Act on Addressing Climate Change (Draft Proposal)

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Chapter III Measures of climate change deceleration

Section I Comprehensive Measures

Article 29 (General Requirements) Deceleration measures on climate change shall be scientific, economic, fair, reasonable, and in line with relevant domestic requirements of reporting, monitoring, verification and tracking. The people's governments at various levels shall evaluate decelerating measures on climate change and their effects regularly and take improvement measures. Emission units shall regularly evaluate and report measures and effects of greenhouse gas emission control and reduction, and take corresponding measures for improvement.

Article 30 (Energy Structure) The nation shall take measures to update source structure through policy guidance, financial support and R & D, encourage development and use of hydro, wind, solar, geothermal, ocean energy, biomass and other clean affordable new energy, and reduce the use of chemical energy.

Article 31 (industrial structure) The nation shall take measures to optimize the industrial structure, strictly control greenhouse gas emissions of the various types of industrial development and increase carbon sinks. The nation shall take measures to develop low-carbon industries which can conserve energy, reduce greenhouse gas emissions and increase carbon sinks, strengthen traditional industry technical reformation and upgrading, cultivate and strengthen the strategic and newly emerging industries, and accelerate the development of service industries. The development and reform department under the State Council shall publish low-carbon industries catalog together with The State Council , finance, science and technology, tax, credit administrative department, formulate incentive policies and support low-carbon industrial development.

Article 32 (to Encourage Low-carbon Production and Elimination Backward Production Capacity) The development and reform department under the State Council together with the industry, science and technology, environmental protection administrative departments shall regularly publish oriented catalog of low-carbon production technology equipment, encourage enterprises to renewable energy structure, and improve technology of low-carbon exploitation. The nation shall speed up eliminating outdated production capacity, and institute a mandatory system for eliminating outdated techniques, processes, and equipments which do not meet the requirements of energy conservation. The nation shall publish enterprises and institutions with outdated technology, equipment and processes and order them to phase out. Specific directory shall be published by the development and reform department under the State Council together with industry, science and technology, environmental protection administrative departments. The development and reform department under the State Council together with the administrative departments of industry, science and technology, environmental protection, business shall develop mandatory national standards of energy consumption limit of high-consuming products, energy efficiency of major terminal energy-consuming products, and regularly publish a high energy-consuming products directory and encourage the user to select low-carbon products.

Article 33 (Technological Innovation and Energy Conservation) The nation shall encourage research and development technology and equipment of energy conservation and greenhouse gas emissions reduction. The development and reform department under the State Council together with the administrative departments of industry and construction shall develop energy extraction and process control standards and enhance the transformation of the power system to reduce energy loss in the process of mining, processing and transportation. State shall speed up central heating and cooling system development to reduce energy loss in the transportation process.

The nation promotes energy conservation in focus areas, key industries and key enterprises, encourage and support enterprises to carry out the technological transformation of the energy conservation, reducing energy consumption of per unit of output and consumption of per unit product.

Article 34 (Energy Conservation and Emission Reduction Responsibility Letters) The nation shall develop energy conservation and emission reduction targets and programs. The people's governments at or above the county level shall sign the letters of responsibility of the energy conservation and emission reduction top-down step by step to require energy conservation and emission reduction of lower-level people's governments. The people's governments at a higher level shall regularly assess the works of the people's government at a lower level on the completion of energy conservation targets and implementation of greenhouse gas emission reduction program. According to national greenhouse gas emissions recourses census data and greenhouse gas reduction goals, the State Council shall determine the nationwide total emissions allowances of key emissions units and allowances shall be allocated in accordance with the key industries and administrative divisions. Local people's governments at or above the county level shall resolve and assign allowances obtained within their respective administrative regions top-down step by step to the key industries and emission units.

Article 35 (Low-carbon Pilot Region) The nation shall promote low-carbon pilot projects in selected provinces and cities. Pilot regions shall formulate implementation schemes and promulgate their respective goals for energy efficiency per unit of GDP, annual and long-term greenhouse gas emission reduction, and vigorously promote the transformation of the local economic development mode, clear key areas of policy measures and steps, take major actions to advance the construction of key low-carbon development projects, and vigorously develop low-carbon industries to promote green and low-carbon development.

The development and reform department under the State Council shall develop detailed regulation together with The State Council , environmental protection, construction, and civil affairs administrative department.

Article 36 (Regional Compensation and Subsidies) The nation shall build up regional climate change addressing compensation mechanism to provide financial compensation to regions like Tibetan Plateau which have a special climate protection significance for ecological protection and construction, and increasing carbon sinks. The nation shall build up climate change addressing regional and industry subsidies mechanism to provide subsidies to regions and industries suffered the harm or the threat of climate change. The financial subsidies and regional and industrial compensation fund addressing climate change shall granted by government climate change addressing funds. The specific method shall developed by The State Council.

Section 2 Detailed Regulations

Article 37 (Requirements of Life and Work) The nation shall advocate green, low carbon life and work style, encourage the use of low-power products and services, and implement measurable home and carbon consumption step by step.

Article 38 (Emissions Allowances) Key emissions units shall emit greenhouse gas according allowances and the greenhouse gas emissions shall not exceed the allowances. Local people's governments at all levels shall carry out emission allowances initial distribution within the existing key emissions units in accordance with national and local greenhouse gas reduction targets. The initial distribution of allowances shall be consulted with the industry average emission intensity and level in fair and equitable manner.

