In April, the China Beijing Equity Exchange, in collaboration with its subsidiary China Beijing Green Exchange, assisted the Fengtai Primary People’s Court of Beijing (hereinafter “the Court”) in trading in a company’s Beijing Emissions Allowances (BEAs) through judicial enforcement proceedings. Over 10,000 tons of BEA were publicly traded on-site, with a transaction value of over CNY 1 million (or USD 139,585). This marked the first time a Beijing court has enforced a judgment by trading BEAs.
The company in question, due to poor operations, owed over CNY 20 million (or USD 2.8 million) in severance payments to more than 300 employees. In 2023, the employees applied to the Court for enforcement of the labor arbitration award. The Court discovered that in addition to conventional assets, the company also held BEA in the BEA management system.
Under Chinese law and the Supreme People’s Court’s “Opinions on Providing Judicial Support for Advancing Carbon Peaking and Carbon Neutrality”, carbon emission allowances are recognized as enforceable assets. The Court coordinated with the Beijing Municipal Ecology and Environment Bureau to place a provisional freeze on the company’s BEAs. After the company fulfilled its annual compliance obligations, the provisional freeze was converted into a formal freeze on the remaining BEAs. Under court supervision, the company subsequently sold over 10,000 tons of BEAs through the China Beijing Green Exchange within just 10 minutes. The proceeds of over CNY 1 million (or USD 139,585) was deposited into the Court’s enforcement account.
This case not only resolved the employees’ wage claims but also advanced green transformation, demonstrating the judiciary’s role in supporting China’s “dual carbon” goals.
Photo by Jéan Béller on Unsplash