DisclosurebasedonChinaNationalETSDataManagementMechanismClimate-relatedInformationUniformstandardsHighqualityContinuityEffectivenessAbstractClimate-relatedinformationdisclosureiskeyforaddressingclimatechangerisksandpromotingclimateinvestmentandfinance.Inrecentyears,moreandmorecountriesandregionshavecarriedoutresearchesandpracticesonclimate-relatedinformationdisclosure,whilecarbonemissiondatadisclosureactsasthecornerstone.Inthecontextofachievinggoalsofcarbonpeakingandcarbonneutrality,Chinahasgraduallyexploredtheapproachestopromotecorporatecarboninformationdisclosure(CID).InJuly2021,thePeople’sBankofChina(PBoC)issuedtheGuidelineonEnviron-mentalInformationDisclosureforFinancialInstitutionstoprovidemethodologicalrulesforChinesefinancialinstitutions’environmentalinformationdisclosure;inDecemberofthesameyear,theMinistryofEcologyandEnvironment(MEE)ofPeople’sRepublicofChinaissuedtheAdministrativeMeasuresforDisclosureofEnvironmentalInformationbyEnterprises,statingthattheannualdisclo-sureofenterpriseenvironmentalinformationshouldincludecarbonemissiondata,andthisinitia-tivehasprovidedpolicysupportforclimate-relatedinformationdisclosure.However,therearestillmultiplechallengesforclimate-relatedinformationdisclosureinChina,suchasinconsistentdisclosurestandards,gapsindisclosurequality,andtheenterprises’lowenthusiasmforparticipation.Therefore,itisnecessarytofurtherestablishandimprovethestan-dardsystemandtheplatformconstructiontoensurethestandardizationandconsistencyofclimate-relatedinformationdisclosure.Climate-relatedinformationdisclosurebasedonthecarbonmarketdatareportingsystemisconducivetoensuringthecompletenessandaccuracyofthedataandimprovingthestandard-izationofinformationdisclosure,anditisofgreatsignificancetopromotingthedevelopmentofclimate-relatedinformationdisclosure.ThisreportanalyzestheexperienceandcharacteristicsofcarbonmarketinformationdisclosureinChina,theEuropeanUnion(EU),andtheU.S.,andputsforwardrelevantpolicyrecommendationsfromtheaspectsofthestandardsystem,disclosureplatform,capacitybuilding,andsupervisionandmanagementunderthecurrentsituationandchallenges.ContentsInternationalexperience-InformationDisclosurebasedonETSmechanismChapterI02InformationdisclosureinChina’scarbonmarketChapterII08Advantagesandchallengesofpromotingclimate-relatedinformationdisclosureinChinaleveragingthecarbonmarketmechanismChapterIII16ConclusionsandrecommendationsChapterIV2001IntroductionIntroductionAccordingtothelatestinternationaltrend,climate-relatedinformationdisclosurewillgraduallytransformfromvoluntarytomandatory.Themaininitiativesonclimate-relatedinformationdisclosurearevoluntarymethodsincludingtheTaskForceonClimate-relatedFinancialDisclosures(TCFD)frameworkandthecarbondisclosureproject(CDP)project.However,voluntaryclimate-relatedinformationdisclo-suremethodshaveposedproblemssuchasinconsistentdisclosurestandardswhichleadtodisorderindisclosurecontent,andlackofindustrycomparability.Tobetterregulateandencourageenterprisestodiscloseclimateinformation,theEU,Japan,andothercountrieshaveenactedlegislationtoaskformandatoryreporting.Inthefuture,improvingthequalityofinformationdisclosurewillbethefocusandmajorchallenge.Carbonemissioninformationisthefoundationforclimate-relatedinformationdisclosure,andthecarbonmarketdatareportingplatformisaneffective“tool”tocollectanddisclosehigh-qualitycarboninformation.Tobetterservetheconstructionofthecarbonmarket’sdatafoundation,theauthor-ityinchargeofthecarbonmarkethascollectedthecarbonemissiondataofentitiesineightkeyemissionindustriesforyearsandhasaccumulatedextensiveexperienceindatareportingandverificationsincetheinitiallaunchofthe7pilotcarbonmarkets.ComparedwithotherformsofinformationdisclosuresuchasCorporateSocialResponsibility(CSR)Reports,Environmental,Social,andGovernance(ESG)Reports,andannualreports,theMonitoring,Reporting,andVerification(MRV)systemforthecarbonmarketfocusesonthegreenhousegas(GHG)emissionsandcanbeusedtoobtainunifiedandcontinuousquantifiedresultsthatarecomparableverticallyandhorizontally.Thiswillhelptoimprovetheeffectivenessofclimate-relat-edinformationdisclosure.01Internationalexperience-InformationDisclosurebasedonETSmechanismChapterI1.EUthatthepublichastherighttoaccessinformationrelatedtoemissionallowanceallocationandemissionsmonitoringresults.In2012,theEuropeanCommissionestablishedaunionregistry3(UR)ofcarbonemissionallowances,coveringallmemberstatesoftheEUETS.TheEUURactsasanonlinedatabase,coveringtheaccountsinvolvingstationaryinstallations(datatransferredfromtheregis-trationsystemofeachstatetotheURbefore2012)andaviationoperators(incorporatedintheEUETSsinceJanuary2012).TheinformationrecordedintheURismainlyclassifiedintothefollowingcategories:Entities’orindividuals’accountsholdingfreeemissionallowance;Nationalimplementationmeasures(listingtheinstallationsineachmemberstatethataresubjecttotheEUETSDirective,andthefreeallocationofemissionallowanceforeachinstallationreceivedfrom2013to2020);Thetransferofemissionallowance(markettransaction);Certifiedannualcarbondioxideemissionsreportsfromeachinstallationandairroute;Annualaccountreconciliationbetweentheemissionallowanceandcertifiedemission.Duringannualaccountreconciliation,allenterprisesmustpayforasufficientamountofemissionallowancestocoverallcertifiedemissions.1https://eur-lex.europa.eu/eli/dir/2003/87/2018-04-082https://www.legislation.gov.uk/eudr/2003/4/pdfs/eudr_20030004_adopted_en.pdf3UnionRegistryClimateAction