Following President Xi Jinping's 2030 peaking and 2060 carbon neutrality announcement in September 2020, the Minitry of Ecology and Environment issued a number of high-level policy documents related to climate change. The Interim rules for carbon emissions trading clarifies various definitions of the national carbon market, and cover the inclusion criteria of key emission entities, the setting and allocation of total allowances, trading entities, verification methods, reporting and information disclosure, supervision and penalties for breach. The rules enter into force on 1 February 2021.China's emission trading scheme does not have a cap. Emission allowances (permits) are allocated based on production. The ETS covers entities that emit over 26 000 tCO2e per year.