China releases regulations for trading in voluntary reductions of greenhouse gas emissions

The “Measures for the management of voluntary emission reduction trading of greenhouse gases (Trial)” were released by the Chinese Ministry of Ecology and Environment on October 19, 2023. That same day, the Measures went into immediate effect. The Measures, which is a revised version of the “Temporary measures for the management of voluntary emission reduction trading of greenhouse gas” promulgated in 2012, stipulates the entities of applications and trading, the conditions for voluntary greenhouse gas emission reduction projects applying for registration, and the conditions for emission reductions applying for registration. The targets of the “National carbon emissions trading market” is “key emitters”, however enterprises other than “key emitters” can also participate in the “voluntary emission reduction trading” provided in the Measures voluntarily.

Entities for trade and its implementation

Corporations and other organizations registered in China can carry out voluntary emission reduction activities and register voluntary greenhouse gas emission reduction projects and emission reductions in accordance with the Measures. Legal entities, other organizations, and natural persons that meet the relevant national regulations also can participate in voluntary greenhouse gas emission reduction trading based on the Measures.

Conditions for projects applying for registration

Greenhouse gas voluntary emission reduction projects applying for registration must meet the following conditions:

• Conform to the principle of conservatism
• Comply with the project methodology issued by the Ministry of Ecology and Environment
• Construction begins on or after November 8, 2012
• Meet other conditions stipulated by the Ministry of Ecology and Environment.

Conditions for registration of emissions reductions

For voluntary greenhouse gas emission reduction projects that have been registered with a registration organization, the project’s emission reduction amount can be registered. Emission reductions to be applied for registration must have occurred on or after September 22, 2020, and within five years prior to the date of the project’s registration application.

Method of trading

One can utilise the Voluntary Emission Reduction Trading System to make trades after creating an account and registering with the system.