(europa.eu)03Internationalexperience-InformationDisclosurebasedonETSmechanismChapterITheEUEmissionsTradingScheme(EUETS)hasestablishedanemissiondatamonitoringandreportingsystemwhichisopentothepublic.EUDirective2003/87/EC1stipulatesthattheentitiescoveredbytheEUETSneedtoobtainGHGemissionpermitsapprovedbythecompetentauthorities,andmonitorandreportemissiondataasrequired.Theemissionreportsneedtobeauditedbyanindepen-dentverificationauthority.Inaddition,toensuretransparency,Directive2003/4/EC2aboutpublicaccesstoenvironmentalinformation,whichwasreleasedbytheEuropeanParliamentandtheCounciloftheEuropeanUnionon28January2003,stipulatesInaddition,theEUETSalsosetsuptheEuropeanUnionTransactionLog(EUTL)fortheautomaticcheck,recording,andapprovalofalltransactionsbetweenURaccountstoensurethatalltransactionscomplywiththerulesoftheEUETS.Theannualemissionallowanceallocation-relatedinformationofeachstationaryinstallationispublicandcanbeinquiredthroughEUTL,includingtheID,name,location,accountholder,accountstatus,licenseID,emissionallowanceallocation,installation-specificdetailsandhistoricalperformance,enhancingthesystem’stransparency.Figure1:EUTL4WebPage4https://ec.europa.eu/clima/ets042.TheU.S.TheU.S.EnvironmentalProtectionAgency(EPA)GHGReportingProgramusesanelectronicreportingsystem(ERS)toensureefficiencyandtransparency.TheemissiondataiscollectedandreportedthroughtheElectron-ic-GHGReportingTool(e-GGRT),enablingreal-timereporting,accurateverification,andefficientreleasetoensureconsistentandeffectiveinformationcollection.Meantime,thepubliccanalsoobtainandconsulttherelevantGHGInternationalexperience-InformationDisclosurebasedonETSmechanismChapterIemissiondatafromthisonlinereportingsystem.ThedataareavailabletothepublicthroughtheonlinetoolFacilityLevelInformationonGHGTool(FLIGHT)providedbyEPA.Thistoolpresentstheinformationandemissiondataoffacilitiesonawebsite,includingfacilitybasicinformation(suchasthespecificnameofeachfacilityanditsaffilia-tion),totalemissions,varioustypesofGHGemissions,fuelcombustiontypes,geographicallocations,etc.,andsupportstheautomaticcreationanddownloadofchartsaswellasfacilitatetheusertolocate,inquireandmakeanalysisonthedata.Figure2:TheU.S.e-GGRT5WebPage(requiringcorporateregistrationandlogin)5https://ghgreporting.epa.gov/ghg/login.do05Internationalexperience-InformationDisclosurebasedonETSmechanismChapterIFigure3:U.S.EmissionsFacilityGHGInformationToolFLIGHT6WebPage6https://ghgdata.epa.gov/ghgp/main.do7MandatoryGreenhouseGasReportingRegulationCaliforniaAirResourcesBoardToensuretheefficiencyandtransparencyofthecarbonmarket,theCaliforniaAirResourcesBoard(CARB)hasissuedmandatoryGHGreportingregulations,whichrequiresdisclosureofallinformationrelatedtothetotalemissioncontrolandcarbontradingmarket,includingemissionreports,third-partyverificationreports,andtheallocation,offset,complianceofemissionallowances,auctionannouncements,andresults,marketdata,etc.Inaddition,governmentdepartmentsnotonlyreleasethelistofemissionenterprisesandemissioninformation,butalsoestab-lishseveraladvisorycommittees,inviterelevantstakeholderstoparticipateinthepolicydesign,andholdonlineseminarstointeractandcommunicatewiththepublic7.Atthesametime,CaliforniahasalsodevelopedanIntegratedEmissionVisualizationTool(IEVT)todisplayairpollutantsandGHGemissiondataoflargeequipment.Thisplatformallowsuserstolocate,searchandanalyzeemissiondata.06Internationalexperience-InformationDisclosurebasedonETSmechanismChapterIFigure4:CaliforniaEmissionsDataVisualizationWebPage8078https://www.arb.ca.gov/ei/tools/pollution_map/v30beta.htmInternationalexperience-InformationDisclosurebasedonETSmechanismChapterIInformationdisclosureinChina’scarbonmarketChapterIIDuringtheconstructionofChina’spilotcarbonmarkets,eachpilothasestablishedandgraduallyimproveditsownMRVsystemandreleasedthestandardsofGHGaccountingandreportingfordifferentindustries,includingthedevelopmentofindustry-specificcarbonemissionaccountingandreportingguidelines,theGHGemissionreportingformat,theestablish-mentofelectronicreportingsystem,theformulationofthird-partyverificationproceduresandreportpreparationguideChina’spolicyofcarbonpeakandcarbonneutralityhasrepeatedlyemphasizedtheimportanceofcarbonemissiondisclosure.InOctober2021,theWork-ingGuidanceforCarbonDioxidePeakingandCarbonNeutralityinFullandFaithfulImplementationoftheNewDevelopmentPhilosophywasjointlyreleasedbytheCen-tralCommitteeoftheCommunistPartyofChinaandtheStateCouncil,pointingoutthattheconstructionandenhancementofthenationalcarbonemissiontradingmarketneedtobeaccelerated;thecarbonemissionreportingandinformationdisclosuresystemsofenter-prisesandfinancialinstitutionsneedtobeimprovedaswell.InOctoberofthesameyear,theStateCouncilissuedtheActionPlanforCarbonDioxidePeakingBefore2030,requiringrelevantlistedcompaniesandbond-is-suingcompaniestoregularlydisclosecarbonemissioninformationfollowingthelegaldisclosurerequirementsforenvironmentalinformation.Chinahasplannedaclearroadmapforenvironmen-talinformationdisclosuretoprovideinstitutional-guaranteesforclimate-relatedinformationdisclo-sure.InMay2021,theMEEissuedtheReformPlanfortheLegalDisclosureofEnvironmentalInformationSystem(abbr.Plan)tomakeadetailedplanfortheroadmapofenvironmentalinformationdisclosure.AccordingtothePlan,inDecemberofthesameyear,theMEEwouldissuetheAdministrativeMeasuresfortheLegalDisclosureofEnvironmentalInformationandtheGuidelinesontheFormofLegalDisclosureofEnvi-ronmentalInformationofEnterprises;in2022,theformatofdocumentsrelatedtoinformationdisclosureoflistedcompaniesandbondissuingenterpriseswillberevised;in2023,theevaluationofthelegaldisclo-suresystemofenvironmentalinformationwillbecar-riedout.By2025,themandatorydisclosuresystemofenvironmentalinformationwillbebasicallyformulated,enterpriseswilldiscloseenvironmentalinformationontimeinaccordancewiththelaw;themulti-partycooperationandco-managementmechanismwillbeimplementedeffectively;supervisionandpunishmentmeasureswillbestrictlyimplemented;theconstruc-tionoftheruleoflawwillbecontinuouslyimproved;thetechnicalspecificationsystemwillserveasstrongsupport,andthepublicparticipationwillsignificantlyincrease.InJuly2021,theGuidelinesforEnvironmentalInformationDisclosureofFinancialInstitutionsissuedbythePeople’sBankofChinaisofpioneeringsignifi-cancetopromotefinancialinstitutionsactivelycon-ductingenvironmentalinformationdisclosure.1.Regulations2.InformationdisclosureinChinaNationalETS09InformationdisclosureinChina’scarbonmarketChapterIIAccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sPowerGenerationEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sPowerGridEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sIronandSteelEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sChemicalProductionEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sElectrolyticAluminumManufacturers(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sMagnesiumSmeltingProductionEnterprisesinChina(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sFlatGlassManufacturers(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sCementManufacturers(forTrialImplementation)Thefirstbatch(2013)Thesecondbatch(2014)Thethirdbatch(2015)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sCivilAviationEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sPetroleumandNaturalGasManufacturers(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sPetrochemicalEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sIndependentCokingEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofChina’sCoalManufacturers(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofPapermakingandPaperProductManufacturers(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofOtherNonferrousMetalSmeltingandRollingEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofElectronicEquipmentManufacturingEnterprises(forTrialImplementation)BatchIndustrialenterprisereportingguidelinesTable2.1:GHGemissionsaccountingmethodsandreportingguidelinesforenterprisesinkeyindustrieslines,etc.,providinginvaluableexperienceforreferenceintheconstructionoftheMRVmanagementmechanismofthenationalemissiontradingsystem(ETS).DuringtheconstructionofthenationalETS,moreattentionhasbeenpaidtotherequirementsforclimate-relatedinformationdisclosure.Inordertoenhancethedatamanagementsystem,industriesincludingpetrol,chemical,buildingmaterials,non-ferrous,papermaking,andaviationareaskedtosubmittheupdatedSupplementaryDataStatementannually.10InformationdisclosureinChina’scarbonmarketChapterIIAccountingMethodsandReportingGuidelinesofGHGEmissionsforMachineryandEquipmentManufacturingEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofMiningEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofFood,Tobacco,Alcohol,BeverageandRefinedTeaEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsforPublicBuildingOperatingUnits(Enterprises)(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofRoadTransportationEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofFluorineChemicalEnterprises(forTrialImplementation)AccountingMethodsandReportingGuidelinesofGHGEmissionsofEnterprisesinOtherIndustries(forTrialImplementation)BatchIndustrialenterprisereportingguidelinesContinuedTable2.1:GHGemissionsaccountingmethodsandreportingguidelinesforenterprisesinkeyindustriesTable2.2:NationalStandardsforGHGManagementGB/T32150-20152016-06-01GeneralGuidelinesforAccountingandReportingofGreenhouseGasEmissionsforIndustrialEnterprisesGB/T32151.1-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart1:ElectricityGeneratorsGB/T32151.2-20152016-06-01GreenhousegasemissionsaccountingandreportingrequirementsPart2:GridcompaniesGB/T32151.3-20152016-06-01GreenhousegasemissionsaccountingandreportingrequirementsPart3:MagnesiumsmeltersGB/T32151.4-20152016-06-01GreenhousegasemissionsaccountingandreportingrequirementsPart4:AluminumsmeltersGB/T32151.5-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart5:SteelProducersGB/T32151.6-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart6:CivilAviationCompaniesSerialNumberTitleImplementationDate11Thethirdbatch(2015)InformationdisclosureinChina’scarbonmarketChapterIITheMeasuresfortheAdministrationofCarbonEmissionsTrading(forTrialImplementation)alsostatestherequirementsforinformationdisclosure:keyemissionentitiesshallregularlydisclosetheannualGHGemissionreports;theMEEandtheprovincialcompetentauthorityofecologicalenvironmentshallregularlydisclosetheinformationincludingthecompliancekeyemissionentities;nationalcarbonemissionregistrationandtradinginstitutionsshallestablishariskmanagementmechanismandinformationdisclosuresystem,formulateriskmanagementplans,andpromptlyreleaseinformationsuchascarbonemissionregistration,trading,andsettlement;keyentitiesandothertradingentitiesshall,inaccordancewiththerelevantregulationsoftheMEE,promptlydiscloseinformationonrelevantactivitiesofthenationalETS,andacceptthepublicsupervision.TheInterimRegulationsontheAdministrationofCarbonEmissionTrading(RevisedDraft)clarifiestherequirementsofinformationdisclosureandmakesrelevantstipulationsfordifferentstakeholderssuchascompetentauthorities,registrationandtradinginstitutions,andenterprises.Theprovincialcompetentauthoritiesofecologicalenvironmentshouldprompt-lydisclosethecomplianceofkeyentities.CompetentauthoritiesInformationsuchascarbonemissionregistration,trading,andsettlementshouldbepromptlyreleased,andrelevantinformationthatmayinducemajorchangesinthemarketshouldbedisclosed.RegistrationandtradinginstitutionsTheGHGemissionsofthepreviousyearshouldbedisclosedpromptlyafterthecompliance.KeyemissionentitiesTable2.3:InformationdisclosurerequirementsfordifferententitiesinthenationalETS12ContinuedTable2.2:NationalStandardsforGHGManagementGB/T32151.7-20152016-06-01GreenhousegasemissionsaccountingandreportingrequirementsPart7:FlatglassproducersGB/T32151.8-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart8:CementManufacturingCompaniesGB/T32151.9-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart9:CeramicProducersGB/T32151.10-20152016-06-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart10:ChemicalManufacturingCompaniesGB/T32151.11-20182019-04-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart11:CoalProducersGB/T32151.12-20182019-04-01GreenhouseGasEmissionsAccountingandReportingRequirementsPart12:TextileandApparelCompaniesSerialNumberTitleImplementationDateInformationdisclosureinChina’scarbonmarketChapterIILeveragingthe“NationalPollutantDischargePermitManagementInformationPlatform”,thenationalcarbonmarketdatareportingplatformisbuilttogivefullplaytothesynergisticeffectofpollutionreductionandcarbonreduction.Thecarbonemissiondatareportingsystemisincorporatedattheplatform’senterpriseend,whichincludesthedataqualitycontrolplanandcarbonemissionreporting.Thecarbonemis-siondatamanagementsystemisincorporatedattheplatform’smanagementendtoallowthecompetentau-thorityoftheenvironmentandcarbonverificationserviceagencytorealizefunctionssuchasonlineverification,entrustedverification,supervisionandmanagement,andstatisticalanalysis.Figure5:NationalPolluantDischargePermitManagementInformationPlatformPublicEnd9WebPage3.Theoperationofinformationdisclosuredigitalplatform9http://permit.mee.gov.cn/permitExt/defaults/default-index!getInformation.action13InformationdisclosureinChina’scarbonmarketChapterIIKeyemissionentitiessubmitdatainaunifiedform(annualreport)throughtheplatform.Throughthedatareportingplatform,keyentitiescoveredbythenationalETSneedtofillinthepermitapplicationformandim-plementationreportwithinformationsuchasthebasicproductionsituationoftheenterprise(suchastheenter-prisenameandindustrialcategorization),machinesetinformation(includingthetypeoffuelandunit,installa-tioncapacity,typeofboilersandturbineexhaustcoolingmethodandsoon),productionfacilityinformation,andthemethodtodeterminethemonthlylow-levelheatgenerationandelementalcarboncontentofthecor-respondingunit,etc.Atpresent,2216keyentitiesdata(asofSeptember2022)canbefoundonthe“PollutantDischargePermitManagementInformationPlatform”,whichincludestheenterprises’totalannualcarbondioxideemissionsandtheircomplianceperformance.Typically,rawdatasubmittedbyreporters(e.g.,actualelectricitygenerationorheatsupply,etc.)isnotmadepublicdirectly;reporteddatacanbegeneralizedandreleased,ordetaileddatacanbereleasedthroughanonlinedatabase.14Figure6:Subdirectorypageonthepublicendofnationalpollutionpermitmanagementinformationplatform-CarbonEmissionInformationdisclosureinChina’scarbonmarketChapterIIFigure7:ExampleofcorporateGHGemissioninformationdisclosuretable15InformationdisclosureinChina’scarbonmarketChapterIIChapterIIIAdvantagesandchallengesofpromotingclimate-relatedinformationdisclosureinChinaleveragingthecarbonmarketmechanismAtpresent,climate-relatedinformationdisclosureinChinaisstillattheinitialstage,andtherelevantmechanismneedstobefurtherimproved.Leveragingthecarbonmarkettopromoteclimate-relatedinformationdisclosureisofgreatsignificanceforimprovingdataqualityandpromotingdisclosurestandardization,andalsolayingafoun-dationfortheenhancementofaclimate-relatedinformationdisclosuresysteminturn.However,therearestillsomechallengesanddifficulties,includinginconsistentdisclosurestandards,uncleardisclosureplatforms,unprec-isedisclosedsubjectlevels,andtheenterprise’slowenthusiasmforparticipation.Accordingtothecurrentsituationofclimate-relat-edinformationdisclosure,thecontentofdisclosureisrelativelysubjectiveanddifficulttomakehorizon-talcomparisons,andthedisclosedinformationisnotwidelyutilized.Oneofthemainreasonsisthatclimate-relatedinformationdisclosureismainlyde-scribedqualitativelyandgenerallylacksquantita-tiveinformation;theotheristhattherearelargedifferencesininformationdisclosureamongindus-trieswithoutunifiedstandardsandthird-partyveri-ficationmechanisms.Climate-relatedinformationdisclosurebasedonthecarbonmarketensurestheaccuracyandreliabilityofthedatabeingdisclosed.TheMeasuresfortheAdministrationofCarbonEmissionsTrading(forTrialImplementation)clearlyrequiresthattheGHGemis-sionsofcoveredentitieswillbereportedandverifiedunderthesupervisionandmanagementoftheMEE,indicatingthatthedatasubmittedaccordingtotheunifiedindicators,guidelines,andmethodology,isconsistentandcomparable.Theverificationofathird-partyinstitutionandthecompetentauthorityrequiredbysubsequentMonitoring