【SMM News Flash】 China consults on environmental tariff oversight, with deductions returned to users

Published: Oct 14, 2026 10:01 (GMT+8)

October 13, the State Administration for Market Regulation opened consultation on proposed changes to environmental tariff oversight, with comments due October 20. Grid companies would deduct environmental tariff payments when coal plants’ hourly average emissions exceed limits.

Unjustified shutdowns or abnormal operation of environmental equipment causing emissions at least twice the limit would incur penalties. Abnormal operation caused by unavoidable objective factors would not constitute pricing violations. The draft also proposes departmental data sharing, prioritizing pollution-reduction spending when allocating fines, and returning deducted tariff payments to users under applicable rules.

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