodies (listed) | 18 bodies listed on METI page as of 2026-11-04 update (count of listed names) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets.html) | 2026-11-12 |
| Verification body registration opened | 5 January 2026 | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets.html) | 2026-11-12 |
| Verification fee: target check, 0.1-1 Mt emitters | JPY 3,104,700 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505CO0000000379/20260401_507CO0000000412) | 2026-11-12 |
| Verification body registration validity | 5 years | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505CO0000000379/20260401_507CO0000000412) | 2026-11-12 |
| Mandatory ETS start | FY2026 (from April 2026) | [METI](https://www.meti.go.jp/press/2024/02/20250225001/20250225001.html) | 2026-11-12 |
| GX Promotion Act amendment promulgated | 4 June 2025 (Act No. 52 of 2025); in force 1 April 2026 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| GX Promotion Act promulgated | 19 May 2023 (Act No. 32 of 2023) | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| First filing and transition plan deadline | 30 September 2026 | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| First-year special rule: allocation | FY2026 target filing and allocation take place in FY2027 (filing by 30 Sep 2027, allocation end-Nov) | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| First surrender date (FY2026 obligations) | 31 January 2028 | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Allowance trading market opening | Around autumn FY2027 | [METI](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/010_03_00.pdf) | 2026-11-12 |
| ERMS registry/reporting system | Planned launch around June 2026 | [METI](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) | 2026-11-12 |
| Paid allocation (auction) for power generators | From FY2033 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| Fossil fuel levy start | From FY2028 | [e-Gov (Digital Agency)](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) | 2026-11-12 |
| GX-ETS Phase 1 (voluntary) period | FY2023-FY2025 | [GX League (METI)](https://gx-league.go.jp/aboutgxleague/document/GX-ETSの概要.pdf) | 2026-11-12 |
| Phase 1 NDC-level reduction rates (2013 base) | 27.0% (FY2023), 29.7% (FY2024), 32.4% (FY2025) | [GX League (METI)](https://gx-league.go.jp/aboutgxleague/document/GX-ETSの概要.pdf) | 2026-11-12 |
| Phase 1 trading scope | Domestic direct emissions only (Scope 1) | [GX League (METI)](https://gx-league.go.jp/aboutgxleague/document/GX-ETSの概要.pdf) | 2026-11-12 |
| GX League basic concept endorsements (Feb 2022) | 440 companies | [GX League (METI)](https://gx-league.go.jp/aboutgxleague/document/GXリーグ活動概要～What is the GX League～.pdf) | 2026-11-12 |
| GX League endorsers (as of Feb 2023) | 679 companies, over 40% of Japan's CO2 emissions | [GX League (METI)](https://gx-league.go.jp/aboutgxleague/document/GXリーグ活動概要～What is the GX League～.pdf) | 2026-11-12 |
| GX League wind-down | Activities ended after FY2025 except reporting/settlement of voluntary trading | [GX League (METI)](https://gx-league.go.jp/) | 2026-11-12 |
| J-Credit registered projects (incl. transferred) | 1,497 projects | [J-Credit Scheme Secretariat](https://japancredit.go.jp/data/pdf/credit_002.pdf) | 2026-11-12 |
| J-Credit cumulative certified volume | 14.87 Mt-CO2 (after 69th committee) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/data/pdf/credit_002.pdf) | 2026-11-12 |
| J-Credit 2030 certification target | 15 Mt-CO2 by FY2030 | [J-Credit Scheme Secretariat](https://japancredit.go.jp/data/pdf/credit_002.pdf) | 2026-11-12 |
| Japan GHG net emissions FY2024 | Approx. 994 Mt-CO2e, -28.7% vs FY2013 | [Ministry of the Environment](https://www.env.go.jp/content/000394131.pdf) | 2026-11-12 |
| Japan CO2 emissions FY2024 | Approx. 971 Mt-CO2, -26.0% vs FY2013 | [Ministry of the Environment](https://www.env.go.jp/content/000394131.pdf) | 2026-11-12 |
| Implied emissions covered by GX-ETS | Roughly 600 Mt-CO2e (nearly 60% x ~994 Mt); indicative only | [Ministry of the Environment](https://www.env.go.jp/content/000394131.pdf) | 2026-11-12 |
| JCM partner country pages listed | 32 partner countries listed on JCM site (count) | [Government of Japan (JCM)](https://www.jcm.go.jp/jc/) | 2026-11-12 |
| J-Credit govt tender #4 (2018-01): renewable power avg price | JPY 1,716/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_04.pdf) | 2026-11-12 |
| J-Credit govt tender #5 (2018-04): renewable power avg price | JPY 1,724/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_05.pdf) | 2026-11-12 |
| J-Credit govt tender #6 (2019-01): renewable power avg price | JPY 1,830/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_06.pdf) | 2026-11-12 |
| J-Credit govt tender #7 (2019-04): renewable power avg price | JPY 1,801/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_07.pdf) | 2026-11-12 |
| J-Credit govt tender #8 (2020-01): renewable power avg price | JPY 1,851/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_08.pdf) | 2026-11-12 |
| J-Credit govt tender #9 (2020-06): renewable power avg price | JPY 1,887/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_09.pdf) | 2026-11-12 |
| J-Credit govt tender #10 (2021-01): renewable power avg price | JPY 2,191/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_10.pdf) | 2026-11-12 |
| J-Credit govt tender #11 (2021-04): renewable power avg price | JPY 2,536/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_11.pdf) | 2026-11-12 |
| J-Credit govt tender #12 (2022-01): renewable power avg price | JPY 2,995/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_12.pdf) | 2026-11-12 |
| J-Credit govt tender #13 (2022-04): renewable power avg price | JPY 3,278/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_13.pdf) | 2026-11-12 |
| J-Credit govt tender #14 (2023-05): renewable power avg price | JPY 3,246/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_14.pdf) | 2026-11-12 |
| J-Credit govt tender #4 (2018-01): energy-saving avg price | JPY 1,148/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_04.pdf) | 2026-11-12 |
| J-Credit govt tender #5 (2018-04): energy-saving avg price | JPY 1,395/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_05.pdf) | 2026-11-12 |
| J-Credit govt tender #6 (2019-01): energy-saving avg price | JPY 1,602/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_06.pdf) | 2026-11-12 |
| J-Credit govt tender #7 (2019-04): energy-saving avg price | JPY 1,506/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_07.pdf) | 2026-11-12 |
| J-Credit govt tender #8 (2020-01): energy-saving avg price | JPY 1,473/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_08.pdf) | 2026-11-12 |
| J-Credit govt tender #10 (2021-01): energy-saving avg price | JPY 1,500/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_10.pdf) | 2026-11-12 |
| J-Credit govt tender #11 (2021-04): energy-saving avg price | JPY 1,518/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_11.pdf) | 2026-11-12 |
| J-Credit govt tender #12 (2022-01): energy-saving avg price | JPY 1,574/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_12.pdf) | 2026-11-12 |
| J-Credit govt tender #13 (2022-04): energy-saving avg price | JPY 1,607/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_13.pdf) | 2026-11-12 |
| J-Credit govt tender #14 (2023-05): energy-saving avg price | JPY 1,551/t-CO2 (weighted avg, ex-tax) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_14.pdf) | 2026-11-12 |
| J-Credit govt tender #9 (2020-06): energy-saving | No successful bids | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_09.pdf) | 2026-11-12 |
| J-Credit govt tender #1 (2016-06): avg price | JPY 510/t-CO2 (1,000 t sold) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_01.pdf) | 2026-11-12 |
| J-Credit govt tender #2 (2017-01): avg price | JPY 1,594/t-CO2 (500,000 t sold) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_02.pdf) | 2026-11-12 |
| J-Credit govt tender #3 (2017-04): avg price | JPY 908/t-CO2 (500,000 t sold) | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_03.pdf) | 2026-11-12 |
| J-Credit govt tender #14 (2023-05): renewable volume sold | 256,204 t-CO2 sold vs 330,500 t bid | [J-Credit Scheme Secretariat](https://japancredit.go.jp/tender/data/nyuusatsukekka_14.pdf) | 2026-11-12 |
| Government tender sales ended | Secretariat no longer runs tenders; last (14th) tender May 2023 | [J-Credit Scheme Secretariat (METI/MOE/MAFF)](https://japancredit.go.jp/tender/) | 2026-11-12 |

## FAQ

**When did Japan's mandatory emissions trading start?**

In FY2026, from April 2026. The Act amendment was promulgated on 4 June 2025 and took effect on 1 April 2026, after a voluntary phase in FY2023–FY2025.

**Which companies must take part?**

Companies whose direct CO2 emissions average 100,000 tonnes or more over the previous three fiscal years — about 300–400 companies, nearly 60% of Japan's greenhouse gas emissions. Only direct CO2 (Scope 1) counts.

**What are the price ceiling and floor?**

For FY2026 the reference ceiling is ¥4,300 and the adjustment floor ¥1,700 per tonne of CO2. From FY2027 to FY2030 each year's price is the prior year's price × (1.03 + the projected change in the corporate goods price index).

**What happens if a company is short of allowances?**

It must surrender allowances equal to verified emissions by 31 January of the following year. Any shortfall costs the ceiling price × 1.1, which is ¥4,730 per tonne for FY2026 (a calculated value).

**Can J-Credits be used for compliance?**

Yes. J-Credits and JCM credits may cover up to 10% of a company's emissions each year.

**How are free allowances decided?**

By government sector benchmarks where they exist (for example coal-fired power, LNG power, cement, paper), or by past emissions reduced 1.7% a year for energy-related CO2 and 0.3% for process CO2.

**When does the allowance market open and when is the first surrender?**

The market is expected to open around autumn FY2027. Because FY2026 is a transition year, filing and allocation happen in FY2027 and the first surrender is due 31 January 2028.

**When do auctions start?**

Paid allocation for power generators is set to start in FY2033. A fossil fuel levy on upstream suppliers is set to start in FY2028.

## Not listed yet

- Ceiling and floor for FY2027 onward: formula only, values not yet published.
- The number of companies that actually filed by 30 September 2026: not published in the sources checked.
- The trigger for the ceiling mechanism (a proposal of three months above the ceiling is still under discussion).
- GX推進法改正の法律案概要・要綱など METI /files/ 配下のPDF（例 https://www.meti.go.jp/files/900015393.pdf） — curl は403、内蔵ブラウザでも本文の代わりに空の応答(HTTP 202・チャレンジ画面とみられる)が返り、本文を読めなかった。迂回はしていない。同内容は改正法本文(e-Gov)とニュースリリースで代替確認。
- 内閣官房 GX実行会議資料（cas.go.jp の PDF・index） — curl で PDF の代わりに HTML/404 が返り本文取得できず。
- GX推進機構 排出量取引制度ポータル（ets.gxa.go.jp） — 接続できず（応答なし）。
- 2026年9月30日までに実際に届出をした制度対象者の数 — 公式資料で数値を見つけられなかった（第10回小委資料は割当量の公表方法の議論のみ）。
- 2027年度の上限・下限価格の水準 — 小委で「2027年度の上下限価格の決定」が審議事項に挙がっているのみで、数値は未公表。
- GX-ETS第1フェーズの超過削減枠の取引量・約定価格の推移 — 取引所サイト由来の価格・売買の統計は掲載しない方針。政府(GXリーグ)側の集計資料も見つけられなかった。
- JPXカーボン・クレジット市場の月次・日次の価格推移（時系列） — 取引所サイト由来の価格は掲載しない方針のため収録していない。政府の公表値は見つけられなかった。
- GXリーグ参画企業数の最新値（2025年度） — 参画企業一覧ページは社名の羅列のみで総数の記載なし。英語版中間整理の「700社超（FY2024）」を代わりに収録。


---

# South Korea: 772 companies under a 2,537 Mt cap for 2026–2030, with power auctioning rising to 50%

_Last checked 2026-11-12 · https://asiacarbondesk.com/korea-k-ets/_

Asia's longest-running national cap-and-trade scheme entered its fourth phase in 2026. The cap is 2,537.30 Mt for five years, 2,362.99 Mt was allocated in advance to 772 companies, and power companies must buy a share that rises from 15% in 2026 to 50% in 2030 at auction. An 85 Mt market stability reserve now sits inside the cap.

## Key facts

- Allocated in advance: 2,363 Mt (to 772 companies on 29 Dec 2025 · 59 power, 713 others)
- Phase 4 cap 2026–30: 2,537 Mt (about 510 Mt a year · Phase 3 averaged 610 Mt)
- Covered companies: 772 (10,538 sites · 684 companies in 2021)
- Power auction share: 15%→50% (2026 to 2030 · non-power 15%, trade-exposed 0%)
- Market stability reserve: 85 Mt (inside the cap; in law since 29 Apr 2026)
- Penalty: 3× (the year's average market price, per missing tonne)

## In brief

- Phase 4 (2026–2030) has a cap of 2,537.30 Mt on a linear path, and 2,362.99 Mt was allocated in advance to 772 companies on 29 December 2025: 795.75 Mt to 59 power companies and 1,567.24 Mt to 713 others.
- Power companies buy 15% of their allowances at auction in 2026, rising to 50% in 2030; most industry (95% of the sector) stays fully free, so the effective auction share is 11.0%, up from 4.0% in Phase 3.
- The ministry said on 20 August 2026 that the allowance price had risen from about KRW 10,000 on average in 2025 to the KRW 30,000 range. Since 29 April 2026 the 85 Mt stability reserve can be used to adjust auction supply when auction prices leave a pre-set range.
- Companies that fall short pay up to three times the year's average market price per tonne, and may cover part of their obligation with offset credits up to a legal ceiling of 10%.

## Cap per phase, annual average (MtCO2e a year)

| Period | MtCO2e/yr |
|---|---|
| Phase 3 (2021–25) | 610 |
| Phase 4 (2026–30) | 510 |

## Maximum share of allowances given free, by phase (%)

| Period | % |
|---|---|
| Phase 1 | 100 |
| Phase 2 | 97 |
| Phase 3+ (ceiling) | 90 |

## Share of allowances power companies must buy at auction (%)

| Period | % |
|---|---|
| 2026 | 15 |
| 2027 | 20 |
| 2028 | 30 |
| 2029 | 40 |
| 2030 | 50 |

## From the 2012 Act to Phase 4

| Date | Event |
|---|---|
| 2012-05-14 | The ETS Act is enacted. |
| 2014-01 | Korea Exchange is designated as the allowance exchange. |
| 2015-01-01 | Phase 1 starts, with all allowances allocated free. |
| 2018-01-01 | Phase 2 starts, with 97% of allowances free. |
| 2021-01-01 | Phase 3 starts: five years, 684 companies, 3.03 billion t cap. |
| 2024-01 | Act amended to allow brokered trading and financial-sector participants. |
| 2025-11-11 | Cabinet adopts the 2035 NDC and the Phase 4 allocation plan. |
| 2025-11-24 | Trading through securities brokers begins. |
| 2025-12-29 | 2,362.99 Mt of Phase 4 allowances allocated to 772 companies. |
| 2026-04-29 | Market stability reserve rules take effect. |
| 2030 | Power-sector auction share reaches 50%; Phase 4 ends. |

## How a compliance year works

| Step | What happens |
|---|---|
| Allocation | Allowances for the whole phase are allocated before it starts; free shares are released year by year (KAU26–30). |
| Buy or trade | Extra allowances come from monthly government auctions or KRX trading (10:00–12:00). |
| Report | Verified emissions report within 3 months after the year ends. |
| Surrender | Surrender allowances within 8 months after the year ends; offsets may cover part, up to the plan's limit (ceiling 10%). |
| Penalty | Any shortfall can be charged up to 3× the year's average market price per tonne. |

## Who is covered

| Item | Rule or figure |
|---|---|
| Threshold | Company ≥125,000 tCO2e a year (3-year average), or a site ≥25,000 tCO2e |
| Gases | Greenhouse gases under the Carbon Neutrality Act, excluding NF3 |
| Companies, Phase 4 | 772: 59 power, 713 non-power (industry, transport, buildings) |
| Sites, Phase 4 | 10,538 |
| Phase 4 cap | 2,537.30 Mt: 2.10 bn free, 0.26 bn auctioned, 89 Mt new-entrant reserve, 85 Mt stability reserve |
| Outside the cap | 20 Mt market-making reserve |
| Leaving mid-phase | Possible if prior-year emissions fall below 3,000 tCO2e |

## Offset credits (KOC/KCU) at a glance

| Item | Rule |
|---|---|
| Use limit | Up to 10% of the surrender obligation by law; the exact limit is set in each allocation plan |
| Project start | Projects started on or after 3 December 2016 |
| Validity | Offset credits not banked or surrendered lapse 8 months after the compliance year |
| Market makers | KDB, IBK and KEXIM by law, plus licensed securities firms |
| Who can trade | Covered companies, market makers, and since 24 Nov 2025 financial firms via brokers |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| ETS Act enacted | 14 May 2012 (Act No. 11419) | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Phase 1 period | 1 Jan 2015 – 31 Dec 2017 (3 years) | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Phase 2 period | 1 Jan 2018 – 31 Dec 2020 (3 years) | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Phase 3 and Phase 4 periods | Phase 3: 2021–2025; Phase 4: 2026–2030 (5-year periods) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Length of a compliance period (current law) | 5 years | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Exchange designated | January 2014 (Korea Exchange) | [Korea Exchange (KRX) ETS Market Information Platform](https://ets.krx.co.kr/contents/OPN/01/01050401/OPN01050401.jsp) | 2026-11-12 |
| Market opening | January 2015 | [Korea Exchange (KRX) ETS Market Information Platform](https://ets.krx.co.kr/contents/OPN/01/01050401/OPN01050401.jsp) | 2026-11-12 |
| Free allocation, Phase 1 | 100% of allowances allocated free | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Free allocation, Phase 2 | 97% of allowances allocated free | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Free allocation ceiling, Phase 3 onwards | at most 90%, set in each allocation plan; may not exceed the previous period's ratio | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Coverage thresholds | Company average ≥125,000 tCO2e/yr over 3 years, or any site ≥25,000 tCO2e/yr | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Gases | Greenhouse gases under the Carbon Neutrality Act, excluding NF3 | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Phase 4 cap (2026–2030) | 2,537.30 MtCO2e, set on a linear reduction path | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 3 cap (2021–2025) | 3.03 billion t (annual average 610 Mt) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 cap, annual average | 510 Mt per year (2.54 billion t total) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Covered companies, Phase 3 | 684 (2021) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Covered companies, Phase 4 | 772 (2026) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Benchmark-method allocation: participation ratio against emissions, Phase 3 (not the share of national emissions) | 62% (participants' emissions basis) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Benchmark-method allocation: participation ratio against emissions, Phase 4 (not the share of national emissions) | 77% (benchmark-allocation row; 62% in Phase 3) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 pre-allocation | 2,362.99 Mt to 772 companies, allocated 29 Dec 2025 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Phase 4 power-sector allocation | 59 companies, 211 sites, 795.75 Mt | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Phase 4 non-power allocation | 713 companies, 10,327 sites, 1,567.24 Mt | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Covered sites, Phase 4 | 10,538 sites | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Phase 4 cap: free allocation | 2.10 billion t | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 cap: auctioned allocation | 0.26 billion t | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 new-entrant/expansion reserve | 89 Mt (inside the cap) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 market stability reserve (K-MSR) | 85 Mt, placed inside the cap for the first time | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 4 market-making reserve | 20 Mt, outside the cap | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Auction share, power sector, Phase 4 | 15% (2026), 20% (2027), 30% (2028), 40% (2029), 50% (2030) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Auction share, non-power sectors, Phase 4 | 15% for sectors not exempt (up from 10%); trade-exposed sectors 0% | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Trade-exposed industry kept at 100% free allocation | sectors covering 95% of industry (steel, petrochemicals, cement, semiconductors, etc.) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Effective auction share, Phase 3 | 4.0% | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Effective auction share, Phase 4 | 11.0% | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Power sector total auction share over the period | 29% in Phase 4 vs 10% in Phase 3 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727612) | 2026-11-12 |
| Benchmark coefficient | top 37% (Phase 3) moving stepwise to top 20% (Phase 4) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| Phase 3 over-allocation clawback (power) | 25.2 Mt over-allocated; 23.95 Mt recovered from companies | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) | 2026-11-12 |
| Emissions reporting deadline | within 3 months after the end of each compliance year | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Surrender deadline | within 8 months after the end of each compliance year | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Penalty surcharge for shortfall | up to 3× the average market price of that compliance year, per tonne | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Penalty base | 3× the year's exchange average price (total trade value ÷ total volume) | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Offset credit (KOC/KCU) use limit, legal ceiling | up to 10% of a company's surrender obligation; exact limit set in the allocation plan | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Offset project start date | projects started on or after 3 Dec 2016 (Paris Agreement entry into force in Korea) | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Offset credit validity | unsurrendered, unbanked offset credits lapse 8 months after the compliance year | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) | 2026-11-12 |
| Market makers | KDB, IBK and KEXIM by law, plus licensed securities firms by decree | [Korea Ministry of Government Legislation, National Law Information Center (law.go.kr)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) | 2026-11-12 |
| Brokered (consignment) trading start | 24 Nov 2025; banks, insurers, funds and pension funds can trade via brokers | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156730842) | 2026-11-12 |
| Trading hours | 10:00–12:00; auctions 14:00–15:00 (from 24 Nov 2025) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156730842) | 2026-11-12 |
| Brokerage legal basis | Act amended January 2024 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156730842) | 2026-11-12 |
| K-MSR made law | Decree amendment approved 21 Apr 2026, effective 29 Apr 2026; price corridor details to be set by August 2026 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156756850) | 2026-11-12 |
| K-MSR trigger | auction price outside a pre-set range (upper reserve-release price to lower auction-reserve price) | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156756850) | 2026-11-12 |
| Exit threshold during a period | a company may be removed if prior-year emissions fall below 3,000 tCO2e | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156756850) | 2026-11-12 |
| 2035 NDC | 53–61% below 2018 net emissions (742.3 Mt), adopted 11 Nov 2025 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) | 2026-11-12 |
| National GHG emissions 2025 (provisional) | 685.71 MtCO2e | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156782809) | 2026-11-12 |
| Government statement on price recovery | from about KRW 10,000 average last year to the KRW 30,000 range as of 20 Aug 2026 | [Ministry of Climate, Energy and Environment (MCEE), published on korea.kr](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156782809) | 2026-11-12 |

## FAQ

**What has happened to the K-ETS allowance price?**

The ministry said on 20 August 2026 that the price had risen from about KRW 10,000 on average in 2025 to the KRW 30,000 range. It did not give a daily price. Shortfalls are charged at up to three times the year's average market price.

**How many companies are covered in Phase 4?**

772 companies with 10,538 sites: 59 in power and 713 in industry, transport and buildings. In 2021 there were 684.

**How big is the Phase 4 cap?**

2,537.30 Mt for 2026–2030, about 510 Mt a year, down from about 610 Mt a year in Phase 3. 2,362.99 Mt was allocated in advance.

**How much must companies buy at auction?**

Power companies: 15% in 2026, rising to 50% in 2030. Non-power sectors that are not trade-exposed: 15%. Trade-exposed industry, about 95% of the sector, stays fully free. The effective auction share is 11.0%.

**What happens if a company does not surrender enough allowances?**

It can be charged up to three times that year's average market price for each missing tonne. Allowances are due within 8 months of the year's end.

**Can companies use offset credits?**

Yes. The decree caps offsets at 10% of the surrender obligation, with the exact limit set in the allocation plan. Projects must have started on or after 3 December 2016.

**Is there a price stabilisation mechanism?**

Yes. An 85 Mt market stability reserve sits inside the Phase 4 cap. Since 29 April 2026 it can be used to adjust auction supply when auction prices leave a pre-set range.

**Can financial firms trade Korean allowances?**

Yes, since 24 November 2025, through a licensed broker. Banks, insurers, fund managers and pension funds are included.

## Not listed yet

- Phase 1 and Phase 2 caps and company counts: not found in the official texts we read.
- The exact Phase 4 offset limit: the law sets a 10% ceiling, but the plan's figure was not in the texts we read.
- The market stability reserve's price range: due by August 2026; no official notice found.
- The limit on banking allowances into the next phase: seen only in press reports.
- Phase 1 and Phase 2 caps and company counts — Not found in the official texts read (only Phase 3 and Phase 4 figures are in the 2025 allocation plan release).
- Current numeric offset (KOC/KCU) limit for Phase 4 — Decree sets a 10% ceiling and the MCEE says the limit was kept, but the number in the Phase 4 plan was not in the texts read.
- Banking limit (multiple of net sales) — Seen only in press reports; official plan text not opened.
- K-MSR price corridor values — To be finalised by August 2026 per MCEE; no official notice found.
- Number of designated market makers — Not stated in the official texts read.
- Full allocation plan document and GIR statistics (gir.go.kr, me.go.kr) — Not opened; korea.kr copies of MCEE releases used instead.


---

# Singapore: a S$45 carbon tax, with up to 5% paid in international credits

_Last checked 2026-11-12 · https://asiacarbondesk.com/singapore-carbon-tax/_

Southeast Asia's first carbon price. About 50 large facilities pay S$45 per tonne of CO2e for 2026–27, and may use eligible international credits for up to 5% of their taxable emissions. Supply of those credits is still being built.

## Key facts

- Tax rate 2026–27: S$45 (per tCO2e · was S$25 in 2024–25 (+80%))
- Share of national emissions: ~70% (covered by the carbon tax)
- Taxable facilities: ~50 (each emitting ≥25,000 tCO2e a year)
- International credit limit: 5% (of taxable emissions, from 1 Jan 2024)
- Implementation agreements: 12 (signed; 9 in force; 0 projects registered yet)
- 2030 ambition: S$50–80 (per tCO2e; post-2027 path under review)

## In brief

- The carbon tax is S$45 per tonne CO2e for 2026 and 2027, up from S$25 in 2024–25 and S$5 in 2019–23; the Government aims for S$50–80 by 2030.
- It applies to about 50 facilities emitting 25,000 tCO2e or more a year and covers around 70% of national greenhouse gas emissions.
- Facilities may offset up to 5% of taxable emissions with eligible international carbon credits, but as of 2 November 2026 no project is yet registered under the 12 signed agreements.
- Unused 2025 credit quota rolls into 2026 at a conversion factor of 25/45; the 2024 quota expired.

