Basic Situation - The revenue from the transfer of emission rights refers to the income obtained by the government through the paid transfer of emission rights, including the emission rights usage fees collected through fixed quota transfers and the income obtained through public auctions [1][2]. - Emission rights are defined as the types and quantities of pollutants that a polluting entity is allowed to discharge within a certain period, according to national or local pollution discharge standards and total pollution control requirements [1]. Historical Development - Since 2007, the State Council has organized pilot programs for the paid use and trading of emission rights in 11 provinces (regions, cities) including Tianjin, Hebei, and Inner Mongolia [2]. - In 2014, the State Council issued guidelines to further promote the paid use and trading of emission rights, requiring pilot areas to establish a paid use system and accelerate trading [2]. - In 2015, regulations were introduced to standardize the management of revenue from the transfer of emission rights, aiming to promote pollutant reduction through market mechanisms [2]. - In December 2020, it was announced that starting from January 1, 2021, the revenue from the transfer of emission rights would be collected by tax authorities [2]. Policy Basis - The primary legal framework governing this system is the "Environmental Protection Law of the People's Republic of China" [3]. - Key documents include: 1. Guidelines from the State Council on promoting the paid use and trading of emission rights (2014) [4]. 2. Notification from the Ministry of Finance, National Development and Reform Commission, and Ministry of Environmental Protection regarding the management of revenue from the transfer of emission rights (2015) [4]. 3. Notification regarding the transfer of certain non-tax revenues to tax authorities (2020) [4]. 4. Announcement from the State Taxation Administration on the management responsibilities for non-tax revenue projects (2020) [4]. Revenue Collection Standards - For fixed quota transfers, polluting entities must pay an emission rights usage fee, with the fee standards determined by local price, finance, and environmental protection departments based on factors such as environmental resource scarcity and pollution control costs [7]. - For public auctions, the starting price is determined by local price, finance, and environmental protection departments, referencing the emission rights usage fee standards [8]. Budget Management - Revenue from the transfer of emission rights is included in the general public budget management and is fully paid into the local treasury [9].