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A Circular on the Integration of the Nation’s Renewable Energy Certificate Scheme and Voluntary Greenhouse Gas Emission Reduction Market was released on September 11, 2024 by the General Department of the National Energy Administration and the Ministry of Ecology and Environment of China. A certificate attesting to electricity consumption from renewable sources is known as a renewable energy certificate. The circular lays out the integration’s methods, including a transitional period. Starting on October 1, 2024, the circular will be in force for two years.
Two-year transition period
“Voluntary Greenhouse Gas Emission Reduction Methodologies Grid Connection of Offshore Wind Power” and “Voluntary Greenhouse Gas Emission Reduction Methodologies Grid Connection of Solar Thermal Power,” the Chinese government has introduced prescribed frameworks for voluntary greenhouse gas emission reduction in the generation of solar thermal power and (deepwater) offshore wind power. Companies running projects under these frameworks during the transition period are eligible to apply for China Certified Emission Reduction (CCER) credits or renewable energy certificates, which are provided by the state for voluntary reductions in greenhouse gas emissions.
For the time being, photovoltaic and other wind power projects will not be covered by the voluntary emission reduction market. Following the transition phase, conditions surrounding the integration of solar thermal power and deepwater offshore wind power will be reviewed in light of the voluntary emission reduction market and the status of renewable energy certificates.
Mechanisms to avoid duplicate credits
A deepwater offshore wind farm or solar thermal power plant cannot obtain CCER credits for electricity consumption covered by the certificate system if it decides to take part in the renewable energy certificate exchange.
In the event that a project decides to take part in the CCER program, any renewable energy certificates held by the company that have not been traded within the relevant period will be “frozen” by the National Energy Administration’s Qualification Centre following project registration and review. The centre will then cancel the untraded renewable energy certificates for emission reduction and publish information on them following the review and registration of emission reduction credits.