## Carbon tax rate by emissions year, with the 2030 ambition (S$ per tCO2e)

| Period | Carbon tax rate |
|---|---|
| 2019 | 5 |
| 2020 | 5 |
| 2021 | 5 |
| 2022 | 5 |
| 2023 | 5 |
| 2024 | 25 |
| 2025 | 25 |
| 2026 | 45 |
| 2027 | 45 |
| 2028 | — |
| 2029 | — |
| 2030 | — |

## Implementation agreements signed, cumulative (end of year)

| Period | agreements |
|---|---|
| 2023 | 1 |
| 2024 | 2 |
| 2025 | 10 |
| 2026 | 12 |

## Share of national emissions covered by the carbon tax (%)

| Period | % |
|---|---|
| 2019 | 80 |
| 2022 (pre-rebasing) | 76 |
| 2022 (rebased) | 71 |
| 2026 | 70 |

## From the 2018 Act to the 2030 ambition

| Date | Event |
|---|---|
| 2018-03-20 | Parliament passes the Carbon Pricing Act. |
| 2019-01-01 | Carbon tax starts at S$5 per tCO2e, the first carbon pricing scheme in Southeast Asia. |
| 2020 | First tax payments, based on 2019 emissions. |
| 2022-02-18 | Budget 2022 announces the rate path: S$25 in 2024–25, S$45 in 2026–27, S$50–80 by 2030. |
| 2022-11-08 | Carbon Pricing (Amendment) Act 2022 passed; allows international credits up to a limit. |
| 2024-01-01 | Rate rises to S$25; facilities may offset up to 5% of taxable emissions with international credits. |
| 2025-10-06 | Mongolia signs an implementation agreement. |
| 2026-01-01 | Rate rises to S$45 for 2026 and 2027. |
| 2026-09-04 | Lao PDR signs an implementation agreement, the 12th. |
| 2027-09-30 | Payment deadline for 2026 emissions (rule: 30 September of the following year). |
| 2030 | Government ambition: S$50–80 per tCO2e. |

## How the tax is paid

| Step | What happens |
|---|---|
| Register | By 30 June of the year after the facility first passes the threshold. |
| Plan and measure | Monitoring Plan by 31 December of that year; direct (Scope 1) emissions measured. |
| Report | Third-party verified Emissions Report by 30 June of the following year. |
| Pay by 30 September | Pay by surrendering fixed-price carbon credits bought from the Government. |
| Optional offset | Up to 5% of taxable emissions may be covered with eligible international credits. |

## Who is covered

| Item | Rule |
|---|---|
| First threshold (reportable) | 2,000 tCO2e — measure and report only; no tax |
| Second threshold (taxable) | 25,000 tCO2e — verified report plus carbon tax |
| Sectors | Manufacturing; power, gas, steam and chilled water supply; water, sewage and waste |
| Gases | 7 greenhouse gases: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 |
| Emissions counted | Direct (Scope 1) emissions from fuel combustion and industrial processes |
| Not taxed separately | Petrol, diesel and CNG: excise duties apply instead |
| Facilities taxed | About 50 |
| Share of national emissions | Around 70% (about 80% with transport-fuel excise) |

## International carbon credits (ICC) at a glance

| Item | Status |
|---|---|
| Offset limit | Up to 5% of taxable emissions, from 1 January 2024 |
| Quality test | Article 6 compliance plus seven integrity principles |
| Credit window | Reductions or removals between 1 Jan 2021 and 31 Dec 2030 |
| Where from | Only host countries with an implementation agreement |
| Agreements signed | 12 (CMC FAQ, 2 Nov 2026); NEA's page, updated 19 Aug 2026, says 11 |
| Agreements in force | 9 of 12 (all except Paraguay, Papua New Guinea, Philippines) |
| Countries with an eligibility list | 6: Ghana, Bhutan, Peru, Rwanda, Thailand, Mongolia |
| Projects registered | 0 (as of 2 Nov 2026) |
| Time to first credits | Up to four years per project |
| Retirement registries | 5: ACR, ART, Global Carbon Council, Gold Standard, Verra |
| Roll-over | 2024 quota expired; unused 2025 quota carries to 2026 × 25/45 (example: 4,000 → 2,222) |
| Proceeds / cancellation | 5% of proceeds to adaptation; 2% of authorised credits cancelled |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Carbon tax rate, emissions years 2019-2023 | S$5/tCO2e | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Carbon tax rate, emissions years 2024-2025 | S$25/tCO2e | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Carbon tax rate, emissions year 2026 onwards (stated for 2026-2027) | S$45/tCO2e | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| 2030 rate ambition (current) | S$50-80/tCO2e by 2030 | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| 2030 ambition, lower bound | S$50/tCO2e | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) | 2026-11-12 |
| 2030 ambition, upper bound | S$80/tCO2e | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) | 2026-11-12 |
| 2030 ambition as set in Budget 2018 (superseded) | S$10-15/tCO2e by 2030 | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/6519d8ac-65b5-49fb-a663-a037c5e5e8e5/fy2018_budget_statement.pdf) | 2026-11-12 |
| Fixed-price carbon credit (FPCC) value by purchase year | S$5 (bought 2024 or earlier); S$25 (2025-26); S$45 (2027 onwards) | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Post-2027 trajectory status | Under review; future rates to be announced in advance | [NCCS / Prime Minister's Office](https://www.nccs.gov.sg/media/parliamentary-reply-by-dpm-gan-on-singapore-s-carbon-tax-trajectory-from-2028/) | 2026-11-12 |
| Carbon Pricing Bill first reading | 2 March 2018 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Carbon Pricing Act passed (second and third readings) | 20 March 2018 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Carbon Pricing Act commencement / tax start | 1 January 2019 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| First carbon pricing scheme in Southeast Asia | Implemented 1 January 2019 | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| First carbon tax payment | 2020, based on 2019 emissions | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/6519d8ac-65b5-49fb-a663-a037c5e5e8e5/fy2018_budget_statement.pdf) | 2026-11-12 |
| Budget 2022 announcement of rate increases | 18 February 2022 | [Ministry of Finance (MOF)](https://www.mof.gov.sg/news-resources/newsroom/budget-2022-charting-our-new-way-forward-together/) | 2026-11-12 |
| Budget 2022 rate path | S$25 (2024-25), S$45 (2026-27), S$50-80 by 2030 | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) | 2026-11-12 |
| Carbon Pricing (Amendment) Bill first reading | 3 October 2022 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Carbon Pricing (Amendment) Act 2022 passed | 8 November 2022 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Amended Regulations published | 6 October 2023 | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Amendment Act commencement | 1 January 2024 | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| First emissions threshold (reportable facility) | 2,000 tCO2e | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Second emissions threshold (taxable facility) | 25,000 tCO2e | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Reportable facilities: measured and reported but not taxed | 2,000-<25,000 tCO2e: report only, no tax | [NCCS](https://www.nccs.gov.sg/media/opening-speech-by-masagos-zulkifli-minister-for-the-environment-and-water-resources-at-the-second-reading-of-the-carbon-pricing-bill-20-march-2018/) | 2026-11-12 |
| Taxable facilities: verified reporting plus tax | Monitoring Plan, third-party verified Emissions Report, carbon tax | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax/measurement-and-reporting-requirements-for-greenhouse-gas-emissions) | 2026-11-12 |
| Covered sectors | Manufacturing; power/gas/steam/chilled water supply; water, sewage and waste | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Number of covered greenhouse gases | 7 gases: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Emissions basis | Direct (Scope 1) emissions from fuel combustion and IPPU | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Transport fuels excluded from carbon tax | No additional carbon tax on petrol, diesel, CNG (excise duties apply) | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) | 2026-11-12 |
| Number of taxable facilities | About 50 facilities | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Share of national GHG emissions covered by carbon tax | Around 70% | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Share covered by carbon tax plus transport fuel excise | About 80% | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Carbon tax coverage at introduction | Around 80% of national emissions | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| 2022 coverage after HFC rebasing | Around 71% (from 76%) | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| 2022 coverage before HFC rebasing | 76% | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Registration deadline | 30 June of the year after the trigger year | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Emissions Report deadline | 30 June of the year following the reporting period | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax/measurement-and-reporting-requirements-for-greenhouse-gas-emissions) | 2026-11-12 |
| Monitoring Plan deadline (taxable facilities) | 31 December of the year after the trigger year | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax/measurement-and-reporting-requirements-for-greenhouse-gas-emissions) | 2026-11-12 |
| Tax payment deadline | 30 September of the year after the emissions year (or 30 days after notice, if later) | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Payment instrument | Surrender of fixed-price carbon credits (FPCCs) bought from the Government | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Notice of ICC Use submission window | 1 July of emissions year to 30 June of following year | [National Environment Agency (NEA)](https://www.nea.gov.sg/docs/default-source/carbon-credits/icc-guidance-document-v1-2_8jul2026.pdf) | 2026-11-12 |
| Transition framework (allowances) for EITE firms | From 2024; allowances based on efficiency benchmarks and decarbonisation plans | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Transition framework excludes new investments | New investments do not qualify | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Expected carbon tax revenue, first five years (2018 estimate) | Nearly S$1 billion (2019-2023) | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/6519d8ac-65b5-49fb-a663-a037c5e5e8e5/fy2018_budget_statement.pdf) | 2026-11-12 |
| Net revenue from rate increase | No additional net revenue expected this decade | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Electricity tariff sensitivity | ~1% tariff rise per S$5/tCO2e increase | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Household impact of S$45 rate | About S$3/month for average 4-room HDB flat | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Household impact of S$25 rate (Budget 2022) | About S$4/month for average 4-room HDB household | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) | 2026-11-12 |
| Regular U-Save rebate ceiling | Up to S$380/year | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| Enhanced U-Save, FY2024 | Up to S$950 (2.5x regular) | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| ICC offset limit | Up to 5% of taxable emissions, from 1 January 2024 | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| ICC environmental integrity principles | Article 6 compliance plus seven principles | [National Climate Change Secretariat (NCCS)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) | 2026-11-12 |
| ICC vintage window | Reductions/removals between 1 Jan 2021 and 31 Dec 2030 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/environmental-integrity/eligibility-criteria/) | 2026-11-12 |
| ICCs only from IA host countries | Credits from non-IA countries not allowed | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/frequently-asked-questions/general-information/) | 2026-11-12 |
| Implementation Agreements signed (NEA page, updated 19 Aug 2026) | 11 | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Implementation Agreements signed (CMC FAQ, updated 2 Nov 2026) | 12: PNG, Ghana, Bhutan, Peru, Chile, Rwanda, Paraguay, Thailand, Mongolia, Vietnam, Philippines, Lao PDR | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/frequently-asked-questions/general-information/) | 2026-11-12 |
| IAs entered into force | 9 of 12 (all except Paraguay, PNG, Philippines) | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/our-art6-cooperation/) | 2026-11-12 |
| Countries listed in MOU table | 17 countries (Colombia, Costa Rica, Dominican Republic, Brazil, Bhutan, Cambodia, Lao PDR, Philippines, Malaysia, Sri Lanka, Kenya, Morocco, Senegal, Zambia, Malawi, Ethiopia, Fiji) | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/our-art6-cooperation/) | 2026-11-12 |
| Share of proceeds for adaptation | 5% | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/our-art6-cooperation/) | 2026-11-12 |
| OMGE cancellation at issuance | 2% of authorised credits | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/our-art6-cooperation/) | 2026-11-12 |
| Countries with application calls launched | Bhutan, Ghana, Peru, Rwanda, Thailand | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Mongolia application process opened | 8 October 2026 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Host countries with published Eligibility List | 6: Ghana, Bhutan, Peru, Rwanda, Thailand, Mongolia | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/environmental-integrity/overall-eligibility-list/) | 2026-11-12 |
| Projects on IA Project Register | 0 registered (as of 2 Nov 2026) | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/project-register/) | 2026-11-12 |
| Project lead time to generate credits | Up to four years | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Carbon crediting programme registries for ICC retirement | 5: ACR, ART, Global Carbon Council, Gold Standard, Verra | [National Environment Agency (NEA)](https://www.nea.gov.sg/docs/default-source/carbon-credits/icc-guidance-document-v1-2_8jul2026.pdf) | 2026-11-12 |
| Roll-over of unused 2024 ICC limit | Up to 5% of 2024 taxable emissions rolled to EY2025 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/frequently-asked-questions/general-information/) | 2026-11-12 |
| 2024 roll-over quota expiry | Expires; cannot be carried beyond 2025 | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Roll-over of unused 2025 ICC limit to 2026 | Allowed, adjusted by credit conversion factor | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Credit conversion factor 2025 to 2026 | (A - B) x (25/45), rounded down | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| NEA worked example: rolled-over quota | 4,000 x (25/45) = 2,222 credits | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Credit conversion factor as decimal | 25/45 = 0.5556 | [National Environment Agency (NEA)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) | 2026-11-12 |
| Rate multiple, 2024 vs 2019-23 | 5x (S$25 / S$5) | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Rate increase, 2026 vs 2024-25 | +80% (S$45 / S$25 - 1) | [Singapore Statutes Online, Attorney-General's Chambers](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) | 2026-11-12 |
| Budget 2018 confirms carbon tax design | Tax on all facilities emitting 25,000 tCO2e or more, from 2019 | [Ministry of Finance (MOF)](https://isomer-user-content.by.gov.sg/153/6519d8ac-65b5-49fb-a663-a037c5e5e8e5/fy2018_budget_statement.pdf) | 2026-11-12 |
| Implementation Agreement signed: Papua New Guinea | 2023-12-08 | [NCCS](https://www.nccs.gov.sg/media/singapore-signs-first-implementation-agreement-with-papua-new-guinea-on-carbon-credits/) | 2026-11-12 |
| Implementation Agreement signed: Ghana | 2024-05-27 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Bhutan | 2025-02-28 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Peru | 2025-04-01 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Chile | 2025-04-07 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Rwanda | 2025-05-06 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Paraguay | 2025-05-23 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Thailand | 2025-08-19 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Vietnam | 2025-09-16 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Mongolia | 2025-10-06 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Philippines | 2026-06-08 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Implementation Agreement signed: Lao PDR | 2026-09-04 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| First IA call for projects (Ghana) | 30 September 2024 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Cumulative IAs signed by end-2023 | 1 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Cumulative IAs signed by end-2024 | 2 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Cumulative IAs signed by end-2025 | 10 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |
| Cumulative IAs signed by end-2026 | 12 | [Singapore's Carbon Markets Cooperation (Government of Singapore)](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) | 2026-11-12 |

## FAQ

**How much is Singapore's carbon tax in 2026?**

S$45 per tonne of CO2e for emissions in 2026 and 2027. It was S$25 in 2024–2025 and S$5 in 2019–2023. The Government aims for S$50–80 by 2030, and the path after 2027 is under review.

**Who has to pay the carbon tax?**

Facilities that emit 25,000 tCO2e or more of direct emissions a year — about 50 facilities in manufacturing, energy supply, and water and waste. Facilities between 2,000 and 25,000 tCO2e only measure and report.

**How much of Singapore's emissions does the tax cover?**

Around 70% of national greenhouse gas emissions (about 80% if the excise duties on transport fuels are counted).

**Can companies use carbon credits to pay the tax?**

Yes, up to 5% of taxable emissions, from 1 January 2024, using eligible international carbon credits that meet Article 6 rules and seven integrity principles. The rest is paid with fixed-price credits bought from the Government.

**Are international credits actually available yet?**

Not yet at scale. Twelve implementation agreements are signed and six host countries have published eligibility lists, but as of 2 November 2026 zero projects are registered, and projects can take up to four years to issue credits.

**What happens to unused 2025 credit quota?**

It can roll into 2026, multiplied by 25/45 because the tax rose from S$25 to S$45. NEA's example: 4,000 unused becomes 2,222. Quota carried from 2024 into 2025 has expired.

**When is the tax paid?**

By 30 September of the year after the emissions year, so the 2026 bill is due by 30 September 2027.

**Is the carbon tax passed on to households?**

Indirectly. The Government estimates about 1% on electricity tariffs per S$5 of tax, or around S$3 a month for an average 4-room HDB flat at S$45.

## Not listed yet

- Carbon tax revenue actually collected: published only combined with other duties.
- The share of free allowances under the transition framework: stated only as 'a portion'.
- Standalone carbon tax revenue (actual collections) — MOF publishes only the combined 'Customs, Excise and Carbon Taxes' line (FY2025 analysis); no separate carbon tax figure found on official pages. Only the 2018 estimate (nearly S$1bn over 5 years) is confirmed.
- Transition framework allowance share (% of emissions) — NCCS/NEA/MOF pages say allowances cover 'only a portion' of emissions; no percentage published on pages read.
- NEA Tables 2-4 (reckonable vs non-reckonable, gases, obligations by threshold) — Published as images on the NEA carbon tax page; text not machine-readable, so not transcribed.
- Number of methodologies on each Eligibility List — Country-specific Eligibility List documents were not opened; only the list of 6 host countries is confirmed.
- ICC prescribed limit in Regulations text (5%) — Carbon Pricing (Carbon Tax and Carbon Credits Registry) Regulations on SSO not opened; 5% confirmed from NEA/NCCS/MOF instead. Plain curl to SSO returned HTTP 403; Act read via in-app browser.
- Section 20B allowance period — Text read was truncated before the period end; not recorded.
- Original NCCS URL /mitigation-efforts/carbon-tax/ — Returns 404; current page is /mitigation-efforts/carbontax/.
- Discrepancy note: IA count — NEA page (updated 19 Aug 2026) says 11 IAs; CMC FAQ (2 Nov 2026) says 12 after Lao PDR signing on 4 Sep 2026. Both recorded.


---

# Taiwan: a NT$300 carbon fee, cut to NT$50–100 for plants with approved reduction plans

_Last checked 2026-11-12 · https://asiacarbondesk.com/taiwan-carbon-fee/_

Taiwan charges large power, gas and manufacturing plants for their emissions from 2025. In the first year, 461 plants paid, and 402 of them had reduction plans approved that let them pay a lower rate. A review of the NT$300 rate ended without agreement on 2 November 2026.

## Key facts

- General rate: NT$300 (per tCO2e, in force from 1 Jan 2025)
- Preferential rates: NT$50 / 100 (for plants meeting approved reduction-plan targets)
- First-year payers: 461 (plants (240 companies), all paid by May 2026)
- Approved reduction plans: 402 (plants; 45.2 Mt expected cut by 2030)
- Share of national emissions: ~54% (about 155 MtCO2e (pre-launch estimate))
- Suggested 2030+ rate: NT$1,200–1,800 (committee benchmark; no rise agreed yet)

## In brief

- Plants in power, gas supply and manufacturing whose direct plus electricity emissions reach 25,000 tCO2e a year pay NT$300 per tonne; plants with an approved voluntary reduction plan that meet their targets pay NT$50 or NT$100.
- The fee started with 2025 emissions. By May 2026 all 461 first-year plants (240 companies) had paid, and 402 had approved plans covering 45.2 MtCO2e of cuts by 2030.
- Domestic carbon credits can cover up to 10% of chargeable emissions and recognised foreign credits up to 5%; high carbon-leakage firms pay on only 20% of emissions in phase 1 but cannot use foreign credits.
- The rate committee suggested NT$1,200–1,800 for 2030 onward and rises every 2 years, but its 2 November 2026 review ended with no consensus.

## Carbon fee rates by emissions year, with the committee's suggested 2030 range (NT$ per tCO2e)

| Period | General rate | Preferential rate B | Preferential rate A |
|---|---|---|---|
| 2025 | 300 | 100 | 50 |
| 2026 | 300 | 100 | 50 |
| 2027 | — | — | — |
| 2028 | — | — | — |
| 2029 | — | — | — |
| 2030 | — | — | — |

## From estimate to payment: plants and reduction plans

| Period | plants |
|---|---|
| Est. payers (pre-launch) | 500 |
| Plan applications 2025 | 430 |
| Cleared by 6 Feb 2026 | 190 |
| First-year payers | 461 |
| Plans approved (Nov 2026) | 402 |

## Where the planned cuts come from (MtCO2e a year at full operation, 2030 vs 2025)

| Period | MtCO2e/yr |
|---|---|
| Low-carbon fuels | 26.31 |
| Process & efficiency | 18.82 |
| Renewable energy | 2.32 |

## Share of emissions charged for high carbon-leakage firms, by phase

| Period | coefficient |
|---|---|
| Phase 1 | 0.2 |
| Phase 2 | 0.4 |
| Phase 3 | 0.6 |
| Other firms | 1 |

## From the 2023 Act to the 2030 targets

| Date | Event |
|---|---|
| 2023-02-15 | Climate Change Response Act amended, giving a legal basis for carbon fees. |
| 2024-03-01 | Carbon Fee Rate Review Committee formed. |
| 2024-08-29 | Three implementing regulations issued. |
| 2024-10-21 | Rates announced: NT$300 general, NT$50 and NT$100 preferential. |
| 2025-01-01 | Rates take effect; 2025 emissions are the first charged. |
| 2025-04 | Trial filing from April to June, without payment. |
| 2026-01-12 | Review principles for high carbon-leakage firms issued. |
| 2026-05 | All 461 first-year plants pay. |
| 2026-08-27 | UK lists Taiwan's carbon fee as a qualifying scheme for its CBAM. |
| 2026-09-01 | Fee and plan regulations amended. |
| 2026-11-02 | Rate review ends with no consensus; more data requested. |
| 2027-05-31 | Payment deadline for 2026 emissions (rule: end of May). |
| 2030 | Target year for reduction plans; committee's suggested NT$1,200–1,800 benchmark. |

## How the fee is paid

| Step | What happens |
|---|---|
| Claim leakage status | By 31 January of the payment year, if the firm seeks high carbon-leakage treatment. |
| Report plan progress | Plants with a reduction plan report the previous year's progress by 30 April. |
| Calculate | (Annual emissions − 25,000 t) × adjustment coefficient × rate; K is 0 for high-leakage firms. |
| Deduct credits | Domestic credits up to 10% and recognised foreign credits up to 5% of chargeable emissions. |
| File and pay by end of May | Self-assessed fee paid into the designated account for the previous calendar year. |

## Who is covered

| Item | Rule |
|---|---|
| Threshold | 25,000 tCO2e a year, direct plus electricity-indirect emissions |
| Sectors | Power, gas supply and manufacturing |
| Deduction (K) | First 25,000 t not charged; K = 0 for high carbon-leakage firms |
| Payers | 461 plants (240 companies) in the first year; about 500 estimated before launch |
| Covered emissions | About 155 MtCO2e, about 54% of the national total (pre-launch estimate) |
| High-leakage adjustment | Charged on 20%, 40%, then 60% of emissions by phase; others 100% |
| High-leakage industries | 17 industries by sector test, plus firm-level tests |
| Rate A target | Sector cuts by 2030 vs 2021: steel 25.2%, cement 22.3%, others 42% |
| Rate B target | Technology benchmarks against the 2018–2022 average |