,Reporting,andVerification(MRV)hasalsogreatlyimprovedthereliabilityandaccuracyofdata.China'scurrentnationalstandardsforGHGemis-sionsaccountingandreportingrequirementsandtheguidelinesforcarbonemissionsaccountingandreportingbyindustrywerereleasedearlier,althoughsupplementarydatatablesareupdatedannuallyonthebasisoftheguidelines,thecontentoftheguidelinesandstandardsstillneedstobeupdated.Atthesametime,asthecurrentnationalcarbonmarketinChinaonlyincludesthepowergenerationindustry,aclimate-relatedinformationdisclosurestandardsystemcoveringmultipleindustrieshasnotyetbeenformed,andtheaccountingstandardsandotherquantitativeindicatorsandstatisticalcali-berforcorporatecarbonemissionsstillneedtobefurtherstandardized.1.Thedisclosurequalityhasbeenimprovedbutaunifiedstandardsystemhasyettobeestablished17Advantagesandchallengesofpromotingclimate-relatedinformationdisclosureinChinaleveragingthecarbonmarketmechanismChapterIIICurrently,duetothelowerstandardizationofclimate-relatedinformationdisclosureandalackofstandardizeddisclosureprocesses,dataconsistencyandcontinuityarestillatalowerlevel,affectingthecomparabilityofinformation.Oneofthemainrea-sonsisthatvoluntarydisclosureisstillthemain-stream,indicatingthecontentandformaremoreflexible;theotheristhatthestructureofinforma-tiondisclosureisnotunified,andthecarbonemis-siondataisstatedindifferentpartsofdifferentkindsofreport.Climate-relatedinformationdisclosureleveragingthenationalETSdatareportingplatformhaseffec-tivelyimproveditsstandardizationinthefollowingways.First,thecompetentauthoritieshaveclearlystipulatedthetimeandcycleofcarbonemissioninformationdisclosureofenterprises10,andthena-tionalETSdatareportingplatformhasalsoadoptedstandardizedmeasuresforthecarbonemissiondis-closureofcoveredentitiesinthepowerindustry.Second,thecarbonemissiondatareportingcon-sistsofthemonitoringplanandtheemissionreport,andtheabovefileswillbesubmittedbyen-terprisestotheprovincialcompetentauthorityofecologicalenvironmentforreview.Thisstandard-izedtheenterprise’scarbonemissioninformationdisclosuretoacertainextent,endowingdisclosedclimateinformationwithcomparability.However,thecarbonemissionreportofthenationalETSisbasedonthe“NationalPollutantDischargePermitManagementInformationPlatform”,andthedisclosureandreleaseofclimateinformationneedtobefurtherimprovedandupgradedthroughtheplatform.Ontheonehand,itisnecessarytoclearlydefinewhichkindofdatabelongstotheclimateinformation,forexample,settingupanexclusiveonthedisclosureplatformforpublicclimate-relatedinformationdisclosure;ontheotherhand,itisimportanttopreparetheclimate-relatedinforma-tiondisclosuretothepublic.Inadditiontoprovidingreportingchannelsforkeyemissionentitiesinthecarbonmarket,compatibilitywithnon-complianceenterprisesshouldalsobeconsideredtoimprovetheoperabilityoftheirdatareporting.10TheMeasuresfortheAdministrationofCarbonEmissionTrading(forTrialImplementation)requiresthat“Majoremittingentitiesshalldeveloptheirpreviousyear'sGHGemissionreportsinaccordancewiththetechnicalspecificationsforenterpriseGHGemissionsaccountingandreportingissuedbytheMEEaswellastheirfiledMonitoringPlanandsubmitthemtothecompetentprovincialecologyandenvironmentauthoritiesofthelocationwheretheentitiesareoperating.EmissionreportsshallbesubmittedbyMarch31ofeachyearthroughtheenvironmentalinformationmanagementplatformorothermethodsspecifiedbytheMEE”.18Thedegreeofstandardizationofdisclosurehasbeenimprovedbuttheunifiedinformationplatformstillneedstobeimproved2.Advantagesandchallengesofpromotingclimate-relatedinformationdisclosureinChinaleveragingthecarbonmarketmechanismChapterIIIThesubjectsofclimate-relatedinformationdisclo-surearemainlylistedcompaniesorenterprisegroups,whilethecarbonmarketdatareportingsystemnotonlycoversthelistedentitiesbutalsothenon-publiclylistedcompaniesatthesametime,facilitatingtheexpansionofentitiesofclimate-re-latedinformationdisclosureandcompulsorilyincorporatesentitieswhichmeetspecificemissionamountinclimate-relatedinformationdisclosuresystem.However,thedatareportingbasedonthecarbonmarketisonlyintendedforcoveredentities,thustherearecertainlimitationsinthecoverageofindustriesandenterprises;fromtheperspectiveofcoverage,theMRVsystemfocusesonScopes1and2carbonemissionsofregulatedentities,whichmeansarelativelylimitedscopeofapplicationcom-paringwiththedemandofeconomy-wideclimatedisclosure.Inaddition,emissiondatareportingandclimate-relatedinformationdisclosurearerelativelyseparatedwithoutrobustlinkageandinteractioninthecurrentoperationoftheETS.Thecarbonmarketinformationreportingisbasedonindepen-dentlegalentities(suchasapowerplant),whileclimate-relatedinformationdisclosureismainlyconductedbylistedcompaniesorenterprisegroupsasawhole.Duetothegapjustmentionedabove,thedatareportingsystemcannotbefullyutilizedbythelistedcompaniestoimplementclimate-relatedinformationdisclosureatthecorpo-ratelevel.Climate-relatedinformationdisclosureinvolvescom-petentauthoritiesatvariouslevelssuchasecologicalenvironment,financialsupervision,andindustrialinformatization,andthedisclosureworkreliesonthecross-departmentalandcross-platformworkofthecorrespondingdatainformationplatform,includingthedatareporting,review,disclosure,supervisionofdata,whilecoordinationmechanismneedstobefurtherestablishedandimproved.Inaddition,duetothelackofunifieddisclosurerulesandstandardstoguideenterprisestoconductclimate-relatedinformationdisclosure,enterprisesarecautiousaboutcarbonemissioninformationdis-closure,andtheirrelevantcapabilitiesalsoneedtobeenhanced.Datasecurityandconfidentialityman-agementisalsoacriticalissuethatenterprisespaymoreattentionto,especiallyenterprisescoveredbythecarbonmarket.Theriskofsensitiveinformationdivulgementduetoinformationdisclosureisalsooneofthereasonswhyenterprisesarenotwillingtodisclose.Inaddition,capacitybuildingisstillhighlyneeded,anditisalsonecessarytofurtherimprovethebusinessenvironmentofdomesticcertificationagenciesandthird-partyserviceagencies.193.Thescopeofthesubjectisgraduallyexpandingandthecross-levelconvergenceandenterprisecapacitybuildingstillneedtobestrengthenedAdvantagesandchallengesofpromotingclimate-relatedinformationdisclosureinChinaleveragingthecarbonmarketmechanismChapterIIIConclusionsandrecommendationsChapterIVDevelopinginformationdisclosurebasedonthecarbonmarketMRVsystemandthematurecarbonaccountingmethodologiesisconducivetoensuringtheaccuracy,consistencyandstandardizationofdata.Tofurtherpromotetheinformationdisclosuremechanismleveragingthecarbonmarket,thefol-lowingrecommendationsareproposed.Financeisessentialforachievingcarbonneutralitygoal,andclimate-relatedinformationdisclosurewilllayasolidfoundationforrelevantpolicydesignandfacilitateinvestmentbyfinancialinstitutions.Toensuretheclarityandconsistencyofdatadisclosure,itisnecessarytoestablishaunifiedmechanism,standard,andmethodforclimate-relatedinforma-tiondisclosure.Establishaunifiedcarbonaccountingstandardsystem.Scientificandeffectiveaccountingmethodscanimprovethequalityofinformationdisclosureofenterprises,andhelptoenhancetheirmotivationandconfidenceinthisarea.Andcarbonaccountingandclimateinvestmentoffinancialinstitutionsmainlydependontheclimate-relatedinformationdisclosureofentities.Atpresent,quantitativeindi-catorssuchasaccountingstandardsforcorporatecarbonemissionsstillneedtobefurtherstandard-ized.Forexample,whethertoadopttheinternation-alstandardsorthedomesticstandardsbasedonlocalexperiencesneedtobeconsidered,andthefinallyissuedstandardsshouldbebasedontheindustry-specificaccountingandreportingguidelines,andneedtobeoptimizedandupdatedontimetoformasystemassoonaspossible.Improvethestandardsystemwithspecificimple-mentationrules.TheAdministrativeMeasuresfortheLegalDisclosureofCorporateEnvironmentalInformation(abbr.Measures)issuedbytheMEEattheendof2021isbyfartheonlytop-leveldocu-menttoregulatetherelevantactivitiesofcorporateenvironmentalinformationdisclosureandtostrengthenpublicsupervision.TheMeasureswasimplementedonFebruary8,2022.However,thefiledoesnotclarifyspecificrequirementsfortheform,content,andstandardofdisclosure.Althoughenter-priseshavemadevariousvoluntaryattemptsatinformationdisclosure,therearestillsomeproblems,suchasinconsistentformats,uncleardata,andthelackofunifiedmethodologyandrobustendorse-ment,sotheimplementationrulesneedtobefur-therstandardized.Toestablishacoherentanddetailedmanage-mentsystemofinformationdisclosurebasedonthecarbonmarketmechanism.Toachievecarbon211.Toimproveaccountingstandardsanddis-closurespecifications,andestablishimpl-ementationrulesConclusionsandrecommendationsChapterIVCorporateclimate-relatedinformationdisclosureincludesmultipleelementssuchastimeliness,lowcost,resourcesharing,andtechnologyempower-ment.Theestablishmentofaunifiedinformationdisclosureplatformwillhelpoptimizeresourcesharingandtherebyprovidebetterservicesformarketstakeholders.Implementclimate-relatedinformationdisclo-surebasedontheenvironmentalinformationmanagementplatform.Chinahasestablishedarelativelycompletedataaccountingsystemforthecarbonmarket,andthereportingplatformalsoprovidesstrongsupportforfutureinforma-tiondisclosure.Itisrecommendedtoestablishaclimate-relatedinformationdisclosureplatformbasedonthe“NationalPollutantDischargePermitInformationManagementPlatform”andclarifytheauthorityinchargeofdifferentprocesses,andconductclimate-relatedinformationdisclosurebasedontheworkandmanagementsystemoftheecologicalandenvironmentaldepartment.Graduallytransformtheenvironmentalinformationmanagementplatformtobecomethefoundationofenforcement,andcontinuouslyimprovetheplatformfunctionsincludingscreening,checking,summariz-ing,andanalyzingdatasoastofacilitatethesupervi-sionofcompetentauthoritiesandforward-lookingdataanalysisofenterprises.Establisha“transform”mechanismbetweencarbonmarketinformationreportingandcorpo-rateclimate-relatedinformationdisclosure.Ascarbonemissiondataisakindofbusinesssecret,itisnecessarytoestablishaneffective“transform”mechanismforhighlysensitiveinformationtoensurecorporateinformationsecurity.Furthermore,technologiesincludingbigdata,theInternetofThings,andblockchainshouldbefullyusedtoreducethecostofcorporateinformationdisclosure.peakingandcarbonneutrality,high-qualityclimate-re-latedinformationdisclosureishighlydemandedbydifferentstakeholders.Atthesametime,climate-relat-edinformationdisclosurehasbecomeincreasinglycriticaltosupporttheoperationofthecarbonmarket.Theoperationofthecarbonmarketmechanismandtheestablishmentoftheclimate-relatedinformationdisclosuresystemcomplementeachother,soitisnecessarytoestablishacoherentanddetailedman-agementsystemtakingbothintoconsideration,tocoordinatealldepartmentsthroughaunifiedandstandardizedplatform,andtopromoteinformationdisclosureeffectivelybyconsistent,stable,andde-tailedmanagementrules.222.Promoteclimate-relatedinformationdis-closureleveragingthecarbonmarketandestablishaunifieddisclosureplatformConclusionsandrecommendationsChapterIVClimate-relatedinformationdisclosureisaprocesswhichneedstobedevelopedandfurtherimprovedaccordingtodifferentphases.Itisrecommendedtoimplementitstepbystepfromtheaspectsofdiffer-entareas,industries,subjectsandcontents.Itisrecommendedtostartclimate-relatedinforma-tiondisclosurefromregionalpilotscarbonmarket,consideringtheirabundantexperiencesonemissiondataaccountingandreporting.Theclimateinvest-mentandfinancingpilots,low-carboncitiesandotherareasisrecommendedtobeincorporatedbystages.1-2keyemissionindustriesinthecarbonmarketwithagooddatabase(suchaspower,steel)aresuggestedtobeselectedforfirsttrial.Astheotherkeyindus-trieswillbegraduallyincorporatedintothenationalcarbonmarket,thescopeofclimate-relatedinforma-tiondisclosurewillbeenlargedaccordingly,andeventuallybecomeamechanismcoveringhighcarbonemissionindustries,financeandotherhighvalue-addedindustries.Talkingaboutthesubject,itisrecommendedthattofirststartwithandthesubjectsofdifferentsizesandgoalsshouldbeincorporatedtograduallyexpandthescopeofdisclosedsubjects,andregulatethedisclo-suremethodsofdifferententerpriseswithaunifiedframework.Fortheentitiesnotincludedinthecarbonmarket,itisnecessarytofurtherrefinethedisclosurerequirements,rulesandformatsbasedonthemethodologydevelopedbythecarbonmarketandrelevantdatastatisticsrules,anditisalsonecessarytoclarifywhethertherelevantdataneedstobecertifiedbyathird-partyverificationagency.Itisessentialtofullyconsidertheenterprisedatasecurityandmanagementcoststodeterminethecontentneedtobedisclosed.Corporateclimate-relatedinformationdisclosureisaprocessfromthequalitativemethodtothecombinationofthequalitativeandthequantitative.Datarelatedtoindustrialstabilityandbusinesssecretsneedstobeseriouslyconsidered.Atthesametime,themanagementcostandtransitionpressureshouldalsobetakenintoaccounttoreduceenterprises’burdens.Furthermore,itisrecommendedthatenterprisesgradu-allyestablishaninternalmanagementmechanismforclimate-relatedinformationdisclosure,mappingouttheircarbonemissionssituation,strengthendataqualitymanagementthroughinformatization,andstrengthentheaccuracyandconsistencyofdatastatistics,tolayafoundationforquantitativedisclosureinthefuture.Inaddition,sinceScope3disclosureinvolvestheupstreamanddownstreamsupplychains,relevantdataisdifficulttobeobtained,andthedataaccuracyneedstobeimproved.Atpresent,mostdomesticenterprisesdonothavetheconditionstodiscloseaccurateandcompleteScope3carbonemissioninformation,andtheScope3disclosureoffinancialinstitutionsmainlyreliesontheScopes1and2informationdisclosureofotherindus-tries.Therefore,theclimate-relatedinformationdisclo-sureofenterprisesstillmainlyinvolvesScopes1and2bynow,andfinancialinstitutionsshouldstrengthentheconnectionandcommunicationwithotherindustriestograduallyincludethedisclosureofScope3emissionsinformationwhenconditionspermit.233.Establishaphase-by-phasedisclosuremechanismandstrengthenenterprisedatasecurityConclusionsandrecommendationsChapterIVStartwithalocalpilotcarbonmarket.Expandtoclimateinvestmentandfinancingpilots,low-carboncitypilotsandotherregionsbystages.Graduallyexpandtothewholecountry.Select1-2keyemissionindustriesinthecarbonmarket(suchaspower,steel,etc.).Graduallyexpandtotheeightkeyindustriesinthecarbonmarket.Coverhighcarbonemissionindustries,financeandotherhighvalue-addedindustries.AreasCoveredindustryFocusoncarbonmarketregulatedenterprises.Graduallyincludeenterprisesthatimplementmandatorycleanerproductionaudits,listedcompaniesandbond-issuingcompaniesthatmeettheprescribedconditions.Covercarbonmarketregulatedenterprises,listedcompanies,bondissuers,financialinstitu-tionsandotherdiversifieddisclosureentities.SubjectsBasicinformationoftheenterprise(unitname,legalrepresentative,registeredaddress,contactpersonandcontactinformation,mainproducts,etc.);informationonemissionfacilities;totalannualcarbondioxideemissions;changesinproductionandoperation;carbonmarketcompliance,etc.Inadditiontothecontentdisclosedintheinitialstage,carbonaccountingboundariesandaccountingmethodsareadded,includingactivityleveldataandemissionfactorsourcedescriptions,etc.;annualchangesintotalcarbonemissionsandintensity(mainlyScope1andScope2carbonemissions).Inadditiontothecontentsdisclosedintheinitialandmid-termstages,Scope3carbonemissionsandthenon-CO2emissionswillbegraduallyincludedwhenconditionspermit.ContentInitialstage(until2023)Middlestage(until2025)Laterstage(after2025)Table3.1:Phaseddisclosurerecommendationsbasedonthecarbonmarket24Fromaninvestmentperspective,financialinstitutionspaymoreattentiontothecompletenessandeffective-nessofinformationdisclosure.Atpresent,investmentinstitutionsmainlyrelyontheannualreportsoflistedcompaniestofindoutclimate-relateddata,andcannotobtaincomplete,verifiedandcomparableinformation.4.Considercross-industryconvergenceandimprovecomparabilityofinformationdis-closureConclusionsandrecommendationsChapterIVToachievecarbonpeakingandcarbonneutrality,itiskeyforinvestmentinstitutionstoassessthecarbonemissionriskoflistedcompanies,andthedisclosureofcarbonemissiondataandcarbonemissionperfor-manceofenterprisesalsoplaysakeyroleintheriskassessment.Consideringthecross-industryconvergenceandthecharacteristicsofdifferentindustries,itissuggestedtoestablishasetofspecificindustrystandardsundertheunifiedclimate-relatedinformationdisclosureframework.Informationdisclosurerequirescross-industryconvergence,therebyincreasingdatacomparability,helpingcompaniestofurtherupgradecarbonemissionmanagement,andfacilitatinghorizontalandinter-industrycomparisonswhichisimportantforinvest-mentinstitutions.Ingeneral,companiesdiscloseclimateinformationfromtheirowninterests,whichisnotquiteusefulforinvestorstocompareamongindustries.Itissuggestedto,onthebasisofthecarbonmarket’srequirements,clarifythedefinitionofclimate-relatedinformationdisclosure,buildastandardsystem,andstandardizetheuniformtechnicalrequirementsforclimate-relatedinformationdisclo-sureacrossindustries(suchasemissionreductionactionsandrelatedassessmentswhichfocusonemissionreductionperformanceandrelevantquanti-tativedata).Atthesametime,theaccountingmeth-odsofdifferentindustriesandthescopeofdisclosureofdifferententerprisesshallbeuniformlystipulated,andtheboundariesandscopeofresponsibilityshallbeclarified.Throughtheestablishmentofaninfor-mationdisclosureexpertcommittee,thetop-leveldesignofinformationdisclosurewillbestrength-ened,andtheframeworkconstructionoftheclimate-relatedinformationdisclosuresystemwillbepromoted.Strengtheningthepublicityandtrainingofclimate-relatedinformationdisclosure.Throughcapacitybuilding,theawarenessandabilityforenterprisesonclimate-relatedinformationdisclosurewillbeenhanced.Forcarbonmarketregulatedenter-prises,itisrecommendedtostrengthentheiraware-nessofparticipatingincarbontradingandclimateriskmanagement,encouragethemtovoluntarilydiscloseclimaterelatedinformation,andpromotethemutualpromotionofcarbonmarketandinformationdisclosuresystem.Fornon-regulatedenterprises,itissuggestedtostrengthenpolicyguidance,encouragethemtoactivelycarryoutinformationdisclosurerelatedwork,systematicallyimprovetheirclimate-relatedinformationdisclosurecapabilities,andfurtherimprovetheenforceability.255.Promotethecapacitybuildingofenterprisesandthird-partyinstitutions,andgraduallyimprovethelevelofdisclosureConclusionsandrecommendationsChapterIVCultivatingthird-partyprofessionalserviceteamsandstrengtheningsupervision.Itissuggestedtocultivateandguidethird-partyinstitutionstoprovideprofessionalinformationdisclosuremarketservicesandcomplianceconsulting,soastobettersupportenterprisestoimprovethequalityofinformationdisclosure.Inaddition,governmentalsoneedtorefineinformationdisclosurerulesandguidelinesatthepolicylevel,andatthesametimetostrengthenthird-partyauditsupervisiontoensuretheobjectivi-ty,authenticityandintegrityofdisclosedinformation.Clarifyingtheresponsibilitiesofallpartiesandbuildingadiversifiedregulatorysystem.Whileoptimizingthequalityofinformationdisclosure,theinformationsecurityofparticipantsshouldalsobeassured.Itisalsocrucialtocoordinatetherelation-shipbetweenconfidentialityanddisclosure;todefinethescopeofinternalinformation,informationdisclo-sureonlyavailablebetweengovernmentdepart-ments,andthecontentdisclosedtothepublic;toensurethesecurityofcorporatebusinesssecretsandsensitiveinformation;andtostrengthenthedatasecuritymanagementoftheunifieddisclosureplatform.Itisalsorecommendedtobuildadiversifiedsupervisionandmanagementsystemof“enterpriseautonomy,industryself-discipline,publicoversight,andgovernmentsupervision”.Promotinginformationsharingandestablishingacommunicationandcollaborationmechanism.Itissuggestedtocreateacollaborativemechanismamongrelevantdepartments,openupcross-de-partmentalinformationsharingchannels,andjointlypromoteclimate-relatedinformationdisclosure.Atthesametime,itisnecessarytomakeoverallplanningandstrengthenthein-depthcommunica-tionbetweenthedemandsideandthesupplysideofclimateinformation,thatis,thefinancialsectororinvestorsandenterprises.Thenationalcarbonmarketexchangeandregistrationsystemcanserveasaneffectivecarbonemissionmanagementinfor-mationplatformtofacilitatecarboninformationsharingamongecologicalenvironmentauthorities,departmentsofdevelopmentandreform,anddepartmentsoffinancialsupervision.266.Strengthensupervisionandinformationsharing,anddeepencommunicationandcoordinationConclusionsandrecommendationsChapterIVFoundedin1967andheadquarteredinNewYork,EnvironmentalDefenseFund(EDF)isoneoftheworld’sleadingenvironmentalorganizations.EDFhasmorethan3millionmembersandastaffofmorethan1000professionals.AreasthatEDFworksininclude:climateandenergy,oceans,ecosystems,health,etc.EDFhasbeenworkinginChinasince1991.In1997,accordingtoChina’soverseasNGOlaw,EDFregisteredandbecamethethefirstforeignNGOunderthesupervisionofChina’sMinistryofEnvironmentalProtection.AboutEDFEstablishedonAugust5,2008,ShanghaiEnvironmentandEnergyExchangeCo.Ltd.(SEEE),approvedbytheShanghaiMunicipalPeople'sGovernment,isthefirstprofessionalenvironmentandenergytradingplatforminChina.ToachievethetargetsofcarbonpeakandcarbonneutralityofChina,whileensuringtheorderlyconstructionandoperationofChina’snationalcarbonmarket,SEEEpromotescarbontrading,carbonfinancingandinnovativeworkinothergreenandlow-carbonfields.AboutSEEEINTRODUCTIONZhengChangStrategyandR&DCenter,ViceDirectorchangzheng@cneeex.comXifanWangStrategyandR&DCenter,Researcherwangxifan@cneeex.comEnvironmentalDefenseFund-BeijingRepresentativeOfficeNo.28,AndingmenEastStreet,DongchengDistrict,Beijing，China+89-10-64097088http://www.edf.orghttp://www.cet.net.cnXiaoluZhaoDirector,GlobalClimatexzhao@edf.orgYingWangManager,ClimateFinanceyiwang@edf.orgShanghaiEnvironmentandEnergyExchangeCo.Ltd.No.229，Tiantong，Rd，HongkouDistrict，Shanghai，China+89-21-5690300http://ww.cneeex.comshets@cneeex.comJinLiViceGeneralManager,SeniorEconomistlijin@cneeex.com
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