China toughened rules for industrial polluters participating in its national carbon market, including larger fines for entities found to be falsifying data on emissions reductions, reports Caixin. The regulations, signed off Sunday by Premier Li Qiang and to come into force from May, give greater powers to the Ministry of Ecology and Environment as China prepares to extend the system, which currently covers about 2,200 utilities that are responsible for roughly 4.5 billion tons a year of greenhouse gas emissions.
Participants found to have withheld or misreported emissions data face fines of as much as RMB 2 million ($278,000) and deductions from their future allocation of pollution allowances, according to the amended market regulations.
The changes also include measures aimed at reducing the supply of free allowances as the market, which has faced criticism for being too lenient, aims to do more to compel large emitters to cut emissions.