## Carbon credits and the exchange at a glance

| Item | Rule or status |
|---|---|
| Domestic credit limit | Up to 10% of chargeable emissions |
| Project credits | Each tonne of voluntary or offset project credit deducts 1.2 t |
| Early-action credits | Deduct at 0.3 (0.1 for high-leakage firms); only in the first 3 years |
| Early-action stock | Even 44 Mt of these credits could deduct at most 4.4 Mt at 0.1 |
| Foreign credit limit | Up to 5%, MOENV-recognised only; not for high-leakage firms |
| Exchange | Taiwan Carbon Solution Exchange (TCX), set up by TWSE and the National Development Fund |
| Domestic trading | TCX is the exclusive platform under Article 36 of the Act |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| General carbon fee rate | NT$300 per tCO2e | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Preferential rate A (sector-specific reduction target) | NT$50 per tCO2e | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/JVJaWd1E9o3ZFXw) | 2026-11-12 |
| Preferential rate B (technology-benchmark reduction target) | NT$100 per tCO2e | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/JVJaWd1E9o3ZFXw) | 2026-11-12 |
| Rate notice issued and effective date | Rates announced 21 Oct 2024; effective 1 Jan 2025 | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Rate Review Committee formed; 6 meetings in 2024 | Committee formed 1 Mar 2024; 6 meetings Mar–Oct 2024 | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Committee's suggested rate range for 2030 and after | NT$1,200–1,800 per tCO2e (suggested benchmark, not set) | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Committee's recommended step period for rate rises | Rates to rise in stages, every 2 years | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Rate review completed | Committee completed the rate review on 7 Oct 2024 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Rate pre-announcement | MOENV pre-announced the rates on 8 Oct 2024 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Three implementing regulations issued | 3 carbon fee sub-regulations issued 29 Aug 2024 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Threshold and sectors | Plants with direct + electricity-indirect emissions ≥25,000 tCO2e/yr in power, gas supply and manufacturing | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Estimated payers (pre-launch, 2022 inventory) | About 500 plants (281 companies, 141 listed) | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Emissions of fee payers (pre-launch estimate) | About 155 MtCO2e | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Share of national emissions (pre-launch estimate) | About 54% of national total | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| First-year payers | 461 plants (240 companies), all paid by May 2026 | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14034) | 2026-11-12 |
| Plants with approved voluntary reduction plans | 402 of 461 first-year plants | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Expected reduction from approved plans by 2030 | 45.2 MtCO2e by 2030 | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Green investment planned in approved plans | About NT$738.2 billion | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Filing and payment deadline | By end of May each year, for the previous calendar year's emissions | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Chargeable emissions formula and K value | (Annual emissions − K) × adjustment coefficient; K = 25,000 tCO2e, K = 0 for high carbon-leakage firms | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Emission adjustment coefficient, high-leakage, phase 1 | 0.2 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Emission adjustment coefficient, high-leakage, phase 2 | 0.4 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Emission adjustment coefficient, high-leakage, phase 3 | 0.6 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Emission adjustment coefficient, other firms | 1 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Domestic credit offset limit | Up to 10% of chargeable emissions | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Deduction ratio for voluntary / offset project credits | 1 credit deducts 1.2 t | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Deduction ratio for early-action project credits | 0.3 (other firms) or 0.1 (high-leakage firms); usable only in first 3 years | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Foreign credit offset limit | Up to 5% of chargeable emissions; MOENV-recognised credits; not for high-leakage firms | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Voluntary reduction plan progress report deadline | By 30 April each year, for the previous year | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020140) | 2026-11-12 |
| Plan application cut-off for same-year preferential rate | Apply by 30 June to get the preferential rate from the year of application | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020140) | 2026-11-12 |
| Plan review period | Decision within 3 months | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020140) | 2026-11-12 |
| Sector reduction target, steel (rate A) | 25.2% by 2030 vs 2021 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Sector reduction target, cement (rate A) | 22.3% by 2030 vs 2021 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Sector reduction target, other industries (rate A) | 42% by 2030 vs 2021 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Technology-benchmark target base years (rate B) | Base = average of 2018–2022 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Overpayment refund threshold | Refund on request if overpayment ≥ NT$2,000 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Record retention | 6 years | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Instalment threshold for back payments | Back payment ≥ NT$5 million may be paid in instalments | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Late payment surcharge | 0.5% of unpaid amount per day; enforcement after 30 days | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) | 2026-11-12 |
| Penalty for under-reporting | Fee recalculated at 2× the rate; back-collection up to 5 years | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) | 2026-11-12 |
| Climate Change Response Act amended | 15 Feb 2023 | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) | 2026-11-12 |
| Long-term target in the Act | Net-zero GHG emissions by 2050 (ROC year 139) | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) | 2026-11-12 |
| Longer-term plan | Gradually develop a cap-based emissions trading system (Act Art. 34) | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Future ETS shortfall penalty in the Act | 3× carbon market price per tonne, capped at NT$1,500/t | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) | 2026-11-12 |
| Voluntary reduction plan applications, 2025 | 430 plants (67 chose sector targets, 363 technology benchmarks) | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Applications withdrawn or lapsed | 24 plants | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Plans cleared by review panel, as of 6 Feb 2026 | 190 plants (185 more past first review; 31 in first review) | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Reduction measures in submitted plans | 2,781 measures | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Annual reduction at full operation (2030 vs 2025), submitted plans | About 47.45 MtCO2e a year | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Reduction from low-carbon fuel switching | 26.31 MtCO2e/yr (55.4%), 123 measures | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Reduction from process improvement & energy efficiency | 18.82 MtCO2e/yr (39.7%), 2,282 measures | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Reduction from renewable energy | 2.32 MtCO2e/yr (4.9%), 376 measures | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| High carbon-leakage review principles | Issued 12 Jan 2026; 17 industries qualify by sector (leakage risk value > 0.2%) | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) | 2026-11-12 |
| Feb 2026 committee resolution | Recommends phased rate rises with 2030 as the horizon | [Climate Change Administration (CCA), Ministry of Environment](https://service.cca.gov.tw/File/Get/cca/zh-tw/MJX5lArfODwFxjw) | 2026-11-12 |
| Nov 2026 rate review | 2 Nov 2026: 3 options (no change / general rate only / both); 19 members; no consensus | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Members attending the Nov 2026 review | 19 members (first meeting of the 2nd committee) | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) | 2026-11-12 |
| Committee meetings listed by CCA (Mar 2024–Feb 2026) | 8 meetings | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/carbon-fee-rate-committee/review-status/2309.html) | 2026-11-12 |
| Sept 2026 amendments | 1 Sep 2026: first-time entrants pay from the year after their first verified inventory | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14034) | 2026-11-12 |
| Unused early-action credits and maximum deduction | Even at 44 Mt of credits, ratio 0.1 allows at most 4.4 Mt | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/13854) | 2026-11-12 |
| UK CBAM recognition | Listed 27 Aug 2026 as a UK CBAM qualifying carbon pricing scheme, one of 16 | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14025) | 2026-11-12 |
| UK CBAM first filing and payment deadline | 31 May 2028 | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14025) | 2026-11-12 |
| NDC 3.0 targets | −28±2% by 2030; −38±2% by 2035 | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |
| Estimated 2025 net emissions vs 2005 | −8.7% | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |
| Carbon exchange founders | TCX set up by the Taiwan Stock Exchange and the National Development Fund | [Taiwan Carbon Solution Exchange (TCX)](https://www.tcx.com.tw/en/) | 2026-11-12 |
| TCX role in domestic credits | Exclusively entrusted by MOENV under Act Art. 36 to run domestic credit trading | [Taiwan Carbon Solution Exchange (TCX)](https://www.tcx.com.tw/en/) | 2026-11-12 |
| Trial filing year | Apr–Jun 2025 trial filing, no payment | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| Plan deadline for preferential rate in first payment | Apply for a voluntary reduction plan by 30 Jun 2025 | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| First payment window | Apr–May 2026, for 2025 emissions | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) | 2026-11-12 |
| High-leakage application deadline | By 31 January of the payment year | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Worked example: non-leakage plant at general rate | 100,000 t emitted: (100,000 − 25,000) × 1 × NT$300 = NT$22.5 million (calc from f01, f20, f24) | [Laws & Regulations Database of the ROC (Ministry of Justice)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) | 2026-11-12 |
| Rate committee meetings by year | 2024: 6; 2025: 1; 2026: 2 (calc from f57 list plus the 2 Nov 2026 meeting, f55) | [Climate Change Administration (CCA), Ministry of Environment](https://www.cca.gov.tw/affairs/carbon-fee-fund/carbon-fee-rate-committee/review-status/2309.html) | 2026-11-12 |
| Draft rules for recognising foreign credits pre-announced | 12 Nov 2026: MOENV pre-announced the draft Foreign Emission Reduction Credit Recognition Rules, under Act Art. 27 | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Who may apply for recognition (draft) | 3 groups: carbon fee payers, cap-and-trade entities, and bodies designated by the central financial authority | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Earliest vintage of recognisable foreign credits (draft) | Generated in 2021 or later | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Project types excluded (draft) | 3 excluded: nuclear, controversial logging/forestry projects, measures extending fossil fuel use | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Host authorisation and corresponding adjustment (draft) | Host-country authorisation and a completed corresponding adjustment are required | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Use restriction on recognised credits (draft) | Only for statutory obligations (carbon fee deduction or cap-and-trade offset); not for ESG or product carbon-neutral claims | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Public comment period on the draft | 30 days from the day after publication in the Executive Yuan Gazette | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Disclosure of recognised credits (draft) | Project source, type, recognised quantity and cancellation to be published on a government platform | [Ministry of Environment (MOENV), Climate Change Administration](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) | 2026-11-12 |
| Real GDP growth set against emissions, 2015–2025 (MOENV comparison) | Real GDP +47.6% over 2015–2025, alongside an 8.7% emissions reduction | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |
| Net emissions trend since 2021 | Net emissions down 4 consecutive years from 2021; average annual fall above 2% | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |
| Electricity share of final energy use, 2025 | 34.8% | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |
| NDC 3.0 implementation programmes | 20 flagship programmes across 6 sectors | [Ministry of Environment (MOENV)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) | 2026-11-12 |

## FAQ

**How much is Taiwan's carbon fee?**

NT$300 per tonne of CO2e at the general rate, from 1 January 2025. Plants that meet the targets of an approved voluntary reduction plan pay NT$100 (rate B) or NT$50 (rate A).

**Who has to pay?**

Power, gas supply and manufacturing plants whose direct plus electricity-related emissions reach 25,000 tCO2e a year. In the first year that meant 461 plants owned by 240 companies.

**How is the fee calculated?**

(Annual emissions − 25,000 t) × adjustment coefficient × rate. For a plant emitting 100,000 t at the general rate: 75,000 × NT$300 = NT$22.5 million. High-leakage firms get no 25,000 t deduction but are charged on only 20% of emissions in phase 1.

**When is it paid?**

By the end of May each year for the previous calendar year. The first payment, for 2025 emissions, was completed in May 2026; the 2026 bill is due by end-May 2027.

**Can carbon credits be used?**

Yes. Domestic credits can cover up to 10% of chargeable emissions (project credits count 1.2 t each) and MOENV-recognised foreign credits up to 5%, but high-leakage firms cannot use foreign credits.

**Will the rate go up?**

Not decided. The committee suggested NT$1,200–1,800 per tonne for 2030 onward, with rises every 2 years, but the 2 November 2026 review weighed three options and reached no consensus.

**What happens if a plant pays late or under-reports?**

Late payment adds 0.5% of the unpaid amount per day, with enforcement after 30 days. Under-reporting is charged at twice the rate, with back-collection for up to 5 years.

**Does the UK CBAM recognise Taiwan's carbon fee?**

Yes. On 27 August 2026 the UK listed it as one of 16 qualifying carbon pricing schemes. Relief still depends on the effective carbon price actually paid; the first UK CBAM payment is due 31 May 2028.

## Not listed yet

- Total carbon fee revenue for 2025 emissions: no official figure found.
- Actual chargeable emissions in the first year: only the pre-launch 155 Mt (54%) estimate is published.
- Number of firms recognised as high carbon-leakage, and the dates of each coefficient phase.
- Date of the next rate review meeting.
- Total carbon fee revenue collected for 2025 emissions — No official figure found on CCA/MOENV pages checked (only that all 461 plants paid).
- Actual chargeable emissions in the first year — Not published in the sources opened; only pre-launch 155 Mt / 54% estimate.
- Date of the next rate review meeting — MOENV says the review continues at the next meeting but gives no date.
- Number of firms recognised as high carbon-leakage — Only applications were mentioned by a member in Feb 2026 minutes; no official approved count found.
- Length of each high-leakage coefficient phase — Regulation sets 0.2/0.4/0.6 by phase but no phase dates; Nov 2026 MOENV asks for a phasing plan.
- Rate Review Committee minutes for 2 Nov 2026 — Not yet posted on the CCA review-status page (list ends 12 Feb 2026); MOENV press release used.
- English versions on law.moj.gov.tw/Eng and moenv.gov.tw/en — Chinese official texts used; the earlier English MOENV press release returned a bot-check (403) and was not retried.
- TCX founding date and international credit trading volumes — Not stated on the TCX pages opened.


---

# Thailand: a THB 200 per tonne carbon price sits inside fuel excise, while an emissions trading law is still a draft

_Last checked 2026-11-12 · https://asiacarbondesk.com/thailand-carbon-pricing/_

This page covers Thailand's only binding carbon price: since March 2025 the excise tax on fuels has carried a carbon component set at THB 200 per tCO2e. It also tracks the voluntary T-VER crediting programme and the draft Climate Change Act, which would create an emissions trading scheme but has not been passed.

## Key facts

- Carbon price in fuel excise: THB 200 (per tCO2e · in force since March 2025)
- Carbon component, diesel: THB 0.548 (per litre · gasoline THB 0.447)
- Fuel product lines priced: 15 (from gasoline to LPG and fuel oil)
- T-VER credits issued, FY2026: 4.36m (tCO2e · 28.2m cumulative since FY2014)
- T-VER projects registered, FY2026: 101 (a record; 75 in forestry and agriculture)
- Draft Climate Change Act: 205 (sections · cabinet approval 2 Dec 2025; not yet law)

## In brief

- Thailand prices carbon at THB 200 per tCO2e inside the excise tax on fuels, under an Excise Department notification issued on 28 March 2025; the carbon part is THB 0.447 per litre of gasoline and THB 0.548 per litre of diesel.
- The Excise Department says the first phase re-expresses existing fuel excise as a carbon tax without adding to the current tax burden.
- The voluntary T-VER programme issued 4,355,196 tCO2e of credits in fiscal 2026 and has issued 28,247,683 tCO2e since fiscal 2014; traded credits have averaged about THB 86 per tonne.
- An emissions trading scheme exists only in the draft Climate Change Act (205 sections), approved in principle by the cabinet on 2 December 2025 and under Council of State review since 5 May 2026.

## T-VER credits issued by fiscal year (tCO2e)

| Period | tCO2e |
|---|---|
| 2015 | 339,537 |
| 2016 | 249,612 |
| 2017 | 493,207 |
| 2018 | 887,523 |
| 2019 | 1,262,757 |
| 2020 | 2,578,321 |
| 2021 | 3,030,038 |
| 2022 | 4,673,841 |
| 2023 | 3,444,918 |
| 2024 | 3,535,918 |
| 2025 | 3,396,815 |
| 2026 | 4,355,196 |

## T-VER projects registered by fiscal year

| Period | projects |
|---|---|
| 2014 | 9 |
| 2015 | 11 |
| 2016 | 19 |
| 2017 | 41 |
| 2018 | 50 |
| 2019 | 50 |
| 2020 | 45 |
| 2021 | 32 |
| 2022 | 53 |
| 2023 | 54 |
| 2024 | 96 |
| 2025 | 93 |
| 2026 | 101 |

## Carbon component of diesel excise by biodiesel share (THB per litre)

| Period | THB/litre |
|---|---|
| B0 | 0.548 |
| ≤4% | 0.537 |
| 4-7% | 0.518 |
| 7-9% | 0.504 |
| 9-14% | 0.485 |
| 14-19% | 0.458 |
| 19-24% | 0.431 |

## Carbon component of excise by fuel (THB per litre; LPG per kg)

| Period | THB per litre (LPG per kg) |
|---|---|
| Gasoline | 0.447 |
| E10 | 0.403 |
| E20 | 0.358 |
| E85 | 0.069 |
| Kerosene | 0.498 |
| Jet fuel | 0.498 |
| Diesel | 0.548 |
| Fuel oil | 0.618 |
| LPG (kg) | 0.623 |

## Average traded T-VER price by project type (THB per tCO2e)

| Period | THB/tCO2e |
|---|---|
| Renewables | 39.95 |
| Ind. wastewater | 123.99 |
| Solid waste | 172.68 |
| Forestry & agri | 411.21 |

## From the first T-VER projects to the draft Climate Change Act

| Date | Event |
|---|---|
| 2014 | First T-VER projects registered with TGO (9 in fiscal 2014). |
| 2024-09-30 | Excise Department says the first phase will turn existing fuel excise into a carbon tax with no extra burden. |
| 2024-12-11 | Cabinet backs a plan to prepare for border carbon adjustments (CBAM), later cited as the basis for the carbon price. |
| 2025-03-28 | Excise Department issues the notification setting a THB 200 per tCO2e carbon price for fuels. |
| 2025-03-29 | The carbon price takes effect, from the day after issue. |
| 2025-04-22 | The notification is published in the Royal Gazette. |
| 2025-12-02 | Cabinet approves the draft Climate Change Act (205 sections) in principle, including an ETS. |
| 2026-02-20 | Excise Department signs an MOU with 18 companies on a digital oil-data link for a future carbon tax. |
| 2026-05-05 | The Council of State begins its first-round review of the draft Act. |
| 2026-09-30 | Fiscal 2026 closes with a record 101 T-VER registrations and 4.36 million tCO2e issued. |

## How the carbon price works inside fuel excise

| Step | What happens |
|---|---|
| Set the price | Excise Department notification fixes the carbon price at THB 200 per tCO2e. |
| Apply emission factors | Each fuel's emission factor per unit converts the price into a per-litre (or per-kg) amount. |
| Show it in the tariff | Ministerial Regulation No. 41 (2025) splits the excise rate to show the carbon component. |
| Collected with excise | Producers and importers pay it as part of fuel excise, e.g. THB 0.548 per litre of diesel. |
| Signal to consumers | The total excise burden was not raised; two retailers show the carbon emitted per fill. |

## Coverage and design

| Item | Rule |
|---|---|
| Gasoline / gasohol | THB 0.447 per litre (gasoline); E10 0.403; E20 0.358; E85 0.069 |
| Kerosene and jet fuel | THB 0.498 per litre |
| Diesel | THB 0.548 per litre, down to 0.431 for blends with 19–24% biodiesel |
| LPG | THB 0.623 per kg |
| Fuel oil | THB 0.618 per litre |
| National targets cited | NDC 30–40% below BAU by 2030; carbon neutrality 2050; net zero 2065 |
| Draft Climate Change Act | 205 sections; ETS, CBAM, carbon tax and carbon credits |
| Draft ETS design (2024 consultation draft) | Cap in line with national targets; free allocation and/or auction; fine up to 3× the average auction price for excess emissions |

## T-VER at a glance

| Item | Status |
|---|---|
| Programme | Thailand Voluntary Emission Reduction Program (T-VER), run by TGO |
| Projects registered | 654 Standard T-VER projects, fiscal 2014–2026 |
| Credits issued | 28,247,683 tCO2e in 456 issuances, fiscal 2014–2026 |
| Expected reductions, registered projects | 17,174,981 tCO2e a year |
| Premium T-VER | 9 projects registered (fiscal 2024–2026); first 60 tCO2e issued in fiscal 2026 |
| Traded since fiscal 2016 | 4,904,654 tCO2e worth THB 423,371,187 (to April 2026) |
| Average traded price | About THB 86 per tCO2e; forestry and agriculture THB 411.21, renewables THB 39.95 |
| Exchange trading | 13,665 tCO2e on the FTIX exchange vs 4,083,549 tCO2e bilateral |
| Use in a future ETS (2024 draft) | Banking or offsetting up to 15% of allowances to be surrendered |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Carbon price used in fuel excise | THB 200 per tCO2e | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Excise notification issued (signed by Director-General) | 28 March 2025 | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Notification published in the Royal Gazette | 22 April 2025 (Vol. 142, Special Part 171 D, page 7) | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Entry into force rule (clause 3) | From the day after the date of issue, i.e. 29 March 2025 (issued 28 March 2025, f02) | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Legal basis: tariff schedule amended by Ministerial Regulation No. 41 | Ministerial Regulation prescribing excise tariff rates (No. 41) B.E. 2568 (2025) | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| How the per-unit carbon component is set | Carbon price (THB 200/tCO2e) multiplied in proportion to each product's emission factor per unit | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Unleaded gasoline | THB 0.447 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Gasohol E10 | THB 0.403 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Gasohol E20 | THB 0.358 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Gasohol E85 | THB 0.069 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Kerosene | THB 0.498 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Jet fuel (other than heading (1)) | THB 0.498 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel, sulphur ≤0.001% (no biodiesel) | THB 0.548 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel ≤4% | THB 0.537 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel >4% to 7% | THB 0.518 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel >7% to 9% | THB 0.504 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel >9% to 14% | THB 0.485 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel >14% to 19% | THB 0.458 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Diesel with biodiesel >19% to 24% | THB 0.431 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: LPG | THB 0.623 per kg | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Carbon component per unit: Fuel oil | THB 0.618 per litre | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Implied emission factor, unleaded gasoline | about 2.24 kgCO2e per litre (= 0.447 / 200 × 1,000; facts f07, f01) | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Implied emission factor, diesel | about 2.74 kgCO2e per litre (= 0.548 / 200 × 1,000; facts f13, f01) | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| NDC target cited in the notification | 30-40% below business-as-usual by 2030 | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Long-term targets cited in the notification | Carbon neutrality by 2050; net-zero GHG by 2065 | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Cabinet resolution on CBAM preparedness plan cited as background | 11 December 2024 | [Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance](https://ratchakitcha.soc.go.th/documents/66732.pdf) | 2026-11-12 |
| Excise Department FY2025 report: carbon price and legal form | Ministerial regulation plus Excise notification setting THB 200 per tonne of carbon | [Excise Department, Ministry of Finance](https://webdev.excise.go.th/act2560/files/secretary/Press6-2568.pdf) | 2026-11-12 |
| Retailers showing per-fill carbon emissions with the Excise Department | 2 companies (PTT OR and Bangchak) | [Excise Department, Ministry of Finance](https://webdev.excise.go.th/act2560/files/secretary/Press6-2568.pdf) | 2026-11-12 |
| First phase design: convert existing fuel excise into carbon-tax form | Existing oil excise re-expressed as carbon tax, no extra burden on the public (announced 30 Sep 2024) | [Excise Department, Ministry of Finance](https://webdev.excise.go.th/act2560/files/secretary/press35-2567.pdf) | 2026-11-12 |
| Effect on current excise burden | Adding the mechanism does not change the current excise tax burden (stated 2024) | [Excise Department, Ministry of Finance](https://webdev.excise.go.th/act2560/files/secretary/press39-2567.pdf) | 2026-11-12 |
| Social cost of carbon range in Excise Department study note | THB 192-3,133 per tonne of carbon; average THB 483 | [Excise Department, Ministry of Finance](https://www.excise.go.th/cs/groups/public/documents/document/mjaw/mdyx/~edisp/webportal16200061848.pdf) | 2026-11-12 |
| MOU on digital oil-volume data link to support a carbon tax | Signed 20 Feb 2026 with 18 companies (13 oil companies, 4 transporters, 1 aviation refueller) | [Excise Department, Ministry of Finance](https://webdev.excise.go.th/act2560/files/secretary/Press4-2569.pdf) | 2026-11-12 |
| Cabinet approves draft Climate Change Act in principle | 2 December 2025 | [Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment](https://www.dcce.go.th/14324/) | 2026-11-12 |
| Size of the cabinet-approved draft Act | 14 chapters, 205 sections | [Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment](https://www.dcce.go.th/14324/) | 2026-11-12 |
| Carbon pricing instruments in the draft Act | ETS (allowance allocation), CBAM, carbon tax and carbon credits | [Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment](https://www.dcce.go.th/14324/) | 2026-11-12 |
| Council of State first-round review of the draft Act begins | 5 May 2026 (Council of State Committee 7) | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/22044) | 2026-11-12 |
| ETS chapter in the 2024 consultation draft | Chapter 8, sections 72-99: cap set in line with national targets; allowances allocated free and/or by auction | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) | 2026-11-12 |
| Banking/offsetting limit in the 2024 consultation draft ETS | Up to 15% of allowances to be surrendered | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) | 2026-11-12 |
| Penalty for excess emissions in the 2024 consultation draft | Administrative fine up to 3 times the average auction price of allowances | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) | 2026-11-12 |
| Carbon tax chapter in the 2024 consultation draft | Chapter 10, sections 118-147; rates set by ministerial regulation up to a ceiling in the Act's schedule | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) | 2026-11-12 |
| Size of the 2024 consultation draft | 202 sections in 14 chapters | [Department of Climate Change and Environment (DCCE)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) | 2026-11-12 |
| T-VER programme | Thailand Voluntary Emission Reduction Program run by TGO; credits from registered projects may be traded in the voluntary market | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/en/about-us/en-overview) | 2026-11-12 |
| Standard T-VER projects registered per fiscal year, FY2014-FY2026 (single and bundled) | 9, 11, 19, 41, 50, 50, 45, 32, 53, 54, 96, 93, 101 | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Standard T-VER projects registered, FY2014-FY2026 total (single and bundled) | 654 projects (sum of f43) | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Standard T-VER projects registered in FY2026 (Oct 2025-Sep 2026) | 101 projects, the highest of any fiscal year | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Forestry and agriculture share of FY2026 registrations | 75 of 101 projects | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Expected annual reductions of projects registered in FY2026 | 1,660,056 tCO2e | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Expected reductions of projects registered per fiscal year, FY2014-FY2026 | 114,237 … 1,660,056 tCO2e (13 years) | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| Standard T-VER credits issued per fiscal year, FY2015-FY2026 | 339,537 … 4,355,196 tCO2e (12 years) | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/1/1) | 2026-11-12 |
| Standard T-VER credits issued, cumulative FY2014-FY2026 | 28,247,683 tCO2e | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/1/1) | 2026-11-12 |
| Issuance events (project-issuances) counted FY2014-FY2026 | 456 | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/1/1) | 2026-11-12 |
| Standard T-VER credits issued in FY2026 | 4,355,196 tCO2e from 57 project issuances | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/1/1) | 2026-11-12 |
| Standard T-VER credits issued in FY2022 (previous peak) | 4,673,841 tCO2e | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/1/1) | 2026-11-12 |
| Premium T-VER projects registered, FY2024-FY2026 | 4, 3 and 2 projects (9 in total) | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/2/1) | 2026-11-12 |
| Premium T-VER credits issued in FY2026 (first issuance) | 60 tCO2e | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/credit/2/1) | 2026-11-12 |
| Expected reductions of all registered Standard T-VER projects | 17,174,981 tCO2e per year | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/) | 2026-11-12 |
| Expected reductions of registered Premium T-VER projects | 26,051 tCO2e per year | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/) | 2026-11-12 |
| First T-VER project registrations in the TGO statistics | Fiscal year 2014 (9 projects) | [Thailand Greenhouse Gas Management Organization (TGO)](https://tver.tgo.or.th/database/summary/registration/1/1) | 2026-11-12 |
| T-VER credits traded, accumulated since FY2016 (data to April 2026) | 4,904,654 tCO2e across 8 project types | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Value of T-VER credits traded, accumulated since FY2016 (data to April 2026) | THB 423,371,187 | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Average traded T-VER price, all types (accumulated since FY2016) | about THB 86.3 per tCO2e (= f60 / f59) | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Weighted average traded price, forestry and agriculture credits | THB 411.21 per tCO2e (range THB 55-3,000) | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Weighted average traded price, renewable energy credits | THB 39.95 per tCO2e (range THB 18-500) | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Renewable energy share of traded T-VER volume | 3,414,902 of 4,904,654 tCO2e (about 70%) | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Weighted average traded price, industrial wastewater credits | THB 123.99 per tCO2e | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Weighted average traded price, solid waste credits | THB 172.68 per tCO2e | [TGO Open Data](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) | 2026-11-12 |
| Weighted average traded price, sustainable afforestation methodology | THB 1,885.47 per tCO2e (4,957 t traded) | [TGO Open Data](https://opendata.tgo.or.th/dataset/a21f432c-cbac-4473-a3b1-46cc8b5183fd/resource/7430b1cb-b7a8-4e2d-8aaf-60ea9cf50e7c/download/cc_02_01.csv) | 2026-11-12 |
| Weighted average traded price, project-level REDD+ methodology | THB 1,112.04 per tCO2e (47,993 t traded) | [TGO Open Data](https://opendata.tgo.or.th/dataset/a21f432c-cbac-4473-a3b1-46cc8b5183fd/resource/7430b1cb-b7a8-4e2d-8aaf-60ea9cf50e7c/download/cc_02_01.csv) | 2026-11-12 |
| T-VER volume traded on the FTIX exchange (period not stated on the page) | 13,665 tCO2e (sum of 5 project types), against 4,083,549 tCO2e bilateral (OTC) on the same page | [Thailand Greenhouse Gas Management Organization (TGO)](https://carbonmarket.tgo.or.th/modules/chart/classify.php) | 2026-11-12 |

## FAQ

**Does Thailand have a carbon tax?**

Yes, in a limited form. Since March 2025 the excise tax on fuels includes a carbon component priced at THB 200 per tCO2e. There is no carbon tax on facility emissions yet; that is in the draft Climate Change Act.

