Shanghai Municipal People's Government General Office issues "Shanghai Carbon Market Comprehensive Deepening Reform Action Plan".

The General Office of the People's Government of Shanghai Municipality has issued the "Action Plan for Comprehensive Deepening Reform of Shanghai Carbon Market", which proposes to establish and improve a quota total management system. It aims to reasonably determine the total amount of carbon emission quotas, establish and improve a reserve quota regulation mechanism. A carbon emission quota distribution system connected with the dual control system of total emissions and intensity will be established, with quota total control to be implemented as a pilot in industries with relatively stable carbon emissions, in order to reserve development space for strategic emerging industries and future industries. The proportion of paid distribution will be steadily and orderly increased. The constrained incentive role of the paid quota allocation mechanism will be utilized, with different paid distribution proportions set for each industry according to the pace of progress towards Shanghai's carbon peak and carbon neutrality goals. Incentive adjustment factors will be set based on changes in carbon emissions or intensity between years among regulated units, the effectiveness of coordinated pollution reduction and carbon reduction measures, and the development of energy or carbon measurement systems. By 2027, the proportion of paid distribution of quotas for regulated units will be controlled to within 8%; by 2030, the proportion of paid distribution of quotas to the total quota amount will be further increased.