China GHG Voluntary Emission Reduction Program (CCER program) Fact Sheet

ChinaGHGVoluntaryEmissionReductionProgram(CCERprogram)FactSheet Asasupplementaloptionforthenationalandlocalcompliancecarbonmarkets,ChinaGHGVoluntaryEmissionReductionProgram(CCERprogram)isabletohelpenterprisescoveredbycompliancecarbonmarketsfulfilltheircomplianceobligationatalowercost.CCERisalsoanimportantinstrumentforbusinessorsocialactivitiesthataimstoachievecarbonneutralityforoffsettingtheirhard-to-reduceemissions.Meanwhile,thefinancialbenefitsgeneratedfromtheCCERprojectscanalsoincentivizeambitiousemissionreductionsinthesectorsnotcoveredbycompliancecarbonmarkets,therebyacceleratingtheapplicationofmorelow-costemissionreductiontechnologiesandloweringtheoverallsocialemissionreductioncosts. In2012,theNationalDevelopmentandReformCommission(NDRC)publishedtheInterimMeasuresontheManagementoftheGreenhouseGasVoluntaryEmissionReductionProgramandtheGuidelinesonValidationandVerificationofGreenhouseGasVoluntaryEmissionsReductionProjects.In2015,thenationalregistryofVoluntaryCarbonEmissionReductionswaslaunched,markingtheofficialstartoftradingforChina'sGHGVoluntaryEmissionReductionProgram.In2017,NDRCsuspendedthenewprojectdevelopmentandcreditsissuanceunderthepreviousChina'svoluntarygreenhousegasemissionreductionprogram(thepreviousCCERprogram).In2018,theresponsibilitiesofaddressingclimatechangeweretransferredfromtheNDRCtotheMinistryofEcologyandEnvironment(MEE).ThecompetentauthorityofmanagingtheChinaGHGVoluntaryEmissionReductionProgramwasshiftedaccordingly. SincethelaunchofpreviousCCERprogramin2012,over1300projectshavebeenregistered,coveringvariousprojectscopessuchasenergy,wastedisposal,agriculture,andafforestation.Itisestimatedthattheannualemissionreductionexceeds100milliontonnes.TheissuedCCERcreditsisabout77milliontonnes.AsoftheendofDecember2022,thecumulativetradingvolumeofCCERisabout450milliontonnes,andthecumulativetransactionvalueisabout6billionyuan.In2021,approximately190keyemissionentitiesinthefirstcomplianceperiodofthenationalcarbonmarketusedapproximately32milliontonnesofCCERforoffsettingtheircomplianceobligation.Voluntarygreenhousegasemissionreductiontransactionshavemadepositivecontributionstopromotingthelow-costachievementofcarbonreductiongoalsintheentiresocietyandservinggreenandlow-carbondevelopment.SincethepreviousCCERprogramwaslaunchedin2012,theprogramhasmadeapositivecontributiontoachievingcarbonemissionreductiontargetswithlowersocialcostsandacceleratingthegreenandlow-carbondevelopment. OnOctober19th,2023,theMEEreleasedtheMeasuresfortheAdministrationofGreenhouseGasVoluntaryEmissionReductionTrading(Trial),marksthelaunchofthenewCCERprogram,whichhasbecomeoneofthecrucialenablersforachievingChina'scarbonpeakingandcarbonneutralitygoals,aswellasChina’scontributionforglobalclimategovernance.OnOctober24th,2023,theMEEreleasedthefirstbatchof4projectmethodologiesthatoutlinedtheprioritizedsupportprojecttypesunderthenewCCERprogram,including:afforestationcarbonsink,grid-connectedsolarthermalpowergeneration,grid-connectedoffshorewindpowergeneration,andmangrovevegetationcreation.OnOctober25th,2023,theMEEreleasedtheNoticeonWorkArrangementsofGreenhouseGasVoluntaryEmissionReductionProgram,whichistheinstitutionalarrangementsfortheemissionreductionsissuedunderthepreviousCCERprogram.OnJanuary22nd,2024,thenewCCERprogramwasofficiallylaunched. KeyElements KeyElements NewCCERProgram PreviousCCERProgram ClimateGoal ContributetotheachievementofChina’scarbonpeakingandcarbonneutralitygoals N/A CoveredGHGs CarbonDioxide(CO2),Methane(CH4),NitrousOxide(N2O),Hydrofluorocarbons(HFCs),Perfluorocarbon(PFCs),SulfurHexafluoride(SF6),NitrogenTrifluoride(NF3). CarbonDioxide(CO2),Methane(CH4),NitrousOxide(N2O),Hydrofluorocarbons(HFCs),Perfluorocarbon(PFCs),andSulfurHexafluoride(SF6). Methodologies ReleasedbyMEE.Firstbatchofprojectmethodologiesareincluding:afforestationcarbonsink,grid-connectedsolarthermalpowergeneration,grid-connectedoffshorewindpowergeneration,andmangrovevegetationcreation. AppliedbyprojectownersandapprovedbytheNDRC.200methodologies1wereapprovedfrom2013-2016. Registry Thenationalregistrationinstitutionmanagestheregistry.Beforetheestablishmentofthenationalregistrationinstitution,theNationalCenterforClimateChangeStrategyandInternationalCooperation(NCSC)assumesthemanagingrole. TheRegistryoftheChinaGHGVoluntaryEmissionReductionProgram. TradingPlatform Thenationaltradinginstitutionmanagesthetradingsystem.Beforetheestablishmentofthenationaltradinginstitution,theChinaBeijingGreenExchangeassumesthemanagingrole. 9localexchanges Validationand VerificationBodies ApprovedjointlybytheMEEandtheStateAdministrationforMarketRegulation(SAMR). 12verificationbodiesapprovedbytheNDRC. Penalties Violationofthemeasureswillbeorderedforrectification,beimposedfinesorsanctions.Thoserefusesupervisionandinspection,orprojectownersprovidingfalsifiedmaterialscouldbefinednotlessthan10,000RMBbutnomorethan100,000RMB;Validationand Violationofthemeasureswillbeorderedforrectificationorcanceltheregistration. 1173ofwhichwereadoptedormodifiedfromCleanDevelopmentMechanism(CD