**How much is the carbon component per litre of fuel?**

THB 0.548 per litre of diesel, THB 0.447 for gasoline, THB 0.358 for gasohol E20, THB 0.498 for jet fuel and THB 0.623 per kg of LPG.

**Did the carbon price raise fuel prices?**

The Excise Department said the first phase re-expresses existing fuel excise as a carbon tax and does not add to the current excise burden.

**Does Thailand have an emissions trading scheme?**

Not yet. An ETS is part of the draft Climate Change Act (205 sections), approved in principle by the cabinet on 2 December 2025 and under Council of State review since 5 May 2026. No start date is set.

**How many T-VER credits are issued each year?**

4,355,196 tCO2e in fiscal 2026 (October 2025 to September 2026), close to the fiscal 2022 peak of 4,673,841 tCO2e. 28,247,683 tCO2e have been issued since fiscal 2014.

**What do T-VER credits sell for?**

About THB 86 per tCO2e on average across trades since fiscal 2016. Forestry and agriculture credits averaged THB 411.21 and renewable energy credits THB 39.95.

**How was the THB 200 level chosen?**

Official documents do not explain the level. An Excise Department study note puts the social cost of carbon at THB 192–3,133 per tonne, averaging THB 483, so THB 200 sits near the bottom of that range.

## Not listed yet

- Full text and date of Ministerial Regulation No. 41 (2025): the Royal Gazette search is behind a bot check.
- Revenue raised by the carbon component: not published separately from oil excise.
- The temporary B20/E20 excise cut from 28 October 2026: no official document could be opened.
- Year-by-year T-VER trading volumes and prices: TGO publishes only cumulative totals.
- ETS start date, sectors and thresholds: not set while the Act is in draft.
- Ministerial Regulation No. 41 B.E. 2568 (full text and date) — Cited in the Excise notification; the Royal Gazette search page is behind a bot challenge (not bypassed) and the Excise ministerial-regulation list online stops at 2022.
- Revenue raised by the carbon component — No official figure found; the Excise Department reports oil excise revenue only in total.
- Temporary excise cut on B20 and E20 from 28 Oct 2026 — Reported in the press as keeping the carbon component; no Excise Department or Royal Gazette document could be opened (thaigov.go.th and ratchakitcha search blocked by bot checks).
- Annual T-VER traded volumes and prices by year — TGO open data gives only cumulative totals since FY2016 (last updated April 2026); the TGO trading chart page gives no period.
- ETS start date, covered sectors and thresholds — The draft Climate Change Act is still under Council of State review; no official date or coverage has been set.
- Cabinet-approved (205-section) draft text — Only the 2024 consultation draft summary (202 sections) is published; ETS details are taken from that draft and may change.


---

# Vietnam: a 268 million tonne pilot cap for 2026, across 110 power, steel and cement facilities

_Last checked 2026-11-12 · https://asiacarbondesk.com/vietnam-carbon-market-pilot/_

Vietnam caps emissions from 110 power, steel and cement facilities in a pilot that runs to the end of 2028. Allowances are free, and up to 30% may be covered with carbon credits. A domestic carbon exchange on the Hanoi Stock Exchange opened on 29 June 2026; in the pilot, trades are negotiated between the parties.

## Key facts

- Pilot cap 2026: 268.4 Mt (tCO2e · 2025 cap 243.1 Mt (+10.4%))
- Covered facilities: 110 (34 thermal power, 25 steel, 51 cement)
- 2025 and 2026 caps combined: 511.5 Mt (Decision 263/QD-TTg · our sum of the two caps)
- Enterprises in the pilot: 92 (own the 110 facilities · 6 member securities firms at launch)
- Offset limit: 30% (of allocated allowances · borrowing up to 15%)
- Pilot ends: 2028 (official market and auctions from 2029)

## In brief

- The Prime Minister set pilot caps of 243,082,392 tCO2e for 2025 and 268,391,454 tCO2e for 2026, for 34 thermal power plants, 25 steel and 51 cement facilities.
- Allowances are allocated free in the pilot, which runs from 2025 to the end of 2028; the official market, with an auction mechanism, starts in 2029.
- Facilities may cover up to 30% of their allocated allowances with eligible carbon credits, borrow up to 15% from the next period, and must surrender by 31 December of the year after each two-year period.
- The 2025 and 2026 caps in Decision 263/QD-TTg add up to 511,473,846 tCO2e. VN2025 allowances can trade on the Hanoi Stock Exchange from 29 June 2026 to 24 December 2027; in the pilot, trades are negotiated and exchange fees are waived to the end of 2028.

## Pilot emissions cap by year (tCO2e)

| Period | tCO2e |
|---|---|
| 2025 | 243,082,392 |
| 2026 | 268,391,454 |

## Facilities that must report a greenhouse gas inventory, by list year

| Period | facilities |
|---|---|
| 2022 | 1,912 |
| 2024 | 2,166 |
| 2026 | 2,441 |

## Facilities receiving 2025–2026 allowances, by sector

| Period | facilities |
|---|---|
| Thermal power | 34 |
| Iron and steel | 25 |
| Cement | 51 |

## From the 2013 JCM to the 2029 official market

| Date | Event |
|---|---|
| 2013-07-02 | Viet Nam and Japan sign the JCM bilateral document. |
| 2022-01-07 | Decree 06/2022/ND-CP sets the framework for GHG mitigation and the carbon market. |
| 2025-01-24 | Decision 232/QD-TTg approves the carbon market scheme: pilot to 2028, official from 2029. |
| 2025-08-01 | Decree 119/2025/ND-CP takes effect: allocation method, 30% offset limit, 15% borrowing. |
| 2026-01-19 | Decree 29/2026/ND-CP on the domestic carbon exchange is issued and takes effect. |
| 2026-02-09 | Decision 263/QD-TTg sets pilot caps for 2025 and 2026. |
| 2026-02-13 | Circular 11/2026/TT-BNNMT sets rules for the national registry of allowances and credits. |
| 2026-06-29 | The domestic carbon exchange opens on HNX with 6 member securities companies; VN2025 allowances become tradable. |
| 2026-12-12 | Decree 396/2026/ND-CP, a further amendment of Decree 06/2022, takes effect. |
| 2027-10-31 | Deadline to allocate allowances for 2027–2028. |
| 2027-12-24 | Last trading day for VN2025 allowances. |
| 2027-12-31 | Surrender deadline for 2025–2026 emissions. |
| 2029 | Official market phase; an auction mechanism is to be built and exchange fees start. |

## How a pilot facility complies

| Step | What happens |
|---|---|
| Allocation | Free allowances set as 3-year average output × sector-average emissions per unit × an adjustment factor. |
| Trade | Buy or sell allowances (1 allowance = 1 tCO2e) on the HNX carbon exchange through a member securities company; in the pilot, trades are negotiated and settled immediately. |
| Offset and borrow | Cover up to 30% of allocated allowances with credits; borrow up to 15% from the next period. |
| Verify | Third-party-verified inventory results go to the Ministry by 1 December, from 2027. |
| Surrender | By 31 December of the year after the period; a shortfall is fined and deducted from the next allocation. |

## Who is covered

| Item | Rule |
|---|---|
| Sectors | Thermal power (coal, oil, gas), crude steel, clinker (cement) |
| Facilities | 110: 34 thermal power plants, 25 steel and 51 cement facilities |
| Enterprises | 92 enterprises own the 110 facilities |
| Share of emissions | About 40% of total emissions from facilities that must report an inventory |
| Caps | 243,082,392 tCO2e (2025); 268,391,454 tCO2e (2026) |
| Allocation | Free in the pilot; output-based benchmark A = P × B × T |
| Adjustment factor | T = (1 + g) × (1 − r): sector growth and reduction targets |
| Reporting list | 2,441 facilities must report an inventory under the 2026 list |

## Carbon credits at a glance

| Item | Status |
|---|---|
| Offset limit | Up to 30% of a facility's allocated allowances |
| Vintage | Reductions from 1 January 2021 onward |
| Eligible mechanisms | Domestic mechanism; bilateral Article 6.2 deals; Article 6.4; the 2025 scheme also names CDM and JCM |
| JCM with Japan | Signed 2 July 2013; 20 projects listed, 14 registered |
| JCM credits notified | 35,313 from 13 Viet Nam projects |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Pilot emissions cap, 2025 | 243,082,392 tCO2e | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Pilot emissions cap, 2026 | 268,391,454 tCO2e | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Change in pilot cap, 2026 vs 2025 | +25,309,062 tCO2e (+10.4%); calc = f02 - f01, divided by f01 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Facilities receiving pilot allowances (total) | 110 facilities (34 + 25 + 51) | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Thermal power plants in the pilot | 34 plants | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Iron and steel facilities in the pilot | 25 facilities | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Cement facilities in the pilot | 51 facilities | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |
| Decision 263/QD-TTg approving 2025-2026 pilot caps | Issued 9 Feb 2026 | [Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn)](https://vanban.chinhphu.vn/?docid=216923&pageid=27160) | 2026-11-12 |
| Decision 232/QD-TTg: carbon market scheme approved | Signed 24 Jan 2025 | [Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn)](https://vanban.chinhphu.vn/?pageid=27160&docid=212592) | 2026-11-12 |
| Pilot phase of the carbon market | 2025 to end-2028 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/phe-duyet-de-an-thanh-lap-va-phat-trien-thi-truong-cac-bon-tai-viet-nam-102250124174729484.htm) | 2026-11-12 |
| Official operation of the carbon market | From 2029 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/phe-duyet-de-an-thanh-lap-va-phat-trien-thi-truong-cac-bon-tai-viet-nam-102250124174729484.htm) | 2026-11-12 |
| Credit types eligible for exchange trading under the 2025 scheme | 4 sources: domestic mechanism, CDM, JCM, Paris Agreement Article 6 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/phe-duyet-de-an-thanh-lap-va-phat-trien-thi-truong-cac-bon-tai-viet-nam-102250124174729484.htm) | 2026-11-12 |
| Decree 29/2026/ND-CP on the domestic carbon exchange | Issued and effective 19 Jan 2026 | [Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn)](https://vanban.chinhphu.vn/?pageid=27160&docid=216694) | 2026-11-12 |
| Size of Decree 29/2026/ND-CP | 6 chapters, 35 articles | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/quy-dinh-ve-san-giao-dich-cac-bon-trong-nuoc-102260120103338524.htm) | 2026-11-12 |
| Exchange service fees during the pilot | None charged to 31 Dec 2028; fees charged from 1 Jan 2029 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/quy-dinh-ve-san-giao-dich-cac-bon-trong-nuoc-102260120103338524.htm) | 2026-11-12 |
| Decree 119/2025/ND-CP (amends Decree 06/2022) | Issued 9 Jun 2025; effective 1 Aug 2025 | [Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn)](https://vanban.chinhphu.vn/?pageid=27160&docid=213875) | 2026-11-12 |
| Unit of one allowance | 1 allowance = right to emit 1 tCO2 or 1 tCO2e | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Vintage rule for tradable credits | Credits for reductions from 1 Jan 2021 onward | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Offset limit | Credits may cover up to 30% of a facility's allocated allowances | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Borrowing from the next period | Up to 15% of the period's allocation, until 2030; borrowed allowances cannot be traded | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Banking of unused allowances | Allowed to the next period until end-2030; banked allowances can be traded | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Surrender deadline | By 31 December of the year after the allocation period (for 2025-2026: by 31 Dec 2027) | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Surrender amount | At least verified direct emissions for the period minus credits used as offsets | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Penalty for a surrender shortfall | Administrative fine under environmental-protection law, plus the shortfall is deducted from the next period's allocation | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Cancellation of unbanked allowances | 30 days after the surrender deadline, earlier-period allowances neither surrendered nor banked are cancelled | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Allowance auctions | Auction mechanism to be built and run in the phase from 2029 | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Allocation formula (Method 01) | A = P x B x T: 3-year average output x sector-average emissions per unit x adjustment factor | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Adjustment factor in the allocation formula | T = (1 + g) x (1 - r): sector growth target g and emission-reduction target r | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Product units used for benchmarks | kWh for thermal power (coal, oil, gas); tonne of crude steel; tonne of clinker | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Allocation deadlines for later periods | By 31 Oct 2027 for 2027-2028; by 31 Oct 2029 for 2029-2030 | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Ministries' proposals for the 2027-2028 period | Due to the Ministry of Agriculture and Environment by 30 Jun 2027 | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Verified inventory reports from allocated facilities | Third-party-verified results due to the Ministry by 1 December, from 2027 | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Share of inventory-facility emissions in the first phase | More than 100 facilities, about 40% of total emissions of facilities required to report | [Ministry of Agriculture and Environment (mae.gov.vn)](https://mae.gov.vn/chinh-phu-ban-hanh-nghi-dinh-sua-doi-bo-sung-nghi-dinh-so-062022ndcp-quy-dinh-giam-nhe-phat-thai-khi-nha-kinh-va-bao-ve-tang-odon-18591.htm) | 2026-11-12 |
| Allocation method in the pilot | Allowances allocated free of charge (pilot to 2028) | [Ministry of Agriculture and Environment (mae.gov.vn)](https://mae.gov.vn/thi-iem-thi-truong-cacbon-doanh-nghiep-uoc-phan-bo-han-ngach-mien-phi-20693.htm) | 2026-11-12 |
| Carbon exchange launch | Began operation on 29 Jun 2026 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/san-giao-dich-cac-bon-viet-nam-van-hanh-doanh-nghiep-them-cong-cu-giam-phat-thai-102260629140706568.htm) | 2026-11-12 |
| Trading members at launch | 6 securities companies | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/san-giao-dich-cac-bon-viet-nam-van-hanh-doanh-nghiep-them-cong-cu-giam-phat-thai-102260629140706568.htm) | 2026-11-12 |
| National registry rules | Circular 11/2026/TT-BNNMT of 13 Feb 2026 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/viet-nam-chuan-bi-van-hanh-san-giao-dich-cac-bon-dau-tien-102260626174322565.htm) | 2026-11-12 |
| Market-wide system testing | Internal and market-wide tests in May and June 2026 | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/viet-nam-chuan-bi-van-hanh-san-giao-dich-cac-bon-dau-tien-102260626174322565.htm) | 2026-11-12 |
| Credit groups allowed to trade (Ministry of Finance Legal Department representative, Apr 2026) | 3 groups: domestic credits, credits under international mechanisms, Paris Agreement credits | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/thi-truong-cac-bon-vao-giai-doan-trien-khai-doanh-nghiep-doi-mat-yeu-cau-moi-102260417114409008.htm) | 2026-11-12 |
| VN2025 trading window | First trading day 29 Jun 2026; last trading day 24 Dec 2027 | [Hanoi Stock Exchange (HNX)](https://www.hnx.vn/vi-vn/cacbon/tin-cong-bo-tu-so.html) | 2026-11-12 |
| Facilities required to report GHG inventory, 2022 list | 1,912 facilities (1,662 + 70 + 104 + 76) under Decision 01/2022/QD-TTg | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/ban-hanh-danh-muc-linh-vuc-co-so-phai-thuc-hien-kiem-ke-khi-nha-kinh-102220121175127973.htm) | 2026-11-12 |
| Facilities required to report GHG inventory, 2024 list | 2,166 facilities under Decision 13/2024/QD-TTg (effective 1 Oct 2024) | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/2166-co-so-phat-thai-khi-nha-kinh-phai-thuc-hien-kiem-ke-khi-nha-kinh-102240816120445962.htm) | 2026-11-12 |
| Facilities required to report GHG inventory, 2026 list | 2,441 facilities under Decision 42/2026/QD-TTg (effective 25 Sep 2026) | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/2441-co-so-phat-thai-khi-nha-kinh-phai-thuc-hien-kiem-ke-khi-nha-kinh-102260811160731774.htm) | 2026-11-12 |
| Decree 396/2026/ND-CP (further amends Decree 06/2022) | Issued 26 Oct 2026; effective 12 Dec 2026 | [Government of Viet Nam (datafiles.chinhphu.vn)](https://datafiles.chinhphu.vn/cpp/files/vbpq/2026/10/396_2026_nd-cp_26102026_3-signed.signed.pdf) | 2026-11-12 |
| Draft fine: excess emissions of 5,000 tCO2e or more (proposal, Jun 2026) | VND 300-400 million (draft decree, not adopted) | [Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn)](https://xaydungchinhsach.chinhphu.vn/de-xuat-tang-che-tai-xu-ly-cac-hanh-vi-gay-o-nhiem-moi-truong-119260609095000927.htm) | 2026-11-12 |
| Draft fine: excess emissions of 3,000 to under 5,000 tCO2e (proposal) | VND 100-300 million (draft decree, not adopted) | [Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn)](https://xaydungchinhsach.chinhphu.vn/de-xuat-tang-che-tai-xu-ly-cac-hanh-vi-gay-o-nhiem-moi-truong-119260609095000927.htm) | 2026-11-12 |
| Draft fine: excess emissions of 1,000 to under 3,000 tCO2e (proposal) | VND 20-75 million (draft decree, not adopted) | [Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn)](https://xaydungchinhsach.chinhphu.vn/de-xuat-tang-che-tai-xu-ly-cac-hanh-vi-gay-o-nhiem-moi-truong-119260609095000927.htm) | 2026-11-12 |
| Japan-Viet Nam Joint Crediting Mechanism (JCM) | Bilateral document signed 2 Jul 2013 | [Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp)](https://www.jcm.go.jp/jc/vn-about) | 2026-11-12 |
| JCM projects in Viet Nam | 20 listed (VN001-VN020): 14 registered, 6 in validation | [Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp)](https://www.jcm.go.jp/jc/vn-projects) | 2026-11-12 |
| JCM credits notified for issuance, Viet Nam projects | 35,313 credits from 13 projects (both countries' shares) | [Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp)](https://www.jcm.go.jp/jc/vn-projects-issues) | 2026-11-12 |
| Latest JCM Joint Committee | 10th Joint Committee, 16 Oct 2026 (Hanoi and online) | [Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp)](https://www.jcm.go.jp/jc/vn) | 2026-11-12 |
| Japan-Viet Nam Memorandum of Cooperation | Signed 2 May 2026 | [Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp)](https://www.jcm.go.jp/jc/vn) | 2026-11-12 |
| Decree 06/2022/ND-CP (base GHG mitigation decree) | Dated 7 Jan 2022 | [Official Gazette of Viet Nam (congbao.chinhphu.vn)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) | 2026-11-12 |
| Enterprises receiving pilot allowances | 92 enterprises owning the 110 facilities | [Ministry of Agriculture and Environment (mae.gov.vn)](https://mae.gov.vn/chinh-thuc-van-hanh-san-giao-dich-carbon-doanh-nghiep-mua-ban-gi-22188.htm) | 2026-11-12 |
| Trading method in the pilot | Negotiated (bilateral) trades only, to the end of 2028; the exchange confirms, records ownership and settles | [Ministry of Agriculture and Environment (mae.gov.vn)](https://mae.gov.vn/chinh-thuc-van-hanh-san-giao-dich-carbon-quy-trinh-cua-mot-giao-dich-22210.htm) | 2026-11-12 |
| Settlement and accounts | Immediate settlement (buyer must hold cash, seller the allowances, before matching); one carbon trading account per organisation | [Ministry of Agriculture and Environment (mae.gov.vn)](https://mae.gov.vn/chinh-thuc-van-hanh-san-giao-dich-carbon-quy-trinh-cua-mot-giao-dich-22210.htm) | 2026-11-12 |
| Pilot caps for 2025 and 2026 combined (calc.) | 511,473,846 tCO2e (243,082,392 + 268,391,454) | [Government Electronic Newspaper of Viet Nam (baochinhphu.vn)](https://baochinhphu.vn/tong-han-ngach-phat-thai-khi-nha-kinh-thi-diem-cho-nam-2026-la-hon-268-trieu-tan-co2td-102260209165041794.htm) | 2026-11-12 |

## FAQ

**How big is Vietnam's pilot emissions cap?**

243,082,392 tCO2e for 2025 and 268,391,454 tCO2e for 2026, set by Decision 263/QD-TTg of 9 February 2026. Together they add up to 511,473,846 tCO2e (our sum).

**Which companies are covered?**

110 facilities: 34 thermal power plants, 25 iron and steel facilities and 51 cement facilities. The Ministry says the first phase covers about 40% of emissions from facilities that must report an inventory.

**How does trading on the carbon exchange work?**

The Hanoi Stock Exchange runs the domestic carbon exchange, which opened on 29 June 2026 with 6 member securities companies. Each organisation trades through one carbon trading account at a member. During the pilot, to the end of 2028, only negotiated trades are used: the parties agree price and volume, and the exchange confirms and settles the trade immediately.

**How large are the caps, and until when can VN2025 allowances trade?**

The 2025 and 2026 caps in Decision 263/QD-TTg add up to 511,473,846 tCO2e (our sum). VN2025 allowances can trade from 29 June 2026 to 24 December 2027. No exchange service fees are charged until 31 December 2028.

**Can companies use carbon credits?**

Yes. Credits may cover up to 30% of a facility's allocated allowances, for reductions from 1 January 2021 onward.

**Are allowances auctioned?**

No. They are free during the pilot, which runs to the end of 2028. Decree 119/2025 provides for an auction mechanism in the phase from 2029.

**What happens if a facility does not surrender enough?**

It is fined under the environmental sanctions law, and the shortfall is deducted from its next allocation. Surrender for 2025–2026 is due by 31 December 2027. A June 2026 draft proposes fines of up to VND 400 million.

**Does the JCM with Japan feed into the market?**

The 2025 scheme lists JCM credits among those that can trade. The JCM has 20 projects in Viet Nam, 14 registered, with 35,313 credits notified for issuance.

## Not listed yet

- Allowances allocated to each facility, and 2025 verified emissions: the official texts we could open do not publish them.
- The fine actually in force for a surrender shortfall: only a June 2026 draft gives amounts.
- Exchange price band, lot size and trading hours: HNX trading rules not checked.
- Prices and traded volumes of VN2025 allowances: not shown; no government body publishes them in the sources we checked.
- Contents of Decrees 83/2026 and 112/2026, and the Ministry's consolidated text: not opened.
- The emissions threshold for the inventory list: not found in the texts opened.
- Facility-level allocations and the 2025 actual emissions — Decision 263 signed PDF is a scanned image (no text layer) and the per-facility allocation decision was not found in official text form.
- Penalty amount actually in force for surrender shortfalls — Decree 119 only refers to the environmental sanctions decree; the June 2026 fine bands are a draft. The adopted sanctions decree text was not found.
- Consolidated text 40/VBHN-BNNMT and Decrees 83/2026 and 112/2026 — mae.gov.vn PDF could not be downloaded (server certificate chain not verifiable from this environment); content not read.
- HNX notice 971/BDKH-TTCB attachment (Department of Climate Change letter) — owa.hnx.vn PDF not downloadable (certificate chain); only the HNX notice text was read.
- Price band, lot size and trading hours on the carbon exchange — HNX/VNX trading rules not opened.
- JCM credits held or traded on the Vietnamese exchange — HNX credit list is empty; no official figure for JCM credits used domestically.
- Facility threshold for inventory (commonly cited 3,000 tCO2e/yr) — Not found in the official texts opened.


---

# Taiwan drafts rules to recognise foreign credits from 2021 or later for up to 5% of carbon fee emissions

_Published 2026-11-14 · Event 2026-11-12 · Policy and institutions · Taiwan · https://asiacarbondesk.com/news/20261114-tw-foreign-credit-recognition-draft/_

On 12 November 2026, Taiwan's Ministry of Environment (MOENV) pre-announced draft rules for recognising foreign emission reduction credits.
Only credits generated in 2021 or later, with host-country authorisation and a corresponding adjustment under Article 6 of the Paris Agreement, would qualify.
Existing carbon fee rules already cap foreign credit use at 5% of chargeable emissions and exclude high carbon-leakage firms.

## What happened

On 12 November 2026, MOENV and its Climate Change Administration published a draft of the Foreign Emission Reduction Credit Recognition Rules. Article 27 of the Climate Change Response Act requires foreign credits used against the domestic carbon fee or a future cap-and-trade obligation to meet recognition rules set by MOENV. The draft sets out the application procedure and disclosure duties. Only 3 groups may apply: carbon fee payers, entities under cap-and-trade, and bodies designated by the central financial authority.
On eligibility, the draft follows Article 6 of the Paris Agreement. Credits must have been generated in 2021 or later, be consistent with the host country's nationally determined contribution (NDC), and be reflected in its national greenhouse gas inventory or transparency report. The host Party must authorise the credits and complete a corresponding adjustment, so that the same reduction is not also counted by the host. 3 project types are excluded: nuclear power, controversial logging and forestry projects, and measures that prolong fossil fuel use. MOENV says it plans to publish a positive list of eligible project types or methodologies at a later stage.
Recognised credits could be used only for legal obligations, namely carbon fee deduction or cap-and-trade offsets. They could not be used for corporate ESG claims or product carbon-neutral claims. The project source, project type, recognised quantity and cancellation of every recognised credit would be published on a government platform. MOENV cited Switzerland, Japan and Singapore as countries that already allow regulated firms to use foreign credits within an Article 6 framework. Comments may be filed within 30 days from the day after the draft is published in the Executive Yuan Gazette, or at a public hearing.

## Background

The carbon fee rests on the Climate Change Response Act, amended on 15 February 2023, which also sets a goal of net-zero emissions by 2050. The general rate of NT$300 per tCO2e was announced on 21 October 2024 and took effect on 1 January 2025. The fee applies to plants in power, gas supply and manufacturing whose emissions reach 25,000 tCO2e a year. In the first payment round, 461 plants at 240 companies had paid by May 2026.
The Regulations Governing the Collection of Carbon Fees already provide two offset routes. Domestic credits may be deducted up to 10% of chargeable emissions, and credits from voluntary or offset projects deduct at a ratio of 1.2. Foreign credits recognised by MOENV may cover up to 5% of chargeable emissions, but not for high carbon-leakage firms. Until now, the rules for how a foreign credit is recognised had not been issued, so the 5% route had no working procedure. The new draft fills that gap. Over the longer term, the Act points to a cap-based emissions trading system, which is why the draft also covers cap-and-trade entities.

