Local Chinese authority reveals carbon emissions data violation ahead of ETS launch

OTI Greentech AG

05/07/2021 12:02

BEIJING, July 5 (Reuters) - A local Chinese environmental
bureau disclosed a case of false declaration of carbon emissions
data, reflecting concerns over the integrity of China's emission
data as it prepares to launch its nationwide trading scheme.
    China's Inner Mongolia environmental authority last Thursday
said it had found several instances of environmental law
violations, of which one refers to emissions data misconduct and
the rest concern other issues such as the disposal of illegal
waste.
    Inner Mongolia High-Tech Materials Co, a power plant and an
alumina maker, had tampered with its emissions data in 12
reports at its two plants for 2019, according to a statement
from the Inner Mongolia Ecology and Environment bureau.
    The company is fully owned by Inner Mongolia Erdos Electric
Power & Metallurgical Ltd, the majority of which is owned by
Inner Mongolia Erdos Resources Co  600295.SS  and 20.2% held by
Mitsui & Co  8031.T .
    Erdos Resources did not reply to several requests for
comment.
    "We are aware of the issue and we understand that Inner
Mongolia High-Tech Materials has already responded to the
matter," a spokesperson at Mitsui in Tokyo said.
    The Inner Mongolia authorities said it had punished Erdos
High-Tech Material and ordered the company to correct the data. 
    China's emissions allowance allocation is designed to
retrospectively cover the carbon emissions during 2019-2020 at
the 2,225 power plants that are included in the initial trading
stage.
    The national trading scheme has been repeatedly delayed
partly due to concerns over the transparency of the emission
data. It was then announced that it would go online in late
June, but was postponed again without any reason being given.
 urn:newsml:reuters.com:*:nL3N2KZ065

 (Reporting by Muyu Xu and David Stanway; Additional reporting
by Yuka Obayashi in Tokyo, editing by Louise Heavens)
 ((muyu.xu@thomsonreuters.com; +86 10 56692117;))