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

SNAPSHOT MEASURESFORTHEADMINISTRATIONOFVOLUNTARYGREENHOUSE GASEMISSIONREDUCTIONTRADING (Trial) ThetranslationfromChinesetoEnglishissupportedby EnvironmentalDefenseFund(EDF) China'sMinistryofEcologyandEnvironment(MEE)andtheStateAdministrationforMarketRegulation(SAMR)jointly issuedtheMeasuresfortheAdministrationofVoluntaryGreen-houseGasEmissionReductionTrading(Trial).TheseMeasuresaimtoregulateactivitiesassociatedwithmarkettradingofna- tionalvoluntarygreenhousegasemissionreductions,support-ingChina'scommitmenttopeakcarbonemissionsandachieve carbonneutrality. MAINCONTENT EightSectionsand51Articles GeneralProvisions01 ProjectValidationandRegistration03 EmissionReductionVerificationand Registratior05 EmissionReductionTrading07 OversightofValidationandVerification Bodies08 SupervisionandManagement10 LegalLiability12 SupplementaryProvisions14 GeneralProvisions 01GeneralPrinciples Nationalvoluntarygreenhousegasemissionreductiontradingismarket-oriented,anditsrelatedactivitiesadheretotheprinciplesofequity,justice,openness,integrity,andvoluntariness. 02ApplicantandTradingParticipants EligibleApplicant JuridicalpersonandotherlegallyestablishedorganizationswithintheterritoryofthePeople'sRepublicofChina Trading Entities Juridicalpersons,legallyestablishedorga-nizations,andnaturalpersonswhoadheretoapplicableregulations 11 01 03InstitutionalStructureandGovernance MEEestablishesastandardizednationalregistrationinstitution, registrationsystem,tradinginstitution,andtradingsystem forvoluntarygreenhousegasemissionreductions. RegistrationInstitution: Theregistrationinstitutionisresponsibleforoperatingand managingtheregistrationsystem,handlingtheregistrationandcancelationofemissionreductionprojectsandemissionreductions. TradingInstitution: Thetradinginstitutionisresponsibleforoperatingandman-agingthetradingsystem,providingcentralizedandunified tradingandsettlementservicesforverifiedvoluntaryemis- sionreductions. 04ProjectMethodologies Theprojectmethodologiesserveasthebasisforthevoluntaryemis-sionreductionproiectvalidationandimplementation,andaccount ingandverificationofvoluntaryemissionreductions.Projectmeth-odologiesareissuedbytheMEE Projectmethodologies VoluntaryGHGemissionsVoluntaryGHGemissions reductionprojectsreduction ValicationIrnplemertationAccountingVerificatior 02 ProjectValidationandRegistration QualifiedProjects Projectcontributestocarbonabatementandsegue.stration,avoidingorreducingGHGemissions,orachievingGHGremoval. Projectsmustexhibitauthenticity.uniqueness,andadditionality Projectsshallfallundertheareassupportedbyprojectme- thodologiespublishedbytheMEE ProjectconstructioncommencedafterNovember8,2012 Projectmeetstherequirementsofsustainabledevelopmentwithoutadverselyimpactingvariousfacetsofsustainabledevelopment. Projectsobligatedunderlaws,regulations,andnational policytoreduceGHGemissions,orprojectsthatarein-cludedinthenationalandlocalcarbonemissiontrading market,shouldnotapplytoregisterasvoluntaryGHG emissionreductionprojects. 03 ProjectApplicationProcess Projectownerpreparestheprojectdesigndocu ment. Projectownerspubliclydiscloseprojectdesign documentsandthenameofthevalidationand verificationbodytheyhavecommissioned. Thevalidationandverificationbodyreviewstheprojectdesigndocument,issuesandpub.liclydisclosestheprojectapprovalreport. Thevalidationandverificationbodyshallcommittotheprojectapprovalreportscom-pliance,authenticity,andaccuracy. Projectownersapplyforprojectregistration. Projectownersshallcommittotheproject'suniguenessandthematerialprovidedisau-thentic,complete,andvalid. Theregistrationinstitutionreviewstheproj ectapplicationmaterials,processesthereg istrationoftheproiectthatpassesthe review,andpubliclydisclosesalltheprojectowner'sapplicationmaterials. Theoriginalrecordsandmanagementledgersofthedataandinfor- mationrelatedtoprojectdesigndocumentsshallberetainedfor aminimumoftenyearsfollowingtheproject'slastemissionre ductionregistration 04 EmissionReduction VerificationandRegistration Projectsregisteredbytheregistrationinstitutionarepermittedtoregister theiremissionreductions. QualifiedEmissionReduction Emissionreductionsaremeasurable,traceable,verifiableandconsistentwiththeconservatismprinciple Theemissionreductionsmustcomplywiththeprojectmeth- odologiesissuedbytheMEE TheemissionrecluctionsmustbegeneratedafterSeptember22, 2020 Theemissionreductionsaregeneratedwithintheeligibility periodofprojectregistration. Projectownersmayapplyforemissionreductionregistration inmulipleinstallments.Theemissionreductionsapplyingfor registrationineachinstallmentmusthavebeengenerated withinfiveyearsofthedateofitsregistrationapplication. 05 EmissionReductionApplicationProcess Projectownerpreparestheemissionreductionaccountingreports. Projectownerpubliclydisclosestheemissionreductionaccountingreportandthenameofthecommissioned validationandverificationbody.(Thebodyresponsibleforprojectvalidationshallnotbecommissionedtocarry outemissionreductionverificationforthesameproject.) Validationandverificationbodyreviewstheemissionr