Article 39 (Emission Allowances Exemption) Except for the greenhouse gases belong to air pollutants, The nation shall provide key units of emission of greenhouse gas of an exemption certified free emission allowances. Certified exemption allowances shall refer to the same industry average emissions intensity degree and level.

The detailed regulation shall be formulated by the development and reform department under the State Council.

Article 40 (Access to Emissions Allowances) New construction and expansion or reconstruction of key projects which need to emit greenhouse gases in excess of the certified exemption from emission allowances, the existing key emissions units of greenhouse gas emissions more than the certified exemption from emission allowances of, shall obtain emission allowances through internal bubble policy in enterprises and market transactions, or apply to local development and reform or environmental protection administrative departments for emission allowances in accordance with the nature of the greenhouse gases. New construction, renovation, expansion of the key projects of energy efficiency does not meet the low-carbon standard can not apply for allowances for greenhouse gas emissions by internal bubble policy in enterprises and market transactions measures. The existing emission units shall take energy conservation measures if not meet energy efficiency low-carbon standard.

Article 41 (Transportation Measures) The nation shall accelerate optimizing and low-carbon transformation of the existing transportation system, vigorously develop clean energy vehicles, public transport and promote low-carbon travel. Units of state organs, institutions and other units relying on financial allocations shall take measures with combination of restrictions and subsidies to strengthen the vehicle management, guide the staff to give priority to public transport, reduce the use of private transport.

The local people's governments shall allocate certified exemption emissions allowances to transport enterprises of their own administrative area. Transport enterprises without enough certified exemption emission allowances shall obtain allowances by internal bubble policy in enterprises and market transactions measures or applied for compensation of emission allowances according to nature of the greenhouse gases.

Article 42 (Transport Measures) Transportation and other administrative departments under the State Council shall be responsible for developing and improving land, water and air transport temperature control standards, energy efficiency standards, fuel standards and greenhouse gas emission reduction standards to reduce energy consumption and greenhouse gas emissions. Motor vehicle manufacturing enterprise shall manufacture and maintenance transport in accordance with the standards. Motorized transport shall accept type approval on the control of greenhouse gas emissions before in the production line by the provincial level quality and technology supervision departments.

Article 43 (Construction Measures) Construction administrative department under the State Council shall be responsible for the development of the building temperature control and energy efficiency standards, and encourage property owners to build or renovate buildings in accordance with the standards to reduce the energy consumption of living and working. The summer air-conditioning control temperature shall not be less than 26 degrees and air conditioning and heating control temperature shall not exceed 20 degrees in winter in offices, conference halls, hotels, restaurants, cinemas and other public places except special hospitals, nursing homes and other places.

The nation shall take measures to promote the use of renewable energy in buildings, and speed up the low-carbon transformation of existing buildings, advocate green and low carbon buildings. The resources and energy waste tax shall be paid when dismantling buildings still in the useful life and setting up new buildings at the former site. New houses built in urban areas shall comply with the new national and local residential energy efficiency standards. The collection measures of resources and energy waste tax shall be developed by the tax administrative department of The State Council in conjunction of development and reform department of The State Council.

Article 44 (Agriculture Measures) The nation shall take measures to strengthen the transformation of agricultural and livestock production, reduce greenhouse gas emissions in the farmland cultivation and livestock production, increase biomass energy development and utilization, accelerate rural biogas construction, and increase farmland and grassland carbon sinks.

Article 45 (Forestry and Grassland Measures) The nation shall encourage and support closing hill for afforestation, implement key forestry projects, enhance sustainable forest management, increase the forest stock volume and total carbon storage in forest vegetation.

The nation shall implement systems to promote grass-livestock balance, prohibiting or temporarily banning pasturing in certain areas, and regionally rotating pasturing, so as to control the livestock-carrying capacity of pastures and curb pasture degeneration. The nation shall expand the project of returning grazing land to grassland, strengthen the construction of man-made forage meadows and irrigated pastures, enhance the prevention and control of grassland natural disasters, and increase the grassland coverage rate and grassland carbon sinks.

The nation shall gradually expand nature reserves, scenic spots, forest parks, ecological forest and wetland area, and implement strict protection policy.

Article 46 (Ocean Measures) The nation marine management administrative department and people's governments in coastal areas shall strengthen the protection of marine and coastal ecosystems, vigorously develop the construction of marine protected areas, and strengthen marine and coastal carbon sink capacity.

Article 47 (Environmental Protection Measures) The nation shall improve urban waste disposal standards, adopt household garbage charging system, promote advanced waste incineration technology, formulate incentive policies for landfill gas recovery, and control greenhouse gas emissions in the waste disposal.

Article 48 (Product Measures) The nation implement energy-conservation product certification and low carbon labeling system of energy-efficient products, establish low-carbon labeling products inventory. Appliances included in labeling products inventory shall be priority in the government procurement list, and have access to energy subsidies. The nation shall distribute subsidies on the repurchase of old electrical appliances, support large-scale household appliances distribution companies to carry out home appliance trade activities, eliminate backward inefficient appliances, and popularize energy-conservation appliances.

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