## Limits on credit use in five Asian compliance schemes

| Scheme | Credit use limit | Eligible credits (as stated in official sources) |
|---|---|---|
| Taiwan carbon fee | Foreign credits up to 5% of chargeable emissions; domestic credits up to 10% | Foreign credits recognised by MOENV; draft requires 2021 or later vintage |
| Singapore carbon tax | Up to 5% of taxable emissions, from 1 January 2024 | International carbon credits meeting Article 6 rules plus seven principles |
| Japan GX-ETS | 10% of each year's emissions | J-Credits and JCM credits |
| Korea K-ETS | Up to 10% of the surrender obligation; exact limit set in the allocation plan | Offset credits (KOC/KCU) |
| Viet Nam carbon market | Up to 30% of a facility's allocated allowances | 4 sources: domestic mechanism, CDM, JCM, Paris Agreement Article 6 |

Limits are legal ceilings as stated in each source; bases differ (chargeable emissions, taxable emissions, actual emissions, surrender obligation, allocated allowances) and are not directly comparable. Taiwan's vintage condition is in the 12 November 2026 draft and is not yet in force.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [接軌《巴黎協定》，環境部預告訂定「國外減量額度認可準則」草案 (12 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14489) (Ministry of Environment (MOENV), Climate Change Administration, checked 2026-11-14)
- [碳費收費辦法 (Regulations Governing the Collection of Carbon Fees), amended 1 September 2026](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-14)
- [氣候變遷因應法 (Climate Change Response Act), amended 15 February 2023](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-14)
- [碳費專區 (Carbon Fee section)](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) (Climate Change Administration (CCA), Ministry of Environment, checked 2026-11-14)
- [115年第1次碳費費率審議會 簡報資料 (1st meeting 2026, slides, 12 Feb 2026)](https://service.cca.gov.tw/File/Get/cca/zh-tw/FOrBZyYmV2dR0At) (Climate Change Administration (CCA), Ministry of Environment, checked 2026-11-14)
- [環境部修正發布「碳費收費辦法」第3條之1、第9條… (1 Sep 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14034) (Ministry of Environment (MOENV), checked 2026-11-14)
- [Carbon Tax](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency (NEA), checked 2026-11-14)
- [Carbon Tax (Mitigation Efforts)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) (National Climate Change Secretariat (NCCS), checked 2026-11-14)
- [ETS Subcommittee Interim Report – Implementation Guidelines for Allowance Allocation (English)](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) (METI (Industrial Structure Council), checked 2026-11-14)
- [排出量取引制度リーフレット（2026年度版）](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) (METI, checked 2026-11-14)
- [온실가스 배출권의 할당 및 거래에 관한 법률 시행령](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) (Korea Ministry of Government Legislation, National Law Information Center (law.go.kr), checked 2026-11-14)
- [Decree No. 119/2025/ND-CP amending Decree 06/2022/ND-CP (Official Gazette Nos. 769+770, 23 Jun 2025)](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) (Official Gazette of Viet Nam (congbao.chinhphu.vn), checked 2026-11-14)
- [Approval of the Scheme to establish and develop the carbon market in Viet Nam (Decision 232/QD-TTg)](https://baochinhphu.vn/phe-duyet-de-an-thanh-lap-va-phat-trien-thi-truong-cac-bon-tai-viet-nam-102250124174729484.htm) (Government Electronic Newspaper of Viet Nam (baochinhphu.vn), checked 2026-11-14)

Data book: https://asiacarbondesk.com/taiwan-carbon-fee/, https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/vietnam-carbon-market-pilot/


---

# Taiwan puts 2025 net emissions 8.7% below 2005 as it reports four straight years of decline

_Published 2026-11-14 · Event 2026-11-11 · Policy and institutions · Taiwan · https://asiacarbondesk.com/news/20261114-tw-net-emissions-decline-cop31/_

Taiwan's Ministry of Environment (MOENV) estimates that national net greenhouse gas emissions in 2025 were 8.7% below the 2005 base year.
In a release dated 11 November 2026, MOENV reports that net emissions have fallen every year since 2021, by more than 2% a year on average.
For the decade from 2015 to 2025, the ministry puts real GDP growth at 47.6% and the fall in emissions at 8.7%, and it restates NDC 3.0 targets of 28±2% by 2030 and 38±2% by 2035.

## What happened

On 11 November 2026, during the UN climate conference COP31 in Türkiye, MOENV's Climate Change Administration published a summary of Taiwan's emissions record, organised around four points. The first concerns the trend: by the ministry's estimate, national net emissions in 2025 were 8.7% lower than in 2005, after four consecutive years of decline beginning in 2021, with the average annual fall above 2%.
The second point is about growth and emissions. MOENV compared eight economies over the decade from 2015 to 2025 and put Taiwan's real GDP growth over that period at 47.6% and its emissions over the same period at 8.7% lower. This 2015-2025 figure is separate from the 2025-versus-2005 estimate in the first point, although both are given as 8.7%. On that basis the ministry describes Taiwan as having achieved absolute decoupling, meaning output grew while emissions fell in absolute terms rather than only per unit of GDP.
The third point covers policy instruments. The release notes that the carbon fee is now being collected, with revenue earmarked for mitigation and adaptation, and that the NDC 3.0 targets of a 28±2% cut by 2030 and a 38±2% cut by 2035 are being implemented through 20 flagship programmes across six sectors, monitored across ministries. The fourth point links Taiwan's position to the COP31 goals: electricity made up 34.8% of final energy use in Taiwan in 2025, and building energy efficiency and equipment standards are covered by the residential and commercial sector's actions.

## Background

The figures arrive in the first full year of carbon fee payments. The Climate Change Response Act, amended on 15 February 2023, set a goal of net-zero emissions by 2050 and created the fee. Plants emitting at least 25,000 tCO2e a year in power, gas supply and manufacturing pay NT$300 per tCO2e, or NT$50 to NT$100 with an approved voluntary reduction plan. Before launch, MOENV estimated that payers would cover about 155 MtCO2e, about 54% of national emissions.
The first payment round closed in May 2026, with 461 plants run by 240 companies paying for their 2025 emissions. Of those plants, 402 have approved voluntary reduction plans, which MOENV expects to deliver 45.2 MtCO2e of reductions by 2030. The second Carbon Fee Rate Review Committee met on 2 November 2026 to consider three options for the rate and reached no consensus, asking for more data. In August 2026 the UK listed the carbon fee as one of 16 qualifying carbon pricing schemes for its CBAM.

## Headline economy-wide emission targets: Taiwan and three other economies

| Economy | Target | Base year | Long-term goal |
|---|---|---|---|
| Taiwan (NDC 3.0) | −28±2% by 2030; −38±2% by 2035 | 2005 (2025 estimate: −8.7%) | Net zero by 2050 |
| South Korea (2035 NDC) | 53–61% below by 2035 | 2018 net emissions (742.3 Mt) | Not in cited fact |
| Hong Kong (Climate Action Plan 2050) | −50% before 2035 | 2005 | Not in cited fact |
| Australia | 43% below by 2030 | 2005 | Net zero by 2050 |

Targets are as published by each government; base years differ, so percentages are not directly comparable. Hong Kong's target refers to carbon emissions.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [臺灣減碳成績接軌COP31倡議 環境部提四大減碳成效 落實經濟成長與碳排絕對脫鉤 (11 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14481) (Ministry of Environment (MOENV), Climate Change Administration, checked 2026-11-14)
- [氣候變遷因應法 (Climate Change Response Act), amended 15 February 2023](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-14)
- [碳費收費辦法 (Regulations Governing the Collection of Carbon Fees)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-14)
- [碳費專區 (Carbon Fee section)](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) (Climate Change Administration (CCA), Ministry of Environment, checked 2026-11-14)
- [環境部修正發布「碳費收費辦法」 (1 Sep 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14034) (Ministry of Environment (MOENV), checked 2026-11-14)
- [環境部召開碳費費率審議會 費率是否調整須補充資料再審 (2 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) (Ministry of Environment (MOENV), checked 2026-11-14)
- [英國 CBAM 認可臺灣碳費制度 (31 Aug 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14025) (Ministry of Environment (MOENV), checked 2026-11-14)

Data book: https://asiacarbondesk.com/taiwan-carbon-fee/


---

# China adds 2 forestry CCER methodologies and revises 2 others between 10 October and 9 November 2026

_Published 2026-11-12 · Event 2026-11-09 · Credits and projects · China · https://asiacarbondesk.com/news/20261112-cn-ccer-forestry-methodologies/_

China's Ministry of Ecology and Environment and the National Forestry and Grassland Administration published 2 new CCER forestry methodologies on 9 November 2026.
They cover management of existing tree forests (CCER-13-001-V01) and reforestation (CCER-14-006-V01), and take effect on issue.
A month earlier, on 10 October, revised V02 versions of the afforestation and mangrove methodologies were posted, each effective 30 days after issue.

## What happened

On 9 November 2026 the MEE General Office and the General Office of the National Forestry and Grassland Administration (NFGA) posted a joint notice, dated 4 November and numbered Huanban Qihou Han [2026] No. 428, releasing two methodologies for China Certified Emission Reductions (CCER): tree forest management carbon sinks (CCER-13-001-V01) and reforestation carbon sinks (CCER-14-006-V01). The notice applies from the date of issue.
The notice sets ownership and permanence rules. Credits from these projects belong to the owner of the trees; if the project developer is a different party, it must show proof of ownership and a transfer agreement with the owner. Developers also need a written commitment from the tree owner not to clear-cut within the project lifetime. Provincial and city-level environment departments, working with forestry departments, are to inspect registered projects and handle public complaints.
On 10 October 2026 the MEE posted two revised methodologies. The afforestation methodology was updated from its first version to CCER-14-001-V02 in a notice issued with the NFGA, dated 9 October. The mangrove creation methodology moved to CCER-14-002-V02 in a notice issued with the Ministry of Natural Resources, dated 8 October. Both revisions take effect 30 days after issue, and projects already registered under the earlier versions keep using them.
The mangrove revision allows several mangrove, coastal salt-marsh and seagrass restoration projects in the same province to be bundled into a single registration. Owners of all bundled projects must authorise the application, reductions are counted separately for each project type, and the crediting period of the whole bundle ends if any owner loses rights to its sea area or land.

## Background

The national CCER market reopened on 22 January 2024, and the first new credits traded in March 2025, when 0.7488 Mt changed hands on day one at an average CNY 80.45 per tonne. The MEE published 12 methodologies in 2025. By the end of August 2026, 41 projects and 24.2335 Mt of credits were registered, cumulative trading reached 21.7068 Mt, and the average traded price stood at CNY 86.51 per tonne.
CCERs connect to the compliance market through offsets. Covered entities in the national ETS may use them for up to 5% of allowances due. Usage has grown from 3.7174 Mt for 2021-2022 compliance to 6.4727 Mt for 2023 compliance, used by 58 entities.

## Offset limits in Asian carbon pricing schemes

| Scheme | Offset credit limit | Basis |
|---|---|---|
| China national ETS (CCER) | 5% | Of allowances due |
| Taiwan carbon fee (domestic credits) | 10% | Of chargeable emissions |
| Korea K-ETS (KOC/KCU) | 10% | Legal ceiling on surrender obligation |
| Japan GX-ETS | 10% | Of each year's emissions |
| Singapore carbon tax (ICCs) | 5% | Of taxable emissions, from 1 January 2024 |

Korea's exact limit is set in each allocation plan within the 10% legal ceiling.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [关于发布《温室气体自愿减排项目方法学 乔木林经营碳汇（CCER—13—001—V01）》等2项方法学的通知 (环办气候函〔2026〕428号)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202611/t20261109_1185815.html) (MEE General Office and NFGA General Office, checked 2026-11-12)
- [关于发布《温室气体自愿减排项目方法学 造林碳汇（CCER—14—001—V02）》的通知 (环办气候函〔2026〕385号)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202610/t20261010_1175960.html) (MEE General Office and NFGA General Office, checked 2026-11-12)
- [关于发布《温室气体自愿减排项目方法学 红树林营造（CCER—14—002—V02）》的通知 (环办气候函〔2026〕384号)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202610/t20261010_1175958.html) (MEE General Office and Ministry of Natural Resources General Office, checked 2026-11-12)
- [全国碳市场发展报告（2025）](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [全国碳市场发展报告（2026）](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [全国碳市场发展报告（2024）](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [碳排放权交易管理办法（试行） (MEE Order No. 19)](https://www.mee.gov.cn/gzk/gz/202112/P020211213372253773271.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)

Data book: https://asiacarbondesk.com/china-national-ets/, https://asiacarbondesk.com/taiwan-carbon-fee/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/singapore-carbon-tax/


---

# Thailand's Council of State reaches penalty provisions in week 26 of its review of the draft Climate Change Act

_Published 2026-11-12 · Event 2026-11-07 · Policy and institutions · Thailand · https://asiacarbondesk.com/news/20261112-th-climate-act-review-week26/_

In an update posted on 7 November 2026, DCCE reported that the Council of State committee had finished chapter 12 on adaptation in week 26 of its review of the draft Climate Change Act.
The committee also took up chapter 13 on a climate taxonomy and opened the penalty provisions, with penalties and the carbon tax chapter set for the following week.
The review started on 5 May 2026; the draft approved by the cabinet in December 2025 has 205 sections in 14 chapters.

## What happened

The Department of Climate Change and Environment (DCCE) posts a weekly note on the Council of State review. In week 26, posted on 7 November 2026, Director-General Pirun Saiyasitpanich and DCCE staff briefed the committee as it closed chapter 12, covering adaptation action plans, provincial and local plans and progress tracking. The committee then examined chapter 13, a classification standard for climate-related economic activity, with DCCE presenting its aims and foreign taxonomy practice. It also started on penalties, including offences tied to reporting greenhouse gas emission data.
The notes posted since mid-September trace the market chapters. Week 18 (12 September) closed chapter 8 on emissions trading and opened chapter 9 on a border carbon adjustment. Week 21 (3 October) covered chapter 10, the carbon tax: how liability differs from the border mechanism, the proposal to make the Excise Department and the Customs Department the collecting agencies, and filing, payment and assessment notices. Week 22 (9 October) dealt with officials' assessment powers and opened chapter 11 on carbon credits. Weeks 23 and 24 (16 and 22 October) covered credits for international purposes, links to capital-market law, transfers and sales, and the definition of a carbon credit business, closing chapter 11. Week 25 (31 October) worked through adaptation data and plans.

## Background

The cabinet approved the draft Act in principle on 2 December 2025. It provides for an emissions trading system with allowance allocation, a border carbon adjustment, a carbon tax and carbon credits. The cabinet-approved text has not been published; the 2024 public-consultation draft placed the ETS in chapter 8, sections 72-99, with a cap set in line with national targets and free and/or auctioned allowances, and put the carbon tax in chapter 10, sections 118-147, with rates set by ministerial regulation up to a ceiling in the Act.
A carbon price already exists outside the draft Act. Since 29 March 2025, fuel excise has included a carbon component priced at THB 200 per tCO2e, and on 20 February 2026 the Excise Department signed an MOU with 18 companies on a digital oil-data link to support a future carbon tax. No ETS start date, covered sectors or thresholds have been set.

## Penalties for missing allowances in Asian ETS laws

| Jurisdiction | Law and status | Penalty for an allowance shortfall |
|---|---|---|
| Thailand | Draft Climate Change Act; Council of State review since 5 May 2026 | Fine up to 3 times the average allowance auction price (2024 draft) |
| Korea | ETS Act enacted 14 May 2012 | Up to 3 times the average market price of the compliance year, per tonne |
| Taiwan | Climate Change Response Act amended 15 Feb 2023 (future ETS) | 3 times the carbon market price per tonne, capped at NT$1,500 |
| China | National ETS rules (revised text) | CNY 1-5 million fine, then 5-10 times the prior month's average price per missing allowance |

The Thai penalty is from the 2024 consultation draft and may change in the cabinet-approved text.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [DCCE pushes the draft Climate Change Act B.E. .... in week 26 (news release, 7 November 2026)](https://www.dcce.go.th/31813/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 25 (news release, 31 October 2026)](https://www.dcce.go.th/31415/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 24 (news release, 22 October 2026)](https://www.dcce.go.th/31142/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 23 (news release, 16 October 2026)](https://www.dcce.go.th/30734/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 22 (news release, 9 October 2026)](https://www.dcce.go.th/30503/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 21 (news release, 3 October 2026)](https://www.dcce.go.th/30338/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [DCCE pushes the draft Climate Change Act B.E. .... in week 18 (news release, 12 September 2026)](https://www.dcce.go.th/29890/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [Summary of key points of the draft Climate Change Act B.E. .... (public-consultation draft, file dated November 2024)](https://www.dcce.go.th/wp-content/uploads/2024/06/%E0%B8%AA%E0%B8%A3%E0%B8%B8%E0%B8%9B%E0%B8%AA%E0%B8%B2%E0%B8%A3%E0%B8%B0%E0%B8%AA%E0%B8%B3%E0%B8%84%E0%B8%B1%E0%B8%8D%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%A3%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%9E%E0%B8%A3%E0%B8%B0%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8D%E0%B8%B1%E0%B8%95%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%9B%E0%B8%A5%E0%B8%B5%E0%B9%88%E0%B8%A2%E0%B8%99%E0%B9%81%E0%B8%9B%E0%B8%A5%E0%B8%87%E0%B8%AA%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A0%E0%B8%B9%E0%B8%A1%E0%B8%B4%E0%B8%AD%E0%B8%B2%E0%B8%81%E0%B8%B2%E0%B8%A8-%E0%B8%9E.%E0%B8%A8.-1-1.pdf) (Department of Climate Change and Environment (DCCE), checked 2026-11-12)
- [DCCE begins first-round review of the draft Climate Change Act with the Office of the Council of State (news release, 5 May 2026)](https://www.dcce.go.th/22044) (Department of Climate Change and Environment (DCCE), checked 2026-11-12)
- [온실가스 배출권의 할당 및 거래에 관한 법률 [시행 2026. 4. 29.] [법률 제21071호, 2025. 10. 28., 일부개정] (본문·부칙)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) (Korea Ministry of Government Legislation, National Law Information Center (law.go.kr), checked 2026-11-12)
- [氣候變遷因應法 (Climate Change Response Act), amended 15 February 2023](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020098) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-12)
- [碳排放权交易管理暂行条例 (State Council Decree No. 775, as revised 8 Aug 2026; posted 10 Oct 2026)](https://www.mee.gov.cn/zcwj/gwywj/202610/t20261010_1175967.shtml) (Ministry of Ecology and Environment (MEE), reproducing the State Council text, checked 2026-11-12)
- [Cabinet approves in principle the draft Climate Change Act B.E. .... (news release, 2 December 2025)](https://www.dcce.go.th/14324/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)
- [Excise Department Notification on criteria and conditions for setting the carbon price for oil and petroleum products (issued 28 March 2025), Royal Gazette Vol. 142, Special Part 171 D, pp. 7-9, 22 April 2025](https://ratchakitcha.soc.go.th/documents/66732.pdf) (Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance, checked 2026-11-12)
- [Press release No. 4/2569: Excise Department signs MOU with oil-industry operators on a digital oil-data link to support a future carbon tax (20 February 2026)](https://webdev.excise.go.th/act2560/files/secretary/Press4-2569.pdf) (Excise Department, Ministry of Finance, checked 2026-11-12)

Data book: https://asiacarbondesk.com/thailand-carbon-pricing/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/taiwan-carbon-fee/


---

# Thailand's TGO says ICAO has approved Premium T-VER to supply CORSIA credits for 2027-2029

_Published 2026-11-12 · Event 2026-11-05 · Credits and projects · Thailand · https://asiacarbondesk.com/news/20261112-th-icao-premium-tver-corsia/_

TGO says ICAO approved Premium T-VER, the higher tier of Thailand's T-VER programme, on 5 November 2026 as a source of eligible units for CORSIA's second phase, 2027-2029; ICAO's own list had not been updated by 12 November.
TGO reports that Premium T-VER was one of 4 standards approved out of 25 assessed in 2026, and the first approved standard run by a government body.
Only credits from reductions made between 1 January 2021 and 31 December 2029 qualify; the tier has 9 registered projects and a first issuance of 60 tCO2e.

## What happened

The Thailand Greenhouse Gas Management Organization (TGO) announced on 6 November 2026 that the International Civil Aviation Organization (ICAO) had, on 5 November, recognised Premium T-VER as a programme able to supply carbon credits to CORSIA, the Carbon Offsetting and Reduction Scheme for International Aviation. The approval applies to the scheme's second phase, the 2027-2029 compliance period, in which airlines flying covered international routes offset part of their emissions with eligible units.
TGO's notice gives three further facts. ICAO's 2026 assessment cycle looked at 25 standards and approved 4, including Premium T-VER. Premium T-VER is, by TGO's account, the first government-administered standard in the world to win this approval. And units used under phase 2 must come from reductions achieved from 1 January 2021 to 31 December 2029. The notice does not name the other approved programmes or list any conditions. ICAO's public page on eligible units still showed its April 2026 edition when checked on 12 November 2026.

## Background

T-VER is Thailand's domestic crediting programme, run by TGO; its registration statistics start in fiscal 2014. Its original Standard tier is large: 654 projects registered through fiscal 2026 and 28,247,683 tCO2e issued. Premium T-VER, the tier built to meet international requirements, is still small. TGO's registry lists 4 Premium registrations in fiscal 2024, 3 in fiscal 2025 and 2 in fiscal 2026, all in forestry and agriculture, with combined expected reductions of 25,291 tCO2e a year. The registry records one Premium issuance so far: 60 tCO2e in fiscal 2026, which ended on 30 September 2026.
Prices also split by project type. A TGO open-data file on over-the-counter T-VER trading, labelled fiscal 2026 and last updated on 24 April 2026, shows 4,904,654 tCO2e traded, worth THB 423,371,187, and forestry and agriculture credits fetched a weighted average of THB 411.21 per tCO2e. Domestic carbon pricing is growing alongside: fuel excise has carried a THB 200 per tCO2e carbon component since March 2025, and the cabinet approved a draft Climate Change Act in principle on 2 December 2025 that covers carbon credits.

## Domestic crediting programmes: registered projects and volume

| Programme | Registered projects | Credits issued or registered |
|---|---|---|
| Thailand Premium T-VER (FY2024-FY2026) | 9 | 60 tCO2e issued |
| Thailand Standard T-VER (FY2014-FY2026) | 654 | 28,247,683 tCO2e issued |
| Japan J-Credit (cumulative) | 1,497 | 14.87 Mt-CO2 certified |
| China CCER (to end-August 2026) | 41 | 24.2335 Mt registered |

Definitions differ. J-Credit counts certified volume and includes transferred projects; the CCER figure is registered reductions. Thai figures cover single and bundled projects and exclude programmes of activities.

## What is next

- 2027-01-01: CORSIA's second compliance period (2027-2029) begins, the first period for which Premium T-VER units are eligible

## Sources

- [ICAO recognises TGO's Premium T-VER as a standard for carbon credits usable under CORSIA phase 2 (2027-2029) (news, 6 November 2026)](https://www.tgo.or.th/2023/index.php/th/post/icao-รับรอง-premium-t-ver-ของ-อบก-เป็นมาตรฐานในการรับรองคาร์บอนเครดิตที่สามารถใช้ชดเชยการปล่อยก๊าซเรือนกระจกจากสายการบินภายใต้กลไก-corsia-ระยะที่-2) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [CORSIA Eligible Emissions Units (current edition April 2026)](https://www.icao.int/CORSIA/corsia-eligible-emissions-units) (International Civil Aviation Organization (ICAO), checked 2026-11-12)
- [Premium T-VER registration statistics by fiscal year (single and bundled projects)](https://tver.tgo.or.th/database/summary/registration/2/1) (TGO, checked 2026-11-12)
- [Premium T-VER carbon credit issuance statistics by fiscal year](https://tver.tgo.or.th/database/summary/credit/2/1) (TGO, checked 2026-11-12)
- [Standard T-VER carbon credit issuance statistics by fiscal year](https://tver.tgo.or.th/database/summary/credit/1/1) (TGO, checked 2026-11-12)
- [T-VER database: Premium T-VER registration and issuance statistics by fiscal year (retrieved 12 November 2026)](https://tver.tgo.or.th/database/summary/registration/2/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [T-VER database: statistics of registered projects by fiscal year (Standard T-VER, single and bundled projects; retrieved 12 November 2026)](https://tver.tgo.or.th/database/summary/registration/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [T-VER database: statistics of carbon credit issuance by fiscal year (Standard T-VER, single and bundled projects; retrieved 12 November 2026)](https://tver.tgo.or.th/database/summary/credit/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [Ｊ－クレジット制度について（データ集）2026年9月](https://japancredit.go.jp/data/pdf/credit_002.pdf) (J-Credit Scheme Secretariat, checked 2026-11-12)
- [全国碳市场发展报告（2026） (September 2026, PDF)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [Open data cc_02_02: T-VER carbon credit trading price and value statistics by project type (CSV, last modified 27 April 2026)](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) (TGO Open Data, checked 2026-11-12)
- [Excise Department Notification on criteria and conditions for setting the carbon price for oil and petroleum products (issued 28 March 2025), Royal Gazette Vol. 142, Special Part 171 D, pp. 7-9, 22 April 2025](https://ratchakitcha.soc.go.th/documents/66732.pdf) (Royal Gazette (Secretariat of the Cabinet) / Excise Department, Ministry of Finance, checked 2026-11-12)
- [Cabinet approves in principle the draft Climate Change Act B.E. .... (news release, 2 December 2025)](https://www.dcce.go.th/14324/) (Department of Climate Change and Environment (DCCE), Ministry of Natural Resources and Environment, checked 2026-11-12)

Data book: https://asiacarbondesk.com/thailand-carbon-pricing/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/china-national-ets/


---

# Australia puts the interim Safeguard unit price for 2026-27 at A$38.47 after the September quarter

_Published 2026-11-12 · Event 2026-11-02 · Markets and prices · Australia · https://asiacarbondesk.com/news/20261112-au-safeguard-unit-price-estimate/_

Australia's climate department has published an interim Safeguard Mechanism unit price of A$38.47 for the 2026-27 financial year, based on the September quarter of 2026.
The figure compares with final default prescribed unit prices of A$36.99 for 2025-26, A$36.05 for 2024-25 and A$33.19 for 2023-24.
It remains well below the A$87.72 cost containment price that the Clean Energy Regulator charges in 2026-27.

