China's Ministry of Ecology and Environment (MEE) has issued the Administrative Measures for the Voluntary Greenhouse Gas Emission Reduction Trading (Trial) on October 20, 2023, as part of the nation’s efforts to achieve carbon peaking and neutrality. Though the Measures are marked with the status of trial version, it holds the same legal force as a formal document and may be revised after a period of practical testing. The Measures enter into force on the same publication date.
As the legal framework to support the operation of a national voluntary emission reduction trading market, the Measures outline requirements for trading and related activities, while also defining the key responsibilities for market participants.
Registration
All entities can apply for registration of their voluntarily developed greenhouse emission reduction projects and reduction outcomes with the registry agency. The applicant shall prepare project design paper in accordance with project methodology and other technical standards released by MEE, and appoint a verification agency to approve the project. The essential application materials include:
Project application form
Project design paper
Project approval report
Undertaking
The registered reduction outcomes are called “Certified Voluntary Emission Reductions”, calculated in tons of carbon dioxide equivalent (tCO2e)
Trading
The trading products of the national voluntary emission reduction trading market are “Certified Voluntary Emission Reductions”. The transaction is conducted through the trading system by ways of listing agreements, bulk agreements, one-way bidding and other methods that comply with regulations. The registration system will promptly update the quantity and status of "Certified Voluntary Emission Reductions" for each account based on the transaction results. So far, there is no provisions for cross border transaction and use. The Measures stressed that specific regulations shall be separately formulated by MEE.
| Greenhouse gas refer to natural and man-made gaseous components in the atmosphere that absorb and re-emit infrared radiation, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorinated Carbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3) |
