Snapshot for the Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction Trading (Trial)

The translation from Chinese to English is supported byEnvironmentalDefenseFund(EDF) China's Ministry of Ecology and Environment (MEE)andthe State Administration for Market Regulation (SAMR) jointlyissued the Measures forthe Administration of Voluntary Green-house Gas Emission Reduction Trading (Trial).These Measuresaim to regulate activities associated with market trading of na-tional voluntary greenhouse gas emission reductions, support-ing China's commitmenttopeak carbon emissionsand achievecarbon neutrality. MAIN CONTENT EightSectionsand51Articles GeneralProvisions01ProjectValidation and Registration ...03EmissionReductionVerificationandRegistratior05EmissionReductionTrading07OversightofValidationandVerificationBodies08SupervisionandManagement10Legal Liability12SupplementaryProvisions14 General Provisions 01General Principles National voluntary greenhouse gas emission reduction trading ismarket-oriented, and its related activities adhere to the principles ofequity, justice, openness, integrity, and voluntariness. 02Applicant and Trading Participants Juridical person and other legally established organizations within the territory ofthe People's Republic of China EligibleApplicant Juridical persons, legally established orga-nizations, and natural persons who adhereto applicable regulations TradingEntities Institutional Structureand Governance03 MEE establishes a standardized national registration institution,registration system,trading institution, and trading systemfor voluntary greenhouse gas emission reductions. Registration Institution: The registration institution is responsible for operating andmanaging the registration system, handling the registrationand cancelation of emission reduction projects and emissionreductions. Trading Institution: The trading institution is responsible for operating and man-aging the trading system, providing centralized and unifiedtrading and settlement services for verified voluntary emis-sion reductions. 04Project Methodologies The project methodologies serve as the basis for the voluntary emis-sion reduction proiect validation and implementation, and accounting and verification of voluntary emission reductions. Project meth-odologies are issued by the MEE ProjectValidation and Registration Qualified Projects Project contributes to carbon abatementand segue.stration,avoiding orreducing GHG emissions,orachieving GHG removal. Projects must exhibit authenticity. uniqueness, andadditionality Projects shall fall under the areas supported by project me-thodologies published bytheMEE Project construction commenced afterNovember 8,2012 Project meets the requirements of sustainable developmentwithout adversely impacting various facets of sustainabledevelopment. Projects obligated under laws,regulations, and nationalpolicy to reduce GHG emissions, or projects that are in-cluded in the national and local carbon emission tradingmarket, should not apply to register as voluntary GHGemission reduction projects. ProjectApplicationProcess Project ownerprepares theproject design document. Projectownerspubliclydiscloseprojectdesigndocumentsandthenameofthevalidationandverificationbodytheyhavecommissioned. Thevalidationandverificationbodyreviewstheprojectdesigndocument,issuesandpub.liclydisclosestheprojectapprovalreport. The validation and verification body shallcommit totheproject approval reports com-pliance,authenticity, and accuracy. Projectownersapplyforprojectregistration. Project owners shall committo the project'sunigueness and the material provided is au-thentic, complete, and valid. The registration institution reviews the projectapplicationmaterials,processestheregistrationoftheproiectthatpassesthereview, and publicly disclosesall the projectowner's applicationmaterials. The original records and management ledgers of the data and infor-mationrelatedtoprojectdesigndocumentsshall beretainedforaminimumoftenyearsfollowingtheproject'slastemissionreductionregistration EmissionReductionVerification and Registration Projects registered by the registration institution are permitted to registertheir emission reductions. QualifiedEmissionReduction Emissionreductionsaremeasurable,traceable,verifiableandconsistentwiththeconservatismprinciple Theemissionreductionsmustcomplywiththeprojectmeth-odologiesissuedbytheMEE TheemissionrecluctionsmustbegeneratedafterSeptember22,2020 Theemission reductions aregenerated withinthe eligibilityperiod of project registration. Project owners may apply for emission reduction registrationin muliple installments. The emission reductions applying forregistration in each installment must have been generatedwithin five years of the date of its registration application. EmissionReductionApplicationProcess Project ownerpreparesthe emission reduction accountingreports. Projectownerpubliclydisclosestheemissionreductionaccounting reportand the name ofthe commissionedvalidation and verification body.(The body responsiblef