## What happened

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) shows on its Safeguard Mechanism page, last updated on 2 November 2026, an interim estimate for the year to September of A$38.47 for the average prescribed unit price in 2026-27. The average for the September quarter of 2026 alone is the same A$38.47, since the financial year began on 1 July.
For 2025-26, the same page lists a final price of A$36.99. Earlier final values were A$36.05 for 2024-25 and A$33.19 for 2023-24. The department names RepuTex Energy IQ as the data source for the two latest years and Core Markets for 2023-24, and says the figures follow its published methodology. It must publish the final figure by 30 June each year and publishes the year-to-date interim estimate every quarter.
The price is used in one specific calculation. Facilities applying for trade-exposed baseline-adjusted (TEBA) status calculate their compliance cost as the tonnes by which they exceed their baseline, multiplied by the default prescribed unit price. On these figures, the 2026-27 interim estimate is 4% above the 2025-26 final value and 16% above the 2023-24 value.

## Background

The Safeguard Mechanism applies to facilities whose annual emissions exceed 100,000 tCO2e. Since the 2023 reforms, baselines fall by 4.9% a year to 2030, and facilities above their baseline must surrender ACCUs or SMCs before 1 April.
TEBA status is a subset of trade-exposed status for facilities facing an elevated risk of carbon leakage. It gives a reduced baseline decline rate for three years, based on a prescribed scheme impact metric; manufacturers measure that impact against EBIT and other facilities against revenue, under the department's published EBIT guidelines.
The Clean Energy Regulator also offers ACCUs from its cost containment measure at a fixed price, which rises by CPI plus 2% a year. That price was A$75 in 2023-24 and is A$87.72 in 2026-27. The measure held 6.1 million ACCUs at 30 September 2026.
The scheme is under review. The department's review page, updated on 13 October 2026, links to submissions on its consultation paper and lists policy positions and any draft rule amendments for early 2027. Items under review include the baseline decline rate for 2030-31 to 2034-35 and the arrangements for trade-exposed facilities.

## Three Safeguard price references by financial year (A$ per unit)

| Financial year | Default prescribed unit price (DCCEEW) | Cost containment price (CER) | Generic ACCU spot at end of June (CER) |
|---|---|---|---|
| 2023-24 | 33.19 | 75 | 34.34 (June 2024) |
| 2024-25 | 36.05 | 79.20 | 35.45 (June 2025) |
| 2025-26 | 36.99 | 82.68 | 37.95 (June 2026) |
| 2026-27 | 38.47 (interim, to September) | 87.72 | Not yet available |

Default prescribed unit prices are from the DCCEEW Safeguard Mechanism page. Percentages in the text are calculated from these values.

## What is next

- 2027-06-30: deadline for DCCEEW to publish the final 2026-27 default prescribed unit price (published by 30 June each year)

## Sources

- [Safeguard Mechanism (default prescribed unit price and year-to-date interim estimate; last updated 2 November 2026)](https://www.dcceew.gov.au/climate-change/emissions-reporting/national-greenhouse-energy-reporting-scheme/safeguard-mechanism) (Department of Climate Change, Energy, the Environment and Water, checked 2026-11-12)
- [2026-27 Review of the Safeguard Mechanism (last updated 13 October 2026)](https://www.dcceew.gov.au/climate-change/emissions-reporting/national-greenhouse-energy-reporting-scheme/safeguard-mechanism/2026-67-review-of-the-safeguard-mechanism) (Department of Climate Change, Energy, the Environment and Water, checked 2026-11-12)
- [Managing excess emissions](https://cer.gov.au/schemes/safeguard-mechanism/managing-excess-emissions) (Clean Energy Regulator, checked 2026-11-12)
- [Quarterly Carbon Market Report - June Quarter 2026](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) (Clean Energy Regulator, checked 2026-11-12)
- [QCMR Q3 2026 data release workbook](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) (Clean Energy Regulator, checked 2026-11-12)

Data book: https://asiacarbondesk.com/australia-safeguard-mechanism/


---

# Australia adds a second Nature Repair Market method as registered biodiversity projects reach four

_Published 2026-11-12 · Event 2026-10-30 · Policy and institutions · Australia · https://asiacarbondesk.com/news/20261112-au-nature-repair-second-method/_

Australia's Clean Energy Regulator announced on 30 October 2026 a second method under the Nature Repair Market, covering the enhancement and maintenance of native vegetation.
Two projects were registered in October, on 2 and 9 October, taking the Biodiversity Market Register to four projects, all in New South Wales.
No biodiversity certificate has yet been issued, and both October projects plan to run alongside ACCU plantings on the same land.

## What happened

The Clean Energy Regulator (CER) announced on 30 October 2026 that the enhancing native vegetation method is available. The legal instrument, the Nature Repair (Enhancing Native Vegetation) Methodology Determination 2026, was made on 27 October and registered on the Federal Register of Legislation on 29 October. A companion instrument, the Nature Repair Amendment (Environmental Offsets and Other Measures) Rules 2026, was made and registered on the same days.
The new method is the second under the scheme. It covers projects that restore, enhance or maintain native forests, woodlands, shrublands and grasslands, through activities such as planting, assisted regeneration and control of pests, weeds and grazing. Every project must measure the condition of the ecosystem and how securely the site is protected, and may also assess outcomes for threatened species and culturally significant entities. Projects can be voluntary, or can apply to be registered as offset-capable; the CER notes that this status does not guarantee use as an environmental offset.
Earlier in the month the CER registered the third and fourth projects. The Nortongong Biodiversity Restoration Project near Coonamble, registered on 2 October, plans to replant 968 hectares. Silva Capital Cooplacurripa Biodiversity Project No. 2 in north-east New South Wales, registered on 9 October, covers 1,230 hectares. Both use the first method, Replanting Native Forest and Woodland Ecosystems, and both proponents intend to stack the project with ACCU Scheme plantings under the Reforestation by Environmental or Mallee Plantings method.
The register lists four projects in total, registered on 12 August 2025, 27 May 2026, 2 October 2026 and 9 October 2026. All four show the certificate status as not issued.

## Background

The Nature Repair Market rests on the Nature Repair Act 2023. Unlike the carbon scheme, it issues one digital biodiversity certificate per project rather than one unit per tonne. Certificates can be held, sold or deposited with the CER and are cancelled at the end of the project's permanence period.
The carbon scheme alongside it is much larger and older. The Carbon Credits (Carbon Farming Initiative) Act received assent on 15 September 2011, and the ACCU Scheme issues one unit per tonne of carbon dioxide equivalent stored or avoided. It registered 416 projects in 2024 and 407 in 2025. The CER presents stacking, where one area of land carries both a biodiversity project and a carbon project, as a way to support project viability, provided each project meets its own scheme's rules.
The Safeguard Mechanism creates compliance demand for ACCUs. The CER lists use of a biodiversity certificate as an environmental offset under Commonwealth, state or territory legislation, for relevant methods, as one possible source of demand, alongside disclosure-driven, philanthropic and carbon-market buyers.

## Australia's two land-based schemes and comparable offset systems

| Scheme | Unit | Scale |
|---|---|---|
| Australia ACCU Scheme (2011 Act) | 1 ACCU per tCO2e | 407 projects registered in 2025 |
| Australia Nature Repair Market (2023 Act) | 1 biodiversity certificate per project | 4 projects registered; 2 methods; no certificates issued |
| India CCTS offset mechanism | 1 credit per tCO2e | 9 approved methodologies |
| Japan J-Credit | Not recorded in the data book | 1,497 registered projects |

Nature Repair figures are from the CER Biodiversity Market Register as read on 12 November 2026.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [New method expands Nature Repair Market project opportunities (30 October 2026)](https://cer.gov.au/news-and-media/news/2026/october/new-method-expands-nature-repair-market-project-opportunities) (Clean Energy Regulator, checked 2026-11-12)
- [Nature Repair (Enhancing Native Vegetation) Methodology Determination 2026 (F2026L01438)](https://www.legislation.gov.au/F2026L01438/asmade) (Federal Register of Legislation, checked 2026-11-12)
- [Third project registered under the Nature Repair Market (2 October 2026)](https://cer.gov.au/news-and-media/news/2026/october/third-project-registered-under-nature-repair-market) (Clean Energy Regulator, checked 2026-11-12)
- [Fourth project registered under the Nature Repair Market (9 October 2026)](https://cer.gov.au/news-and-media/news/2026/october/fourth-project-registered-under-nature-repair-market) (Clean Energy Regulator, checked 2026-11-12)
- [Biodiversity Market Register](https://cer.gov.au/markets/reports-and-data/biodiversity-market-register) (Clean Energy Regulator, checked 2026-11-12)
- [Enhancing native vegetation method](https://cer.gov.au/schemes/nature-repair-market-scheme/enhancing-native-vegetation-method) (Clean Energy Regulator, checked 2026-11-12)
- [Biodiversity certificates](https://cer.gov.au/markets/biodiversity-certificates) (Clean Energy Regulator, checked 2026-11-12)
- [Nature Repair Amendment (Environmental Offsets and Other Measures) Rules 2026 (F2026L01436)](https://www.legislation.gov.au/F2026L01436/asmade) (Federal Register of Legislation, checked 2026-11-12)

Data book: https://asiacarbondesk.com/australia-safeguard-mechanism/


---

# METI proposes letting GX-ETS firms bank surplus allowances up to 15% of a year's allocation

_Published 2026-11-12 · Event 2026-10-27 · Policy and institutions · Japan · https://asiacarbondesk.com/news/20261112-jp-ets-banking-limit-proposal/_

On 27 October 2026, METI proposed that companies in the GX-ETS keep banked surplus only up to 15% of their allocation two years earlier.
Surplus above that line that is not sold on the government allowance market by the end of August would be deducted from a later allocation.
The first deduction would be calculated in FY2029, two years after the market opens around autumn FY2027.

## What happened

The METI secretariat presented a 47-page paper on banking rules and on publishing allocation data to the tenth meeting of the emissions trading subcommittee on 27 October 2026. The paper is a draft for discussion; the panel plans to compile its conclusions around the end of 2026 and then revise ministerial ordinances and notices.
The draft keeps banking but caps how much surplus a company can hold without selling. The deduction for year T would equal the cumulative surplus up to year T-2 (total allocation minus total verified emissions), minus net sales, minus a threshold of 15% of the T-2 allocation; a negative result means no deduction. Net sales count only allowances sold on the allowance market run by the GX Promotion Organization, including sales into its reverse auctions, minus everything bought on or off the market, measured up to the end of August of year T. The 15% figure reflects the largest two-year shortfall a firm could face when its activity grows by just under the 7.5% level that would trigger an allocation adjustment.
In a worked example in the paper, a firm whose cumulative allocation is 3.0 Mt and cumulative emissions 2.6 Mt has 0.4 Mt of surplus; with a T-2 allocation of 1.0 Mt, its threshold is 0.15 Mt; if it has sold 0.2 Mt by the prior August, selling another 0.05 Mt avoids any deduction. Because FY2026 and FY2027 allowances are both allocated in autumn FY2027, the first deduction would be calculated in FY2029. The paper also asks members to choose how allocations should be published: by company or by sector, and soon after each compliance cycle or in a batch years later. It proposes publishing each company's emissions after its compliance cycle ends.

## Background

Japan's mandatory ETS took effect in FY2026 with free allocation based on sector benchmarks and grandfathering, and paid auctioning is set to start only for power generators from FY2033. The FY2026 price band runs from JPY 1,700 to JPY 4,300 per tonne. Because the ceiling was set from current fuel-switching costs, the secretariat argues that unlimited banking could build expectations of tighter post-2030 rules into today's prices and hold back supply.
The paper cites Korea's experience: the K-ETS introduced market makers and a banking limit together in Phase 2 to push surplus into the market, then let securities firms join and added more market makers in Phase 3. Korea's Phase 4 now relies on an 85 Mt market stability reserve and an effective auction share of 11.0% to manage supply, tools Japan does not yet have.

## Supply levers in Japan's and Korea's emissions trading schemes

| Lever | Japan GX-ETS | Korea K-ETS (Phase 4) |
|---|---|---|
| Allocation | Free allocation by sector guidelines | Effective auction share of 11.0% |
| Paid auctioning | Power generators from FY2033 | Power sector 15% in 2026 rising to 50% in 2030 |
| Reserve inside the cap | None; floor held by GX Promotion Organization buy-backs | 85 Mt market stability reserve |
| Offset credit limit | 10% of each year's emissions | Up to 10% of surrender obligation |

Japan's banking threshold of 15% is an October 2026 secretariat proposal, not a final rule.

## What is next

- 2028-01-31: First surrender deadline, covering FY2026 emissions.

## Sources

- [バンキング適正化措置、割当量等の公表（第10回排出量取引制度小委員会 事務局資料, 2026-10-27）](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/010_03_00.pdf) (METI, checked 2026-11-12)
- [第10回 排出量取引制度小委員会（開催資料）](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/010.html) (METI, checked 2026-11-12)
- [排出枠の割当ての実施に関する指針（2026-03-30）](https://www.meti.go.jp/policy/energy_environment/global_warming/jisshishishin.pdf) (METI, checked 2026-11-12)
- [脱炭素成長型経済構造への円滑な移行の推進に関する法律（2026-04-01施行版）](https://laws.e-gov.go.jp/law/505AC0000000032/20260401_507AC0000000052) (e-Gov (Digital Agency), checked 2026-11-12)
- [2035 NDC and Phase 4 allocation plan (press release, 2025.11.11)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)
- [온실가스 배출권의 할당 및 거래에 관한 법률 시행령](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) (Korea Ministry of Government Legislation (law.go.kr), checked 2026-11-12)

Data book: https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/


---

# India's energy efficiency bureau proposes monthly carbon credit trading on the last Thursday, with a two-hour bidding window

_Published 2026-11-12 · Event 2026-10-19 · Markets and prices · India · https://asiacarbondesk.com/news/20261112-in-ccc-trading-procedure-draft/_

India's Bureau of Energy Efficiency published a draft procedure on 19 October 2026 for trading Carbon Credit Certificates on power exchanges.
Trading would take place once a month, on the last Thursday, with bids accepted from 12:00 to 14:00 and prices set by 16:00.
Comments were invited for 15 days, until 2 November 2026, after which the procedure goes to the regulator for approval.

## What happened

The Bureau of Energy Efficiency (BEE), the administrator of India's Carbon Credit Trading Scheme (CCTS), placed a Draft Detailed Procedure for Transaction of Carbon Credit Certificates under the Compliance Mechanism in the public domain with a notice dated 19 October 2026. The procedure is required by the Central Electricity Regulatory Commission (CERC) regulations on Carbon Credit Certificates (CCCs) notified on 27 February 2026, and was prepared with Grid Controller of India as registry. After the comment period, BEE is to submit the final text to CERC for approval.
The draft covers three parts: registration with the registry, the interfaces between power exchanges, registry, administrator and participants, and the dealing and transfer of certificates. Entities registered on the Indian Carbon Market portal would be registered with the registry automatically through a data link, without a separate application. Each certificate would carry a serial number built from the compliance year, entity registration number and issue date.
On a trading day the registry would freeze each entity's certificate holdings at 11:00. The bidding window would run from 12:00 to 14:00 on all designated exchanges at once. Exchanges would pass bids to the registry by 14:30, the registry would check sell bids against holdings by 15:00, and exchanges would publish the clearing price and volume by 16:00 through a closed double-sided uniform price auction. Registry accounts would be updated by 16:45. If the last Thursday is a holiday, trading moves to the next working day.
The draft also sets limits. Certificates bought on an exchange cannot be resold, voluntary buyers must retire what they buy, bilateral trades are not allowed even within a corporate group, and transfers follow first-in, first-out order.

## Background

The CCTS was notified on 28 June 2023 and amended on 19 December 2023. The Greenhouse Gases Emission Intensity Target Rules, 2025 (G.S.R. 739(E), 8 October 2025) set targets for obligated entities in four sectors (aluminium, cement, chlor-alkali, and pulp and paper), using 2023-24 as the baseline year, with compliance years 2025-26 and 2026-27. Entities that beat their target receive one certificate per tonne of CO2e; those that miss it must buy certificates or pay environmental compensation equal to twice the average certificate price of that year's trading cycle.
CERC's regulations already provide for trading on a monthly basis, or at another frequency set in a procedure the Commission approves, and bar entities with more than three bid defaults in a quarter from dealing for six months. The October draft repeats that sanction. No floor or forbearance price has yet been found in the official texts, and no certificate has been traded. When it answered Parliament on 13 March 2025, the Ministry of Power expected compliance trading to begin in 2026-27.

## How often carbon units trade in selected Asian compliance markets

| Market | Trading schedule | Source detail |
|---|---|---|
| India CCTS (draft, October 2026) | One session a month, last Thursday; bids 12:00 to 14:00 | Monthly under CERC rules, unless the Commission approves another frequency |
| Korea K-ETS (Korea Exchange) | Every trading day 10:00 to 12:00; auctions 14:00 to 15:00 | Since 24 Nov 2025 |
| China national ETS | Trading on exchange working days | 243 trading days in 2025 |
| Indonesia IDXCarbon | 07:00 to 19:00 exchange time | From 13 Jul 2026 |

Schedules are taken from each country's data book; times are local.

## What is next

- 2027-03-31: end of compliance year 2026-27, the last year with notified targets

## Sources

- [Invitation of Public Comments and Suggestions on the Draft Detailed Procedure for Transaction of Carbon Credit Certificates under the Compliance Mechanism (No. 45/02/NMEEE/Energy Efficiency/2025-CCTS, 19 October 2026)](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-20510f1d3ee6d4ba_1792664827.pdf) (Bureau of Energy Efficiency, checked 2026-11-12)
- [Draft Detailed Procedure for Transaction of CCCs under Compliance Mechanism (October 2026)](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-ff98b7dece646232_1792561430.pdf) (Bureau of Energy Efficiency, checked 2026-11-12)
- [CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026](https://cercind.gov.in/regulations/205-Noti.pdf) (Central Electricity Regulatory Commission, checked 2026-11-12)
- [G.S.R. 739(E), Greenhouse Gases Emission Intensity Target Rules, 2025](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) (Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency, checked 2026-11-12)
- [Lok Sabha Unstarred Questions No. 2377 and 2401 (answered 13.03.2025)](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) (Ministry of Power, checked 2026-11-12)

Data book: https://asiacarbondesk.com/india-ccts/


---

# China opens consultation on 11 draft CCER methodologies, from battery storage to green ammonia and waste-oil biodiesel

_Published 2026-11-12 · Event 2026-10-16 · Credits and projects · China · https://asiacarbondesk.com/news/20261112-cn-ccer-draft-methodologies-consultation/_

China's Ministry of Ecology and Environment posted 2 consultation letters covering 11 draft CCER methodologies on 16 October 2026.
The drafts span 6 fuel and storage project types in one letter and 5 energy, transport and waste project types in the other.
Comments were due by 23 October 2026, a 7-day window after posting.

## What happened

The General Office of the Ministry of Ecology and Environment (MEE) posted two letters on 16 October 2026, both dated 15 October, inviting public comment on draft methodologies for China Certified Emission Reductions (CCER). Letter Huanban Bianhan [2026] No. 346 covers six drafts and letter No. 345 covers five. Each draft comes with an explanatory note. Any organisation or individual could send written comments, with a closing date of 23 October 2026.
The six drafts in letter No. 346 are: methanol from gasification of agricultural and forestry biomass; the same route coupled with green hydrogen; hydrotreated (hydrocarbon) biodiesel made from waste oils and used as fuel; ester-type biodiesel from waste oils used as fuel; sodium-ion battery energy storage stations; and vanadium redox flow battery storage stations.
The five drafts in letter No. 345 are: synthetic ammonia made with renewable energy; electrification of haul vehicles at mines; pumped-storage hydropower stations; chemical recycling of low-value waste plastics; and centralised anaerobic digestion of food waste with biogas recovery.
The consultation follows a separate set of nature-based releases in the same period. Revised afforestation and mangrove methodologies were posted on 10 October, and two new forestry methodologies, for tree forest management and reforestation, on 9 November.

## Background

The CCER market reopened on 22 January 2024. According to the MEE's 2026 market report, 18 methodologies had been formally issued by the end of 2025, covering renewable power, ecosystem carbon sinks, non-CO2 gases and energy efficiency; the data book records 12 of them as published during 2025. Several of the newest types, such as renewable hydrogen by electrolysis and SF6 recovery from electrical equipment, were issued in December 2025.
Supply has grown with the methodology list. Registered projects rose from 33 with 17.7637 Mt of credits at the end of 2025 to 41 projects and 24.2335 Mt by the end of August 2026. CCER trading in 2025 reached 8.8441 Mt worth CNY 626 million at an average CNY 70.76 per tonne, and the average to the end of August 2026 was CNY 86.51.
How much demand new methodologies can meet also depends on offset rules. China lets national ETS entities cover up to 5% of the allowances they must surrender with CCERs. Singapore applies the same 5% share to international credits under its carbon tax, while Japan's GX-ETS and the legal ceiling in South Korea's K-ETS are set at 10%, and Vietnam's pilot ETS allows up to 30% of allocated allowances.

## Limits on using offset credits for compliance in Asian carbon pricing schemes (government rules)

| Scheme | Credits that count | Limit on use |
|---|---|---|
| China national ETS | CCER | Up to 5% of allowances due |
| Japan GX-ETS | Eligible offset credits | Up to 10% of each year's emissions |
| South Korea K-ETS | Offset credits (KOC/KCU) | Up to 10% of the surrender obligation (legal ceiling; exact limit set in the allocation plan) |
| Singapore carbon tax | International carbon credits (ICCs) | Up to 5% of taxable emissions, from 1 January 2024 |
| Taiwan carbon fee | Domestic credits / MOENV-recognised foreign credits | Up to 10% / up to 5% of chargeable emissions (foreign credits only for firms not designated high leakage risk) |
| Vietnam pilot ETS | Carbon credits | Up to 30% of a facility's allocated allowances |

All limits are taken from laws, decrees or official guidance published by each government. Bases differ (allowances due, emissions or allocation), so the percentages are not directly comparable.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [全国碳市场发展报告（2025）](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202509/W020250927515316322073.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-14)
- [关于公开征求《温室气体自愿减排项目方法学 农林生物质气化制甲醇（征求意见稿）》等6项方法学意见的函 (环办便函〔2026〕346号)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202610/t20261016_1183149.html) (MEE General Office, checked 2026-11-12)
- [关于公开征求《温室气体自愿减排项目方法学 可再生能源合成氨（征求意见稿）》等5项方法学意见的函 (环办便函〔2026〕345号)](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202610/t20261016_1183138.html) (MEE General Office, checked 2026-11-12)
- [关于发布《温室气体自愿减排项目方法学 乔木林经营碳汇（CCER—13—001—V01）》等2项方法学的通知](https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202611/t20261109_1185815.html) (MEE General Office and NFGA General Office, checked 2026-11-12)
- [全国碳市场发展报告（2026）](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [2025年全国碳市场平稳有序运行 圆满完成年度建设工作](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [碳排放权交易管理办法（试行） (MEE Order No. 19)](https://www.mee.gov.cn/gzk/gz/202112/P020211213372253773271.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-13)
- [ETS Subcommittee Interim Report – Implementation Guidelines for Allowance Allocation](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) (METI (Industrial Structure Council), checked 2026-11-13)
- [온실가스 배출권의 할당 및 거래에 관한 법률 시행령 (Enforcement Decree of the ETS Act)](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) (Korea Ministry of Government Legislation (law.go.kr), checked 2026-11-13)
- [Carbon Tax](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency (NEA), Singapore, checked 2026-11-13)
- [碳費收費辦法 (Regulations Governing the Collection of Carbon Fees)](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-13)
- [Decree No. 119/2025/ND-CP amending Decree 06/2022/ND-CP](https://congbaocdn.chinhphu.vn/CongBaoCP/VanBan/2025/6/45046/56700-1-2025769-770119-2025-nd-cp.pdf) (Official Gazette of Viet Nam, checked 2026-11-13)

Data book: https://asiacarbondesk.com/china-national-ets/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/taiwan-carbon-fee/, https://asiacarbondesk.com/vietnam-carbon-market-pilot/


---

# Australia issued a record 8.24 million ACCUs in the September quarter of 2026

_Published 2026-11-12 · Event 2026-10-15 · Credits and projects · Australia · https://asiacarbondesk.com/news/20261112-au-accu-issuance-q3-record/_

Australia's Clean Energy Regulator issued 8,243,260 Australian carbon credit units (ACCUs) in July to September 2026, the largest quarterly total in its data series.
Issuance for January to September 2026 reached 19.1 million units, already above the 18.8 million issued in the whole of 2024.
ACCUs held in the national registry rose to 68.9 million at 30 September, from 61.2 million three months earlier.

## What happened

On 15 October 2026 the Clean Energy Regulator (CER) released its data workbook for the September quarter of 2026, with figures as at 30 September. The full Quarterly Carbon Market Report with analysis is due by mid-December; the workbook was published early to give the market the numbers sooner.
The workbook shows 8,243,260 ACCUs issued in the quarter, up 51% from 5,462,817 in the same quarter of 2025 and well above the previous quarterly high of 6,998,012 in July to September 2023. Vegetation methods supplied 5,271,678 units, about 64% of the total and also a quarterly record for that group. Waste projects added 1,793,785, industrial fugitives 501,604, agriculture 342,360, savanna fire management 208,688 and energy efficiency 125,145. The year-to-date total stood at 19,139,145 units.
Project registrations slowed. The CER registered 63 new ACCU Scheme projects in the quarter, 30 of them soil carbon and 27 vegetation, bringing the 2026 total to 207, against 407 for all of 2025.
On the holding side, safeguard entities held 43.9 million of the 68.9 million ACCUs in the registry, project proponents 11.1 million and intermediaries 8.6 million. A further 6.1 million ACCUs sat in the cost containment measure, outside total holdings. Holdings of Safeguard Mechanism credit units (SMCs) were 11.0 million. Safeguard surrenders were light in the quarter, at 134,759 ACCUs and no SMCs, after 8,764,299 ACCUs and 2,572,367 SMCs were surrendered in January to March around the compliance deadline.

## Background

Annual ACCU issuance has grown from 3.88 million in 2013 to 17.0 million in 2021, 18.8 million in 2024 and 21.7 million in 2025. In its June quarter 2026 report the CER put first-half issuance at a record 10.9 million and estimated 2026 issuance at 22 to 26 million units. With 19.1 million issued by the end of September, the year reaches that range only if fourth-quarter issuance is at least 2.86 million.
Demand comes mainly from the Safeguard Mechanism, reformed in 2023 so that facility baselines fall by 4.9% a year to 2030. Safeguard surrenders of ACCUs and SMCs rose from 1.5 million units in 2024 to 10.1 million in 2025. Registry holdings have risen in step, from 22.7 million at the end of 2022 to 49.9 million at the end of 2024 and 60.7 million at the end of 2025.

