On October 19, 2023, the Ministry of Ecology and Environment of China promulgated the “Measures for the management of voluntary emission reduction trading of greenhouse gases (Trial)”. The Measures came into effect immediately on the same day. The Measures, which is a revised version of the “Temporary measures for the management of voluntary emission reduction trading of greenhouse gas” promulgated in 2012, stipulates the entities of applications and trading, the conditions for voluntary greenhouse gas emission reduction projects applying for registration, and the conditions for emission reductions applying for registration. The targets of the “National carbon emissions trading market” is “key emitters”, but companies other than “key emitters” can also participate the “voluntary emission reduction trading” stipulated in the Measures voluntarily.
Entities of application and trading
Corporations and other organizations registered in China can carry out voluntary emission reduction activities and register voluntary greenhouse gas emission reduction projects and emission reductions in accordance with the Measures. Legal entities, other organizations, and natural persons that meet the relevant national regulations also can participate in voluntary greenhouse gas emission reduction trading based on the Measures.
Conditions for projects applying for registration
Greenhouse gas voluntary emission reduction projects applying for registration must meet the following conditions:
- Conform to the principle of conservatism
- Comply with the project methodology issued by the Ministry of Ecology and Environment
- Construction begins on or after November 8, 2012
- Meet other conditions stipulated by the Ministry of Ecology and Environment
Conditions for registration of emissions reductions
For voluntary greenhouse gas emission reduction projects that have been registered with a registration organization, the project’s emission reduction amount can be registered. Emission reductions to be applied for registration must have occurred on or after September 22, 2020, and within five years prior to the date of the project’s registration application.
Method of trading
After registering with the Voluntary Emission Reduction Trading System※ and opening an account, then can use the system to conduct transactions.
※Voluntary emission reduction trading system: https://www.ccer.com.cn/
For the original text of the Measures mentioned-above, please refer to the following URL (in Simplified Chinese).