China integrates renewable energy certificate scheme with voluntary GHG emission reduction market 
On Sept. 11, 2024, the General Department of the National Energy Administration and the Ministry of Ecology and Environment of China published a Circular on the Integration of the Country’s Renewable Energy Certificate Scheme and Voluntary Greenhouse Gas Emission Reduction Market. A renewable energy certificate (REC)1 is a certificate certifying power consumption in renewable energy. The circular sets out mechanisms for the integration, such as a transition period. The circular will be in effect for two years from Oct. 1, 2024.
Two-year transition period
The Chinese government has introduced prescribed frameworks for voluntary greenhouse gas emission reduction in (deepwater) offshore wind power and solar thermal power generation in the form of official documents titled “Voluntary Greenhouse Gas Emission Reduction Methodologies — Grid Connection of Offshore Wind Power”2 and “Voluntary Greenhouse Gas Emission Reduction Methodologies — Grid Connection of Solar Thermal Power”3, respectively. In the transition period, companies operating projects in these frameworks can apply for either renewable energy certificates or China Certified Emission Reduction (CCER) credits — credits issued by the state for voluntary greenhouse gas emission reduction.
The voluntary emission reduction market will not cover projects for photovoltaic power or other types of wind power for the time being. After the transition period, requirements for the integration of deepwater offshore wind power and solar thermal power will be adjusted as necessary, taking into account the situations of renewable energy certificates and the voluntary emission reduction market.
Mechanisms to avoid duplicate credits
If a deepwater offshore wind power or solar thermal power project chooses to participate in the renewable energy certificate trading, the company cannot receive CCER credits for power consumption covered by the certificate scheme.
If a project chooses to participate in the CCER program, the Qualification Center of the National Energy Administration4 will, after the review and registration of the project for the CCER program, “freeze” the company’s renewable energy certificates that have not been traded in the applicable period. Then after the review and registration of emission reduction credits, the center will revoke the untraded renewable energy certificates for emission reduction, and publish information on them.
The official circular (in Chinese) is available at
https://www.mee.gov.cn/xxgk2018/xxgk/xxgk10/202409/t20240911_1085663.html.
1 再生能源绿色电力证书
2 温室气体自愿减排项目方法学 并网海上风力发电
3 温室气体自愿减排项目方法学 并网光热发电
4 国家能源局资质中心