## Domestic crediting schemes in the region: latest published scale

| Scheme | Latest annual issuance | Other scale measure |
|---|---|---|
| Australia ACCU Scheme | 21,653,923 units (calendar 2025) | 407 projects registered in 2025 |
| Thailand T-VER (Standard) | 4,355,196 tCO2e (FY2026) | 28,247,683 tCO2e issued FY2014-FY2026 |
| Japan J-Credit | No annual figure in the data book | 14.87 Mt certified in total; 1,497 registered projects |
| India CCTS offset mechanism | No issuance found yet | 9 approved methodologies; over 40 registrants (March 2026) |

Units are 1 tCO2e each in every scheme. Figures are from each country's data book and cover different periods.

## What is next

- 2026-12 (mid-December): full Quarterly Carbon Market Report for the September quarter of 2026, per the CER

## Sources

- [Safeguard Mechanism (DCCEEW, last updated 2 November 2026)](https://www.dcceew.gov.au/climate-change/emissions-reporting/national-greenhouse-energy-reporting-scheme/safeguard-mechanism) (Department of Climate Change, Energy, the Environment and Water, checked 2026-11-14)
- [Explore the Q3 2026 QCMR data workbook (news, 15 October 2026)](https://cer.gov.au/news-and-media/news/2026/october/explore-q3-2026-qcmr-data-workbook) (Clean Energy Regulator, checked 2026-11-12)
- [QCMR Q3 2026 data release workbook (data as at 30/09/2026)](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) (Clean Energy Regulator, checked 2026-11-12)
- [Quarterly Carbon Market Report - June Quarter 2026](https://cer.gov.au/markets/reports-and-data/quarterly-carbon-market-reports/quarterly-carbon-market-report-june-quarter-2026/australian-environmental-markets) (Clean Energy Regulator, checked 2026-11-12)
- [Safeguard baselines](https://cer.gov.au/schemes/safeguard-mechanism/safeguard-baselines) (Clean Energy Regulator, checked 2026-11-12)

Data book: https://asiacarbondesk.com/australia-safeguard-mechanism/


---

# Singapore and Mongolia open carbon project applications from 30 October with 49 eligible methodologies

_Published 2026-11-12 · Event 2026-10-08 · Credits and projects · Singapore · https://asiacarbondesk.com/news/20261112-sg-mongolia-call/_

Singapore and Mongolia announced on 8 October 2026 that project applications under their carbon credit agreement open on 30 October.
Mongolia is the sixth of Singapore's 12 partner countries where applications have opened.
The eligibility list names 49 methodologies across four crediting programmes.

## What happened

Singapore's Ministry of Energy, Trade and Industry and the National Environment Agency issued a joint press release on 8 October 2026. It states that developers may apply from 30 October 2026 for authorisation of carbon credit projects in Mongolia under the bilateral Implementation Agreement. The two governments review applications jointly and on a rolling basis.
The process has three stages. First, an applicant submits a concept note naming the programme and methodology. Second, it submits a project design document with a third-party validation report and, once both countries issue letters of authorisation, registers the project and starts work. Third, after verified credits are issued, Mongolia records the first transfer and confirms that corresponding adjustments are applied.
The eligibility list in the release covers 17 Gold Standard methodologies, 27 under Verra's Verified Carbon Standard, four under the Global Carbon Council and one under ART TREES. Projects using one HFC methodology are assessed case by case, and high-forest low-deforestation approaches for REDD+ are excluded. On Singapore's side, projects must also meet its seven environmental integrity principles, including additionality and permanence, and the reductions must take place from 2021 to 2030 inclusive.
Credits from authorised projects may be used by Singapore carbon tax payers to offset up to 5% of taxable emissions. Singapore commits to cancel 2% of authorised credits at first issuance.

## Background

Singapore signed the agreement with Mongolia on 6 October 2025. It was the tenth of the country's Implementation Agreements, which began with Papua New Guinea in December 2023. The total reached 12 when Lao PDR signed on 4 September 2026.
Signing an agreement does not open the door to projects by itself. Each partner first needs a published eligibility list and a call for applications. Ghana was first, with a call on 30 September 2024. Calls followed in Peru, Bhutan, Rwanda and Thailand, before Mongolia.
Singapore's Carbon Markets Cooperation site showed no projects on its Implementation Agreement register as of 2 November 2026. The National Environment Agency notes that a project may need as long as four years before it issues credits.

## Singapore's partners with open project applications

| Partner | Agreement signed | Applications opened |
|---|---|---|
| Ghana | 27 May 2024 | 30 September 2024 |
| Peru | 1 April 2025 | 24 October 2025 |
| Bhutan | 28 February 2025 | 20 November 2025 |
| Rwanda | 6 May 2025 | 30 January 2026 |
| Thailand | 19 August 2025 | 31 March 2026 |
| Mongolia | 6 October 2025 | Announced 8 October 2026, open from 30 October 2026 |

Opening dates for Peru, Bhutan, Rwanda and Thailand are the dates of the call announcements in the Carbon Markets Cooperation newsroom.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Singapore and Mongolia to open application process for carbon credit projects under bilateral Implementation Agreement (8 October 2026)](https://www.meti.gov.sg/newsroom/singapore-and-mongolia-to-open-application-process-for-carbon-credit-projects-under-bilateral-implementation-agreement/) (Ministry of Energy, Trade and Industry; National Environment Agency, checked 2026-11-12)
- [Press release PDF with Annexes A-C](https://isomer-user-content.by.gov.sg/1004/27b0f110-2793-4da0-95af-47fdb60348e6/Press%20Release%20-%20Singapore%20and%20Mongolia%20to%20open%20application%20process%20for%20carbon%20credit%20projects%20un.pdf) (Ministry of Energy, Trade and Industry, checked 2026-11-12)
- [Newsroom](https://www.carbonmarkets-cooperation.gov.sg/newsroom/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [Overall Project Register](https://www.carbonmarkets-cooperation.gov.sg/project-register/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [Carbon Tax](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency, checked 2026-11-12)

Data book: https://asiacarbondesk.com/singapore-carbon-tax/


---

# Thailand's T-VER registers a record 101 projects in fiscal 2026 and issues 4.36 million tCO2e

_Published 2026-11-12 · Event 2026-09-30 · Credits and projects · Thailand · https://asiacarbondesk.com/news/20261112-th-tver-fy2026-record-registrations/_

TGO's registry shows 101 Standard T-VER projects registered in fiscal 2026, which ended on 30 September 2026, the most in any year since registrations began in fiscal 2014.
Credits issued in the year reached 4,355,196 tCO2e across 57 projects, 28.2% more than the 3,396,815 tCO2e issued in fiscal 2025.
Cumulative Standard T-VER issuance now stands at 28,247,683 tCO2e across 456 projects in TGO's count.

## What happened

The Thailand Greenhouse Gas Management Organization (TGO) publishes T-VER statistics by Thai fiscal year, which runs from October to September. With fiscal 2026 closed on 30 September 2026, the registry lists 101 newly registered single and bundled projects, up from 93 in fiscal 2025 and 96 in fiscal 2024. Together they are expected to cut or remove 1,660,056 tCO2e a year. Forestry and agriculture projects account for 798,994 tCO2e of that, renewable energy for 572,486 tCO2e and efficiency in power and heat for 119,162 tCO2e; industrial wastewater, community wastewater and other types make up the rest.
Issuance in fiscal 2026 totalled 4,355,196 tCO2e. Renewable energy projects received 2,635,331 tCO2e, about 60.5% of the year's total, followed by solid waste management at 886,367 tCO2e, efficiency in power and heat at 202,964 tCO2e and methane recovery at 168,980 tCO2e. Industrial wastewater projects received 144,078 tCO2e, forestry and agriculture projects 143,631 tCO2e and carbon capture projects 140,949 tCO2e. The fiscal 2026 figure is the second highest on record after fiscal 2022, when 4,673,841 tCO2e were issued. The higher Premium T-VER tier added 2 registrations and its first issuance, 60 tCO2e.

## Background

Annual registrations stayed between 32 and 54 a year from fiscal 2017 to fiscal 2023, then rose to 96 in fiscal 2024. Issuance passed 1 million tCO2e for the first time in fiscal 2019, at 1,262,757 tCO2e, and has stayed above 3 million tCO2e a year since fiscal 2021.
Trading volumes are smaller than issuance. A TGO open-data file on over-the-counter T-VER trading, labelled fiscal 2026 and last updated on 24 April 2026, shows 4,904,654 tCO2e traded. Renewable energy credits made up 3,414,902 tCO2e of that volume, at a weighted average of THB 39.95 per tCO2e, while forestry and agriculture credits averaged THB 411.21. The file does not state when the period it covers begins. Only 13,665 tCO2e appears on TGO's carbon market portal as traded on the FTIX exchange, against 4,083,549 tCO2e traded bilaterally. TGO announced on 6 November 2026 that ICAO had approved Premium T-VER on 5 November as a source of CORSIA units for 2027-2029.

## Projects registered and credits issued: Thailand T-VER and Australia's ACCU Scheme

| Programme and year | Projects registered | Credits issued |
|---|---|---|
| Thailand Standard T-VER, FY2026 | 101 | 4,355,196 tCO2e |
| Thailand Standard T-VER, FY2025 | 93 | 3,396,815 tCO2e |
| Thailand Standard T-VER, FY2022 (issuance peak) | 53 | 4,673,841 tCO2e |
| Australia ACCU Scheme, 2025 | 407 | 21,653,923 ACCUs |

Thai fiscal years end on 30 September; Australian figures are calendar years. One ACCU represents one tCO2e. The 28.2% rise is calculated from TGO's FY2025 and FY2026 issuance.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [ICAO recognises TGO's Premium T-VER as a standard for carbon credits usable under CORSIA phase 2 (2027-2029) (news, 6 November 2026)](https://www.tgo.or.th/2023/index.php/th/post/icao-รับรอง-premium-t-ver-ของ-อบก-เป็นมาตรฐานในการรับรองคาร์บอนเครดิตที่สามารถใช้ชดเชยการปล่อยก๊าซเรือนกระจกจากสายการบินภายใต้กลไก-corsia-ระยะที่-2) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-14)
- [Standard T-VER carbon credit issuance statistics by fiscal year (single and bundled projects)](https://tver.tgo.or.th/database/summary/credit/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [Standard T-VER project registration statistics by fiscal year (single and bundled projects)](https://tver.tgo.or.th/database/summary/registration/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [Premium T-VER registration and issuance statistics](https://tver.tgo.or.th/database/summary/registration/2/1) (TGO, checked 2026-11-12)
- [T-VER database: statistics of registered projects by fiscal year (Standard T-VER, single and bundled projects; retrieved 12 November 2026)](https://tver.tgo.or.th/database/summary/registration/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [T-VER database: statistics of carbon credit issuance by fiscal year (Standard T-VER, single and bundled projects; retrieved 12 November 2026)](https://tver.tgo.or.th/database/summary/credit/1/1) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)
- [QCMR Q3 2026 data release workbook (data as at 30/09/2026, released 15 Oct 2026)](https://cer.gov.au/document/qcmr-data-workbook-september-quarter-2026) (Clean Energy Regulator, checked 2026-11-12)
- [Open data cc_02_02: T-VER carbon credit trading price and value statistics by project type (CSV, last modified 27 April 2026)](https://opendata.tgo.or.th/dataset/061c3709-1cdb-4af8-85f6-4c7cc6ce2b51/resource/1d9ad8ca-70c9-4f6e-bbd5-60eacb09d70e/download/cc_02_02.csv) (TGO Open Data, checked 2026-11-12)
- [Carbon market portal: T-VER trading prices and volumes by project type, bilateral (OTC) and FTIX exchange (retrieved 12 November 2026)](https://carbonmarket.tgo.or.th/modules/chart/classify.php) (Thailand Greenhouse Gas Management Organization (TGO), checked 2026-11-12)

Data book: https://asiacarbondesk.com/thailand-carbon-pricing/, https://asiacarbondesk.com/australia-safeguard-mechanism/


---

# Indonesia approves 238,281 tCO2e of carbon units for Bujang Raba, its first social forestry carbon landscape

_Published 2026-11-12 · Event 2026-09-28 · Credits and projects · Indonesia · https://asiacarbondesk.com/news/20261112-id-bujang-raba-forest-credits/_

Indonesia's Ministry of Forestry has approved the issuance of 238,281 tCO2e of carbon units for the Bujang Raba landscape in Jambi.
The approval covers about 6,634 hectares of a 7,292-hectare protected forest managed by five villages and 1,183 households.
The ministry describes it as the first social forestry landscape to enter carbon trading.

## What happened

In press release SP.563/HKLN/09/2026, dated 28 September 2026, the Ministry of Forestry reported a visit by the minister to the Bujang Raba carbon project in Bungo regency, Jambi province. Bujang Raba lies in the Bukit Panjang Rantau Bayur protection forest and is managed by communities under Indonesia's social forestry scheme, with support from the conservation group KKI Warsi.
The project was approved through Minister of Forestry Decree 551 of 2026, which authorises the issuance of non-SPE carbon units, meaning units certified under an international standard rather than Indonesia's own SPE-GRK certificates. The approved volume is 238,281 tCO2e on about 6,634 hectares. The landscape spans five village forests: Lubuk Beringin, Laman Panjang, Buat, Sungai Telang and Senamat Ulu.
According to the release, carbon activity in the area was halted in 2021 while specific rules were awaited. The approval decree was handed over at the launch of the Indonesia Forestry Carbon Hub in Jakarta on 6 July 2026, and the project documents are now being processed in the national carbon unit registry, SRUK.
The ministry also reported that, as of August 2026, social forestry permits covered about 8.45 million hectares nationally through 11,335 decrees for 1.43 million households.

## Background

Forestry carbon trading in Indonesia restarted in 2026 after a new legal base was put in place. Presidential Regulation 110/2025 on carbon economic value instruments was followed by Minister of Forestry Regulation 6/2026, which allows social forestry permit holders to take part in carbon trading with partners.
On 6 July 2026 the ministry launched the Indonesia Forestry Carbon Hub and handed approvals to a first group of forestry projects. Besides Bujang Raba, the release named the Sumatra Merang Peatland Project, the Katingan Peatland Restoration and Conservation Project and The Mayas Project.
The market rules changed in the same week. OJK Regulation 10/2026 took effect on 6 July, requiring exchange-traded units to be recorded in SRUK and allowing trade in foreign units not recorded there. In press release SP 166/OJK/DKPU/IX/2026 of 7 September 2026, OJK reported 159 registered service users on the carbon exchange between its launch on 26 September 2023 and 31 August 2026, with cumulative volume of about 1.98 million tCO2e and cumulative value of IDR 93.90 billion.
Indonesia's first compliance market predates both the exchange and the forestry approvals. The Ministry of Energy and Mineral Resources launched power-sector carbon trading on 22 February 2023, covering 99 coal-fired units in its first year, and reported 7.1 MtCO2e traded among covered plants in 2023. Coverage was widened to 146 units in 2024.

## Bujang Raba's approved volume against government-published carbon volumes

| Item | Volume | Note |
|---|---|---|
| Bujang Raba non-SPE approval (Indonesia) | 238,281 tCO2e | Approved by Ministry of Forestry decree, 2026 |
| Carbon exchange cumulative volume (Indonesia) | 1.98 million tCO2e | 26 Sep 2023 to 31 Aug 2026, reported by OJK |
| Power-sector carbon trading (Indonesia) | 7.1 MtCO2e | 2023, reported by the energy ministry |
| J-Credit cumulative certified volume (Japan) | 14.87 Mt-CO2 | All project types |

Approved issuance is not the same as units issued or traded. The power-sector figure is mostly bilateral trading among plants, not exchange volume.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Siaran Pers SP.563/HKLN/09/2026: Bujang Raba, Lanskap Perhutanan Sosial Pertama yang Masuk Perdagangan Karbon (28 September 2026)](https://www.kehutanan.go.id/pers/bujang-raba-lanskap-perhutanan-sosial-pertama-yang-masuk-perdagangan-karbon) (Kementerian Kehutanan, checked 2026-11-12)
- [Indonesia Forestry Carbon Hub Diluncurkan (6 July 2026)](https://www.kehutanan.go.id/news/indonesia-forestry-carbon-hub-diluncurkan-era-baru-perdagangan-karbon-transparan-dan-berintegritas-dimulai) (Kementerian Kehutanan, checked 2026-11-12)
- [Abstrak POJK 10 Tahun 2026](https://ojk.go.id/id/regulasi/Documents/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon/Abstrak%20POJK%2010%20Tahun%202026%20Perubahan%20Atas%20Peraturan%20Otoritas%20Jasa%20Keuangan%20Nomor%2014%20Tahun%202023%20tentang%20Perdagangan%20Karbon%20Melalui%20Bursa%20Karbon.pdf) (Otoritas Jasa Keuangan, checked 2026-11-12)
- [J-Credit Scheme data book (September 2026)](https://japancredit.go.jp/data/pdf/credit_002.pdf) (J-Credit Scheme Secretariat, checked 2026-11-12)
- [Siaran Pers SP 166/OJK/DKPU/IX/2026: RDK Agustus 2026 (7 September 2026)](https://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Documents/Pages/RDKB-Agustus-2026/SP%20166%20Kinerja%20dan%20Intermediasi%20Sektor%20Jasa%20Keuangan%20Terjaga%20Mendukung%20Akselerasi%20Pertumbuhan%20Ekonomi%20RDKB%20Agustus%202026.pdf) (Otoritas Jasa Keuangan, checked 2026-11-13)
- [Siaran Pers 385.Pers/04/SJI/2024: Transaksi Perdagangan Karbon Tahun 2023 Capai Rp84 miliar](https://www.esdm.go.id/id/media-center/arsip-berita/transaksi-perdagangan-karbon-tahun-2023-capai-rp84-miliar) (Kementerian Energi dan Sumber Daya Mineral, checked 2026-11-13)
- [99 Unit PLTU Ditargetkan Ikuti Perdagangan Karbon Tahun ini (13 March 2023)](https://www.esdm.go.id/id/berita-unit/direktorat-jenderal-ketenagalistrikan/99-unit-pltu-ditargetkan-ikuti-perdagangan-karbon-tahun-ini) (Kementerian Energi dan Sumber Daya Mineral, checked 2026-11-13)

Data book: https://asiacarbondesk.com/indonesia-idxcarbon/, https://asiacarbondesk.com/japan-gx-ets/


---

# Japan's ETS panel weighs a three-month trigger for its allowance price ceiling and floor

_Published 2026-11-12 · Event 2026-09-25 · Policy and institutions · Japan · https://asiacarbondesk.com/news/20261112-jp-ets-price-corridor-triggers/_

On 25 September 2026, METI put a draft design for the GX-ETS price ceiling and floor measures to its emissions trading subcommittee.
Under the draft, either measure would start when the monthly average market price stays above the ceiling, or below the floor, for three months in a row; the FY2026 bounds are JPY 4,300 and JPY 1,700 per tonne, and later years are indexed.
The floor would be defended through single-price reverse auctions run by the GX Promotion Organization, outside the exchange.

## What happened

At the ninth meeting of the Industrial Structure Council's emissions trading subcommittee on 25 September 2026, the METI secretariat (GX Group, Environmental Economy Office) tabled a 37-page paper on how the statutory price corridor of Japan's mandatory GX-ETS should work in practice. The paper is a proposal for discussion, not a final rule.
For the ceiling, the GX Promotion Act already lets companies that are short of allowances pay a charge equal to the reference ceiling price and be treated as holding the matching volume. The draft defines when that option opens. The reference price would be the simple average of daily contract prices on the allowance market in a calendar month, counted only if trades were made on at least 70% of that month's trading days. A price test would be met if this monthly average exceeds the ceiling for three consecutive months, the shortest period the paper found among overseas schemes. Testing for year T obligations would run from April of year T+1 to the January surrender deadline, against the year T+1 ceiling. A volume test would also apply from December: one month or more with no sell orders at or below the ceiling, or with buy orders left unfilled after all such sell orders are matched.
For the floor, the same three-month test would apply in reverse, at any time of the year. The GX Promotion Organization would then buy allowances in a reverse auction held off-exchange, open to the same participants as the allowance market. Winning offers would all receive one clearing price. The purchase formula and a maximum purchase price, set below the floor, would not be disclosed. Allowances bought this way would later be sold back in several rounds when the one-month average price nears the ceiling.

## Background

Japan's mandatory scheme took effect in FY2026 for companies emitting 100,000 t-CO2 or more a year. METI notified on 30 March 2026 a FY2026 reference ceiling of JPY 4,300 and an adjustment reference price (floor) of JPY 1,700 per tonne. From FY2027 each bound is the prior-year price multiplied by 1.03 plus projected corporate goods price inflation. A company that fails to surrender pays JPY 4,730 per missing tonne, or 1.1 times the ceiling.
Allowances for FY2026 are allocated free of charge in FY2027, and the government allowance market is planned to open around autumn FY2027. Paid auctioning starts only for power generators from FY2033, which is why Japan needs a buy-back tool rather than an auction reserve price to hold the floor in the meantime.

## How Japan and Korea keep allowance prices in a range

| Item | Japan GX-ETS (FY2026) | Korea K-ETS (Phase 4) |
|---|---|---|
| Upper price tool | Pay JPY 4,300 per tonne short and be deemed to hold the allowance | Release from an 85 Mt market stability reserve inside the cap |
| Lower price tool | GX Promotion Organization buys allowances when prices fall below JPY 1,700 | Auction supply held back when the auction price drops below a set level |
| Trigger basis | Proposed: monthly average beyond the bound for 3 months in a row | Auction price outside a pre-set range |
| Penalty for shortfall | JPY 4,730 per tonne (ceiling x 1.1) | Up to 3 times the year's average market price |

Japan's trigger is a September 2026 secretariat proposal, not a final rule.

## What is next

- 2027-03-31: METI must fix the FY2027 ceiling and floor before the fiscal year starts on 1 April 2027.
- 2028-01-31: First surrender deadline, covering FY2026 emissions.

## Sources

- [上下限価格に係る措置について（第9回排出量取引制度小委員会 事務局資料）](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/009_03_00.pdf) (METI, checked 2026-11-12)
- [排出量取引制度小委員会（開催一覧）](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/index.html) (METI, checked 2026-11-12)
- [参考上限取引価格及び調整基準取引価格を定める告示（2026-03-30）](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) (METI, checked 2026-11-12)
- [排出量取引制度リーフレット（2026年度版）](https://www.meti.go.jp/policy/energy_environment/global_warming/ets__leaflet.pdf) (METI, checked 2026-11-12)
- [온실가스 배출권 시장 안정성 강화하고 세부제도 합리적으로 개선한다 (2026.4.21)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156756850) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)
- [2035 NDC and Phase 4 allocation plan (press release, 2025.11.11)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)

Data book: https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/


---

# Korea's provisional 2025 greenhouse gas emissions fall 0.9% to 685.71 Mt

_Published 2026-11-12 · Event 2026-09-20 · Policy and institutions · S. Korea · https://asiacarbondesk.com/news/20261112-kr-2025-provisional-emissions/_

Korea's Ministry of Climate, Energy and Environment put total 2025 greenhouse gas emissions at 685.71 Mt in a provisional estimate released on 20 September 2026.
That is 6.1 Mt, or 0.9%, below the provisional 2024 total, while net emissions were 11.4% below their 2018 level.
Net emissions rose 0.5% to 654.70 Mt because wildfires cut the land sector's removals by 22.8%.

## What happened

The ministry's Greenhouse Gas Inventory and Research Center released its provisional estimate of 2025 national emissions, calculated under the 2006 IPCC Guidelines that Korea now uses for reporting under the Paris Agreement. The release was embargoed to 20 September 2026. Total emissions were 685.71 Mt CO2e, down 6.1 Mt from 2024.
By sector, power generation emitted 220.43 Mt, up 0.2%. Total generation was flat while renewable output rose 8.5%, but nuclear output fell 2.2% because of longer maintenance outages and coal-fired generation rose 2.2%. Industry emitted 242.93 Mt, down 2.1%, as output fell in steel, petrochemicals and cement; semiconductor emissions rose only 1.3% despite higher production. Transport fell 2.9% to 94.59 Mt as diesel use dropped 6.1%. Buildings rose 3.3% to 45.00 Mt on higher heating demand, and fluorinated gases from refrigerants rose 3.9% to 36.28 Mt.
Removals by forests and land fell 22.8% to 31.03 Mt, mainly because the March 2025 wildfires in North Gyeongsang added 8.3 Mt of emissions from burning biomass. Net emissions therefore rose 3.1 Mt to 654.70 Mt. Against 2018, net emissions were 84 Mt, or 11.4%, lower. The ministry calculates that a further 149 Mt must be cut by 2030 to meet the 2030 target, and a further 127 Mt to 182 Mt between 2031 and 2035 to meet the 2035 target range.

## Background

The figures arrive in the first year of Phase 4 of the Korea Emissions Trading Scheme. Phase 4 runs from 2026 to 2030 with a cap of 2,537.30 Mt, an annual average of 510 Mt, against 610 Mt a year in Phase 3. The cabinet adopted the 2035 target of a 53% to 61% cut from 2018 net emissions of 742.3 Mt on 11 November 2025, together with the Phase 4 allocation plan.
The same release links the ETS to the trend. It credits a lower cap and a stepwise rise in paid allocation for lifting allowance prices from about KRW 10,000 on average in 2025 to the KRW 30,000 range by 20 August 2026. It also lists new laws passed in 2026, including a revised Framework Act on Carbon Neutrality that sets ranges for the 2040 and 2045 targets.

## Korea's emissions against its ETS caps, with Japan for scale

| Measure | Value (Mt CO2e) | Basis |
|---|---|---|
| Korea total emissions, 2025 (provisional) | 685.71 | National inventory, 2006 IPCC Guidelines |
| Korea 2018 net emissions (NDC base year) | 742.3 | Base for the 2035 target |
| K-ETS Phase 3 cap, annual average | 610 | Phase 3, five years |
| K-ETS Phase 4 cap, annual average | 510 | Phase 4, five years |
| Japan net emissions, FY2024 | 994 | National inventory |
| Japan GX-ETS coverage (indicative) | about 600 | Nearly 60% of national emissions |

Japan's GX-ETS coverage is an indicative calculation in the data book (nearly 60% of about 994 Mt).

