In the context of the recently announced Chinese ambition to reach Carbon Neutrality by 2060, the Chinese central government has released a draft of National Carbon Emissions Trading Management Measures for public consultation.
The draft specifies the Offset Mechanism through which key emitters may offset up to 5% of their emissions by using the Chinese Certified Emission Reduction (CCER 国家核证自愿减排量) scheme or other emission reduction targets announced by the Ministry of Ecology and Environment. The CCER to be used for offsetting shall come from emission reduction projects in the fields of renewable energy, carbon sinks, methane utilization, etc. and should be generated outside the boundaries of the national carbon trading market's key emitters.
According to the Interim Measures for the Management of Greenhouse Gas Voluntary Emission Reduction温室气体自愿减排交易管理暂行办法 released by the NDRC in 2012, the owner of the emission reduction project shall apply for project registration (备案) at the relevant supervisory department who will then verify and certify the emission reduction. The approved volume (measured in tCO2e) to be offset with CCER can be traded in the CCER transaction platform. The project registration was once halted by the NDRC in 2017 due to the improper practice of some projects. However, with the latest release of the Carbon Emissions Trading Management Measures, we can expect CCER trading to re-emerge. (Chinese GOV, Chinese Forestry Department)