China published rules on how to measure, report and verify CO2 emissions for four major sectors of the economy on Monday, as the nation prepares to launch its national carbon market next year.

The announcement by the National Reform and Development Commission (NDRC) outlined MRV rules for oil and gas producers, petrochemical firms, coal and coke producers.

China published MRV rules for 10 sectors last year, including electricity generators and iron and steel producers, and plans to set up guidelines for a total of 23 sectors.

In early 2014, the NDRC said companies that emitted more than 13,000 tonnes of CO2 or used more than 5,000 tonnes of standard coal in 2010 must report their emissions to the government.

The MRV rules are a crucial step in China’s work to set up a national emissions trading scheme in mid-2016.

Jiang Zhaoli, a director at the NDRC climate change department, told a conference in Beijing last week that the market is likely to cover power, metallurgical industries, non-ferrous metals, building materials and chemicals, and possibly aviation, from the outset, although the Cabinet is still to make a final decision.

According to the NDRC’s current plans, the market will cover facilities emitting over 26,000 tonnes of CO2 annually from the beginning, but that threshold might be lowered eventually, and more sectors will be brought in.

China has pledged to cut its emissions per unit of CO2 to 40-45 percent below 2005 levels by 2020, and to ensure its emissions peak no later than 2030.

By Stian Reklev – stian@carbon-pulse.com​