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [2025년도 국가 온실가스 잠정배출량 6억 8,571만톤 (보도자료, 2026.9.20, hwpx 첨부)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156782809) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)
- [2035 NDC and Phase 4 allocation plan (press release, 2025.11.11)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)
- [제4차 계획기간 배출권 할당 완료 (보도자료, 2025.12.28)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156737066) (Ministry of Climate, Energy and Environment (korea.kr), checked 2026-11-12)
- [2024年度温室効果ガス排出量及び吸収量について（概要版）](https://www.env.go.jp/content/000394131.pdf) (Ministry of the Environment, Japan, checked 2026-11-12)

Data book: https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/japan-gx-ets/


---

# India's energy efficiency bureau shortlists two more applicants to verify carbon credits under the CCTS

_Published 2026-11-12 · Event 2026-09-18 · Credits and projects · India · https://asiacarbondesk.com/news/20261112-in-acv-verifier-applicants/_

India's Bureau of Energy Efficiency on 18 September 2026 sought public comments on two applicants for accreditation as Accredited Carbon Verification agencies.
The shortlisted applicants are REC Power Development and Consultancy Limited and TUV Rheinland (India) Pvt. Ltd.
Comments were due within 15 days, by 3 October 2026, and the bureau stressed that neither firm is yet accredited.

## What happened

The Bureau of Energy Efficiency (BEE), administrator of India's Carbon Credit Trading Scheme (CCTS), issued a letter dated 18 September 2026 asking stakeholders for comments and information on applicants for Accredited Carbon Verification (ACV) agency status. ACV agencies carry out validation and verification work under the Indian Carbon Market.
The letter names two applicants shortlisted for comment: REC Power Development and Consultancy Limited and TUV Rheinland (India) Pvt. Ltd. It cites clauses 7.2.4 and 7.2.5 of the review-of-application section in BEE's Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencies. Responses were to be sent by email within 15 days, that is by 3 October 2026, using the format in the letter's second annexure; the first annexure gives details of the two firms.
BEE states in the letter that the shortlisted agencies should not be treated as accredited and may not claim to be. The notice therefore marks a step in the review, not a final accreditation decision.
BEE's carbon market web page lists 12 notices seeking comments on ACV applicants, including this one. Earlier rounds carry dates such as 24 February, 25 March, 8 April and 13 May 2026, with further notices in May, July and August.

## Background

Verification sits at the centre of the CCTS. Obligated entities report direct and indirect emissions, covering Scope 1 and 2, and the compliance procedure with its monitoring, reporting and verification framework was published in July 2024. Targets are set as tonnes of CO2e per tonne of product, and certificates are calculated from the gap between target and achieved intensity multiplied by output, one certificate per tonne.
The scheme now covers obligated entities in a growing list of sectors, and a draft adds 255 iron and steel entities. Its institutions are split three ways: BEE as administrator, Grid Controller of India as registry and the Central Electricity Regulatory Commission as trading regulator. Alongside the compliance market there is an offset mechanism with nine approved methodologies and more than 40 registered entities submitting projects as of March 2026; verified outcomes there also depend on accredited verifiers.

## Third-party verification in selected Asian carbon pricing schemes

| Scheme | Verification arrangement | Status or scale |
|---|---|---|
| India CCTS | Accredited Carbon Verification agencies approved by BEE | 2 applicants shortlisted for comment on 18 Sep 2026; MRV framework since July 2024 |
| Japan GX-ETS | Registered verification bodies; registration valid 5 years | Registration opened 5 Jan 2026; 18 bodies listed |
| Singapore carbon tax | Third-party verified emissions report for taxable facilities | Required with monitoring plan and tax payment |
| Viet Nam pilot ETS | Third-party-verified inventory results from allocated facilities | Due by 1 December each year, from 2027 |

Japan's count is the number of names listed on the METI page as of its 4 November 2026 update.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Seeking stakeholder comments on applicant for Accredited Carbon Verification Agency under CCTS (No. 45/02/NMEEE/Energy Efficiency/2025-CCTS, 18 September 2026)](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-a981db1438253164_1789750069.pdf) (Bureau of Energy Efficiency, checked 2026-11-12)
- [Carbon Market (CCTS documents and notices)](https://beeindia.gov.in/show_content.php?lang=1&level=1&ls_id=189&lid=294) (Bureau of Energy Efficiency, checked 2026-11-12)
- [Detailed Procedure for Compliance Mechanism under CCTS](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) (Bureau of Energy Efficiency, checked 2026-11-12)
- [Annual Report 2025-26](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) (Ministry of Power, checked 2026-11-12)

Data book: https://asiacarbondesk.com/india-ccts/


---

# Hong Kong's first Five-Year Plan makes carbon intensity and a 30% zero-carbon power share binding 2030 indicators

_Published 2026-11-12 · Event 2026-09-16 · Policy and institutions · Hong Kong · https://asiacarbondesk.com/news/20261112-hk-five-year-plan-carbon-targets/_

Hong Kong published its First Five-Year Plan for 2026-2030 on 16 September 2026, with 105 indicators, 22 of them major indicators.
Two binding indicators target carbon: carbon intensity, already 12.3% below the 2020 level in 2024, and the zero-carbon share of power generation, set to go from 25% in 2024 to 30% in 2030.
The plan also says Hong Kong will help the country implement Article 6 of the Paris Agreement and will build a carbon trading hub.

## What happened

The Government released the plan on 16 September 2026, the same day as the 2026 Policy Address. Its major-indicator table splits targets into anticipatory and binding ones. Four of the plan's five binding indicators are environmental, and all four environmental indicators are binding: carbon emission per unit of GDP (carbon intensity), the zero-carbon share of the electricity fuel mix, average PM2.5 concentration (15 now, below 14 in 2030), and compliance with surface water quality objectives (above 88%, rising to above 90%). For carbon intensity the table gives 12.3% as the 2024 reduction against 2020 and lists 32.5 as the cumulative cut, in percent, for 2030 measured from the 2024 level.
Chapter 25 adds longer-range aims. Coal is to stop being used for daily power generation by 2035. The plan also puts zero-carbon energy at about 60% to 70% of the fuel mix, without giving a year for that share. Commercial buildings are to cut electricity use by 30% to 40% and homes by 20% to 30% from 2015 levels by 2050, with half of those cuts by 2035. Table 38 sets 4,000 fast chargers by 2030 and an end to new registrations of fuel-propelled private cars, hybrids included, in 2035 or earlier.
On markets, paragraph 5.66 commits to a carbon trading hub, lifecycle emission values for green and low-carbon hydrogen, and support for the country in applying Paris Agreement Article 6 on credits. The finance chapter lists advancing an international carbon market under Finance plus Green Development. On 25 September 2026 the Council for Carbon Neutrality and Sustainable Development stated that it unanimously supported the plan's strategies and initiatives.

## Background

The plan sits under the Climate Action Plan 2050, announced on 8 October 2021, which aims to halve total emissions from the 2005 level before 2035 and reach carbon neutrality before 2050, with about HK$240 billion of climate spending over 15 to 20 years. An earlier plan from 2017 targeted a 65% to 70% cut in carbon intensity by 2030 against 2005. The 2021 plan set a renewable share of 7.5% to 10% in the power mix by 2035.
Hong Kong's inventory shows total emissions of about 33.2 million tCO2e in 2024, 3.6% lower than 2023 and about 27% below the 2014 peak; electricity generation made up 61%. Measured against 42,800 ktCO2e in 2005, 2024 was roughly 22% lower, while the 2035 target implies about 21,400 ktCO2e. Per capita emissions were 4.41 tonnes. A review of the Climate Action Plan was expected to be released in 2026.

## Headline emission targets across Asia-Pacific

| Economy | Target | Baseline |
|---|---|---|
| Hong Kong | Halve emissions before 2035 (-50%) | 2005 level |
| Australia | 43% below by 2030; net zero by 2050 | 2005 level |
| India | Cut emissions intensity of GDP by 45% by 2030 | 2005 level |
| Korea (2035 NDC) | 53% to 61% below by 2035 | 2018 net emissions (742.3 Mt) |
| China ETS (2026-2030) | Unit-product emissions in covered sectors down about 3% | Five-year target for covered sectors |

Targets differ in type (absolute, intensity, sector-level) and are not directly comparable. Hong Kong's roughly 22% fall from 2005 to 2024 is calculated from the inventory (33,200 / 42,800 - 1).

## What is next

- 2027: green and low-carbon hydrogen certification system to be set up (Five-Year Plan, Table 38).
- 2030: binding indicator of a 30% zero-carbon share in the fuel mix for electricity generation.

## Sources

- [Full text of the First Five-Year Plan for Economic and Social Development of the HKSAR (2026-2030) (1) (16 Sep 2026)](https://www.info.gov.hk/gia/general/202609/16/P2026091600143.htm) (Hong Kong SAR Government, checked 2026-11-12)
- [Full text of the First Five-Year Plan (2026-2030) (7), Chapter 25 (16 Sep 2026)](https://www.info.gov.hk/gia/general/202609/16/P2026091600211.htm) (Hong Kong SAR Government, checked 2026-11-12)
- [Full text of the First Five-Year Plan (2026-2030) (2) (16 Sep 2026)](https://www.info.gov.hk/gia/general/202609/16/P2026091600161.htm) (Hong Kong SAR Government, checked 2026-11-12)
- [Government announces the First Five-Year Plan (2026-2030) (16 Sep 2026)](https://www.info.gov.hk/gia/general/202609/16/P2026091600338.htm) (Hong Kong SAR Government, checked 2026-11-12)
- [Council for Carbon Neutrality and Sustainable Development appreciates HKSAR Government's commitment to carbon neutrality (25 Sep 2026)](https://www.info.gov.hk/gia/general/202609/25/P2026092500517.htm) (Hong Kong SAR Government, checked 2026-11-12)
- [Government announces Hong Kong's Climate Action Plan 2050 (8 Oct 2021)](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) (HKSAR Government, Environment Bureau, checked 2026-11-12)
- [Greenhouse Gas Emissions and Carbon Intensity in Hong Kong, data table 1990-2024 (updated Jan 2026)](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) (Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website, checked 2026-11-12)
- [Safeguard Mechanism](https://cer.gov.au/schemes/safeguard-mechanism) (Clean Energy Regulator, checked 2026-11-12)
- [Ministry of Power & MoEFCC to develop Carbon Credit Trading Scheme for Decarbonisation (11 May 2023)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=1923458&reg=3&lang=2) (Press Information Bureau (Ministry of Power), checked 2026-11-12)
- [2035 국가 온실가스 감축목표 및 제4기 배출권거래제 할당계획, 국무회의서 확정 (보도자료, 2025.11.11, 붙임 포함 PDF)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156727601) (Ministry of Climate, Energy and Environment (MCEE), published on korea.kr, checked 2026-11-12)
- [全国碳市场发展报告（2026） (September 2026, PDF)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [Hong Kong greenhouse gas emission inventory for 2024 released (22 Jan 2026)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) (Environment and Ecology Bureau (EEB), checked 2026-11-12)
- [LCQ20: Carbon emission reduction (18 Jun 2025)](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) (HKSAR Government, Secretary for Environment and Ecology, checked 2026-11-12)

Data book: https://asiacarbondesk.com/hong-kong-core-climate/, https://asiacarbondesk.com/australia-safeguard-mechanism/, https://asiacarbondesk.com/india-ccts/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/china-national-ets/


---

# China's national ETS closed August 2026 at CNY 97.90 per tonne, up 31.18% on end-2025, MEE report shows

_Published 2026-11-12 · Event 2026-09-15 · Markets and prices · China · https://asiacarbondesk.com/news/20261112-cn-ets-report-2026-trading/_

China's Ministry of Ecology and Environment released its 2026 national carbon market report on 15 September 2026.
Allowance trading in January-August 2026 rose 46.53% in volume and 67.64% in value from a year earlier, and the end-August close was CNY 97.90 per tonne.
Cumulative allowance trading reached 961 Mt worth CNY 65.699 billion by the end of August 2026.

## What happened

The Ministry of Ecology and Environment (MEE) published the National Carbon Market Development Report (2026) at a carbon market conference on 15 September 2026 and posted Chinese and English versions on its website on 20 September. The report updates trading, price and compliance data for the national ETS and the CCER voluntary market to the end of August 2026.
On trading, the report puts 2025 allowance volume at 235 Mt, up 24.36% on 2024 and the highest annual figure since the market opened, with value of CNY 14.630 billion. Trading was spread more evenly across the year: 98.09 Mt changed hands in the first three quarters of 2025, or 42% of the annual total, 21 percentage points more than a year earlier. Volume and value then rose 46.53% and 67.64% year on year in January-August 2026.
On prices, the report describes a fall after covered entities sold surplus allowances in 2025, with closes ranging between CNY 57 and CNY 98 per tonne, followed by a recovery in the fourth quarter. The December 2025 average traded price was CNY 65.43, above the full-year average of CNY 62.36. By the end of August 2026 the composite close stood at CNY 97.90, 31.18% above the end-2025 level.
The report also reports results for the one-way auction method introduced in July 2025: 9 sessions by the end of August 2026, 0.338 Mt traded, CNY 19.7053 million in value and 29 participating companies. For compliance with 2024 emissions, 8.194 Gt of allowances were due and about 99.99% were surrendered; one of 2,087 power entities missed full surrender on time, and all 1,291 steel, cement and aluminium entities complied. In the CCER market, 41 projects and 24.2335 Mt of credits had been registered by the end of August 2026, with an average traded price of CNY 86.51 per tonne.

## Background

The ETS opened for online trading on 16 July 2021 with the power sector only. The first compliance cycle, to the end of 2021, traded 179 Mt worth CNY 7.661 billion and closed at CNY 54.22 per tonne. The MEE's 2024 report puts trading in the second cycle, from January 2022 to December 2023, at 263 Mt worth CNY 17.258 billion, an average of about CNY 65.62 per tonne by our calculation, with the end-2023 close at CNY 79.42. MEE year-end notices then record 189 Mt traded in 2024 and closes of CNY 97.49 at the end of 2024 and CNY 74.63 at the end of 2025.
Cumulative allowance trading, as reported by the MEE, rose from 442 Mt at the end of 2023 to 630 Mt a year later, 865 Mt at the end of 2025 and 961 Mt by the end of August 2026.
Coverage expanded in 2025 when steel, cement and aluminium joined, lifting the number of covered entities to 3,378. For 2026 the MEE counts 3,680 entities and about 8.3 GtCO2, more than 65% of national emissions. Allocation remains free and intensity-based, so supply moves with output rather than with a fixed cap.

## Latest government-published carbon price points in Asia (local currency, not converted)

| Scheme | Price point | Date | Type |
|---|---|---|---|
| China national ETS | CNY 97.90/t | End-August 2026 | Composite close reported by the MEE |
| Korea K-ETS | KRW 30,000 range/t | As of 20 August 2026 (release of 20 September 2026) | Price level stated by the climate ministry (MCEE) |
| Japan GX-ETS | JPY 1,700-4,300/t | FY2026 | Government floor and ceiling reference prices |
| Singapore carbon tax | S$45/tCO2e | From emissions year 2026 | Fixed tax rate |
| Taiwan carbon fee | NT$300/tCO2e | From 1 January 2025 | General fee rate |

All figures come from government publications and are shown in each scheme's own currency without conversion. The Korean figure is a ministry description of the market level, and the Japanese figures are policy reference prices, not traded prices.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [生态环境部发布《全国碳市场发展报告（2026）》 (20 Sep 2026)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/t20260920_1166890.shtml) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [全国碳市场发展报告（2026） (Chinese PDF)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [2025年全国碳市场平稳有序运行 圆满完成年度建设工作](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202601/t20260101_1139528.shtml) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [2024年全国碳排放权交易市场配额交易及清缴工作顺利结束](https://www.mee.gov.cn/ywgz/ydqhbh/syqhbh/202501/t20250105_1099975.shtml) (Ministry of Ecology and Environment (MEE), checked 2026-11-12)
- [全国碳市场发展报告（2024） (July 2024, PDF)](https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528848347594.pdf) (Ministry of Ecology and Environment (MEE), checked 2026-11-13)
- [全国碳市场第一个履约周期顺利结束 (31 Dec 2021)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202112/t20211231_965906.shtml) (Ministry of Ecology and Environment (MEE), checked 2026-11-13)
- [2025년도 국가 온실가스 잠정배출량 6억 8,571만톤 (press release)](https://www.korea.kr/briefing/pressReleaseView.do?newsId=156782809) (Ministry of Climate, Energy and Environment (MCEE), checked 2026-11-13)
- [環境部召開碳費費率審議會 (2 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) (Ministry of Environment (MOENV), checked 2026-11-13)

Data book: https://asiacarbondesk.com/china-national-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/taiwan-carbon-fee/


---

# Singapore lets unused 2025 carbon-credit quota roll into 2026, scaled by 25/45

_Published 2026-11-12 · Event 2026-08-19 · Credits and projects · Singapore · https://asiacarbondesk.com/news/20261112-sg-icc-rollover/_

Taxable facilities in Singapore may carry unused 2025 international carbon credit quota into emissions year 2026.
The carried amount is multiplied by 25/45, the ratio of the 2025 and 2026 tax rates, so 4,000 unused credits become 2,222.
Quota already carried from 2024 into 2025 expires and cannot move forward again.

## What happened

The National Environment Agency (NEA) sets out the roll-over rule on its carbon tax page, last updated on 19 August 2026. Facilities that do not use their full allowance of international carbon credits (ICCs) for emissions year 2025 can add the unused part to their 2026 allowance.
Because the tax rose from S$25 to S$45 per tonne at the start of 2026, NEA applies a credit conversion factor of 25/45. The formula is (A minus B) times 25/45, rounded down, where A is the 2025 limit and B is the number of ICCs actually surrendered for 2025.
NEA gives a worked example. A facility emitting 100,000 tonnes a year may use up to 5,000 ICCs. If it uses 1,000 for 2025, the remaining 4,000 convert to 2,222 for 2026, giving a 2026 ceiling of 7,222 credits (our calculation: 5,000 plus 2,222; NEA does not state the total). The page also states that quota carried from 2024 into 2025 lapses.
NEA links the measure to slow credit supply. It notes that 11 Implementation Agreements had been signed when the page was updated, that application calls were open in Bhutan, Ghana, Peru, Rwanda and Thailand, and that projects can take up to four years to produce credits.

## Background

The ICC framework started on 1 January 2024, when the tax rose to S$25. From that date taxable facilities could offset up to 5% of taxable emissions with eligible credits. Credits must come from reductions or removals from 2021 to 2030 inclusive, and only from countries that have an Implementation Agreement with Singapore.
An earlier roll-over let facilities move unused 2024 quota, up to 5% of 2024 taxable emissions, into 2025. That carried quota now expires. The tax began at S$5 per tonne in 2019; the 2026 rise is the first since offsets were allowed in 2024. Scaling by 25/45 keeps the tax value of a carried quota roughly the same: 4,000 credits at S$25 and 2,222 credits at S$45 each cover about S$100,000 of tax.
Supply under the agreements is still thin. Singapore's Carbon Markets Cooperation site lists 12 countries with which Singapore has substantively concluded negotiations or signed Implementation Agreements, nine of them in force (page updated 5 November 2026), while its project register showed no registered projects as of 2 November 2026.

## Offset limits in Asian compliance schemes

| Scheme | Offset limit | Eligible units |
|---|---|---|
| Singapore carbon tax | Up to 5% of taxable emissions | ICCs from Implementation Agreement host countries |
| Japan GX-ETS | 10% of each year's emissions | J-Credits and JCM credits |
| Korea K-ETS | Up to 10% of a company's surrender obligation (legal ceiling) | Domestic offset credits |
| China national ETS | Up to 5% of allowances due | CCER |

Korea's exact limit for each period is set in its allocation plan.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Carbon Tax (Roll over of Unutilised ICC Offset Limit for Emissions Year 2025)](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency, checked 2026-11-12)
- [FAQ - General Information](https://www.carbonmarkets-cooperation.gov.sg/frequently-asked-questions/general-information/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [Eligibility Criteria](https://www.carbonmarkets-cooperation.gov.sg/environmental-integrity/eligibility-criteria/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [Overall Project Register](https://www.carbonmarkets-cooperation.gov.sg/project-register/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [Singapore's Article 6 Cooperation](https://www.carbonmarkets-cooperation.gov.sg/our-art6-cooperation/) (Singapore's Carbon Markets Cooperation, checked 2026-11-12)
- [ETS Subcommittee Interim Report](https://www.meti.go.jp/shingikai/sankoshin/sangyo_gijutsu/emissions_trading/pdf/006_06_00.pdf) (Ministry of Economy, Trade and Industry (Japan), checked 2026-11-12)
- [Enforcement Decree of the Act on the Allocation and Trading of Greenhouse Gas Emission Permits](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률시행령) (Korea Ministry of Government Legislation, checked 2026-11-12)
- [Measures for the Administration of Carbon Emissions Trading (MEE Order No. 19)](https://www.mee.gov.cn/gzk/gz/202112/P020211213372253773271.pdf) (Ministry of Ecology and Environment (China), checked 2026-11-12)

Data book: https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/china-national-ets/


---

# Singapore's carbon tax is S$45 a tonne for 2026 and 2027, up from S$25

_Published 2026-11-12 · Event 2026-01-01 · Policy and institutions · Singapore · https://asiacarbondesk.com/news/20261112-sg-tax-45/_

Singapore's carbon tax has been S$45 per tonne of CO2e since 1 January 2026, up 80% from S$25 in 2024 and 2025.
The rate applies to about 50 facilities that each emit at least 25,000 tCO2e a year, covering around 70% of national emissions.
The Government's stated range for 2030 remains S$50 to S$80, and the path from 2028 is under review.

## What happened

The National Environment Agency (NEA) lists the carbon tax at S$45 per tonne of CO2e for emissions years 2026 and 2027. The rate took effect on 1 January 2026, so the first payments at the new level fall due in 2027, when facilities settle tax on their 2026 emissions. Under section 17 of the Carbon Pricing Act, tax assessed for an emissions year is due by 30 September of the following year, or 30 days after the notice of assessment is served if that is later.
The tax is charged on direct emissions from facilities whose annual emissions reach 25,000 tCO2e. These are mainly in manufacturing, power, waste and water. The National Climate Change Secretariat (NCCS) puts the number of taxable facilities at about 50 and the share of national greenhouse gas emissions they cover at around 70%. Adding fuel excise duties on transport fuels, the share priced in some form is about 80%.
Under the same section, facilities pay by surrendering fixed-price carbon credits equal in value to the tax charged. Since 1 January 2024 they may also use eligible international carbon credits to cover up to 5% of their taxable emissions.

## Background

Singapore introduced the tax on 1 January 2019 at S$5 per tonne. It was the first carbon price anywhere in Southeast Asia. The legal basis is the Carbon Pricing Act 2018.
Budget 2022, announced on 18 February 2022, set the current path: S$25 for 2024 and 2025, S$45 for 2026 and 2027, and S$50 to S$80 by 2030. Parliament passed the amending law on 8 November 2022 and it took effect on 1 January 2024. The 2024 rate was five times the starting rate, and the 2026 step adds a further 80%.
In a parliamentary reply dated 5 August 2026, the Government stated that the trajectory for 2028 and beyond is under review and that future rates will be announced in advance. No rate for 2028 has been published. NCCS also sets out that an increase of S$5 per tonne adds roughly 1% to electricity tariffs, and that the S$45 rate adds about S$3 a month for an average four-room public housing flat.

## Carbon price levels and coverage in five Asian compliance schemes

| Scheme | Price reference | Who is covered | Share of national emissions |
|---|---|---|---|
| Singapore carbon tax | S$45/tCO2e (2026-2027) | Facilities emitting 25,000 tCO2e or more | Around 70% |
| Taiwan carbon fee | General rate NT$300/tCO2e (from 2025) | Plants in power, gas supply and manufacturing emitting 25,000 tCO2e or more | About 54% (pre-launch estimate) |
| Japan GX-ETS | Ceiling JPY 4,300, floor JPY 1,700 per t (FY2026) | Companies emitting 100,000 t CO2 or more | Nearly 60% |
| Korea K-ETS | No set price; shortfall penalty up to 3 times the year's average market price | Companies averaging 125,000 tCO2e, or sites of 25,000 tCO2e | Not stated in the sources used |
| China national ETS | Close CNY 97.90/t (end-August 2026, as published by the Ministry of Ecology and Environment) | Entities emitting 26,000 tCO2e or more | Over 65% |

Prices are in local currency and are not converted. Singapore and Taiwan set fixed rates by law; Japan's figures are regulatory price bounds; Korea's rule is a legal penalty formula; China's is a market price as published by the national ministry.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Carbon Tax](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency, checked 2026-11-12)
- [Carbon Tax (Mitigation Efforts)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) (National Climate Change Secretariat, checked 2026-11-12)
- [Parliamentary Reply by DPM Gan on Singapore's Carbon Tax Trajectory from 2028 (5 August 2026)](https://www.nccs.gov.sg/media/parliamentary-reply-by-dpm-gan-on-singapore-s-carbon-tax-trajectory-from-2028/) (National Climate Change Secretariat, checked 2026-11-12)
- [Carbon Pricing Act 2018](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) (Singapore Statutes Online, checked 2026-11-12)
- [Budget Statement FY2022](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) (Ministry of Finance, checked 2026-11-12)
- [Reference ceiling and adjustment reference prices (METI Notice No. 27, 2026-03-30)](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) (Ministry of Economy, Trade and Industry (Japan), checked 2026-11-12)
- [National Carbon Market Development Report (2026)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (China), checked 2026-11-12)
- [Act on the Allocation and Trading of Greenhouse Gas Emission Permits](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) (Korea Ministry of Government Legislation (National Law Information Center), checked 2026-11-13)
- [MOENV carbon fee rate review meeting (2 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) (Ministry of Environment (Taiwan), checked 2026-11-13)
- [Regulations Governing the Collection of Carbon Fees](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-13)
- [Carbon Fee section](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) (Climate Change Administration, Ministry of Environment (Taiwan), checked 2026-11-13)

Data book: https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/taiwan-carbon-fee/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/china-national-ets/