China proposes maximum $4,500 fine for carbon market violations

China has spent years developing its national carbon market, which is expected to start by covering its power sector that accounts for about 14% of the world's fossil fuel-derived emissions

China’s top environmental regulator is proposing a maximum fine of 30,000 yuan ($4,500) for participants in the country’s new national carbon market that don’t buy enough allowances to cover their greenhouse gas emissions.
 
The punishment was among several details outlined in a consultation paper the Ministry of Ecology and Environment sent to other government departments, seeking stakeholder opinions. Another penalty for insufficient coverage was an unspecified reduction in the amount of initial emissions allowances companies would get the following year.
 
The maximum penalty would be small compared to Europe, where a carbon market has been operating since 2005,