[Policy Update] MIIT and Five Regulators Release "Interim Measures for the Administration of Recycling and Comprehensive Utilization of NEV Waste Power Batteries"

📰 News Highlight

The Ministry of Industry and Information Technology (MIIT), in collaboration with five other departments including the NDRC and MEE, officially released the "Interim Measures for the Administration of Recycling and Comprehensive Utilization of New Energy Vehicle (NEV) Waste Power Batteries". Following a management philosophy of "Full-Channel, Full-Chain, and Full-Lifecycle," the new regulation will take effect on April 1, 2026.

⚙️ Core Components

1.       Source Regulation & "Vehicle-Battery Integration": Strengthened lifecycle management of waste batteries, with a vehicle–battery integrated scrapping mechanism to prevent leakage into grey markets.

2.       Digital Identity & Traceability: A national battery traceability platform with mandatory digital IDs enables real-time, lifecycle-wide tracking.

3.       Rigid Regulatory Constraints: Clear administrative penalties enforce recycling and reporting obligations, shifting from voluntary guidance to hard regulation.

💡 Key Takeaways

1.       Responding to the “1-Million-Tonne” Threshold: The policy elevates battery recycling into a regulated industrial pillar, mitigating environmental and resource risks from large-scale battery retirements.

2.       Standardizing the Secondary Market: Mandatory digital IDs and traceability standardize the recycling supply chain, phasing out informal operators and favoring compliant, technology-advanced players.

[Market Update] PBOC Expands Carbon Reduction Supporting Tool to Accelerate Green Transformation

📰 News Highlight

The People’s Bank of China (PBOC) officially announced the expansion of the "Carbon Reduction Supporting Tool" (CRST) to further support China’s comprehensive green transition. The updated policy incorporates projects with direct carbon reduction effects—such as energy-saving renovations, green infrastructure upgrades, and low-carbon energy transitions—into its support scope.

💡 Key Takeaways

1.       Expanded Project Scope: The tool expands beyond clean energy to include energy-efficiency retrofits and green upgrading projects.

2.       Quarterly Operational Mechanism: Re-lending volumes are set quarterly, with banks accessing funds based on eligible green loan disbursements.

3.       Structured Funding Limit: An annual RMB 800 bn cap ensures stable, low-cost liquidity, encouraging lower lending rates for carbon-reduction projects.

[Carbon Market]

During January 19 – January 23, the total transaction volume of Carbon Emission Allowances (CEA) in Chinese National Carbon Market reached 2,425,165 tons, with a total transaction value of USD 25,321,257.61. The highest price was USD 11.53/ton, and the lowest price was USD 9.16/ton. For bulk agreement transactions, the volume was 2,130,000 tons, with a transaction value of USD 22,029,460.61.