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

As a supplemental option for the national and local compliance carbon markets,China GHGVoluntary Emission Reduction Program (CCER program)is able tohelp enterprises coveredbycompliancecarbon marketsfulfill their compliance obligationatalowercost. CCERisalsoan importantinstrumentfor business or social activities thataimsto achieve carbonneutralityfor offsetting their hard-to-reduce emissions. Meanwhile, the financial benefitsgenerated from the CCERprojectscan also incentivizeambitiousemission reductions inthesectors not covered bycompliancecarbon markets, therebyacceleratingthe application ofmore low-cost emission reduction technologies and lowering the overallsocialemissionreduction costs. In 2012, the National Development and Reform Commission (NDRC) published theInterimMeasures on the Management of theGreenhouse GasVoluntary Emission ReductionProgramandtheGuidelines onValidationand Verification ofGreenhouse GasVoluntaryEmissions Reduction Projects. In 2015, the national registry of Voluntary Carbon EmissionReductions was launched, marking the official start of trading for China's GHG VoluntaryEmission Reduction Program.In 2017,NDRC suspended thenew projectdevelopmentandcredits issuance under thepreviousChina's voluntary greenhouse gas emission reductionprogram(the previous CCER program).In 2018, the responsibilitiesofaddressing climatechange were transferred from the NDRC totheMinistry of Ecology and Environment(MEE).The competent authority ofmanaging the China GHG Voluntary Emission ReductionProgramwasshiftedaccordingly. Since the launch ofpreviousCCER programin 2012, over 1300 projects have beenregistered, covering variousproject scopessuch as energy, waste disposal, agriculture, andafforestation. It is estimated that the annual emission reduction exceeds 100 million tonnes.TheissuedCCER credits isabout77 million tonnes. As of the end of December 2022, thecumulative trading volume of CCER is about 450 million tonnes, and the cumulativetransactionvalueis about 6 billion yuan. In 2021, approximately 190 key emissionentitiesinthe firstcompliance period of the national carbon market used approximately 32 milliontonnes of CCERfor offsetting theircomplianceobligation. Voluntary greenhouse gasemission reduction transactions have made positive contributions to promoting the low-costachievement of carbon reduction goals in the entire society and serving green and low-carbon development.Since theprevious CCER programwas launched in 2012,the programhas made a positive contribution toachievingcarbon emission reduction targetswith lowersocialcosts andaccelerating thegreen and low-carbon development. OnOctober19th,2023, theMEEreleased theMeasures for the Administration ofGreenhouse GasVoluntaryEmission Reduction Trading (Trial), marks thelaunchof thenew CCERprogram, which has becomeone of thecrucialenablersfor achieving China'scarbon peaking and carbon neutrality goals, as well as China’s contribution for global climategovernance.On October 24th, 2023,the MEE releasedthe first batch of4 projectmethodologiesthat outlined the prioritized support project types under the new CCERprogram, including:afforestation carbon sink, grid-connected solar thermal powergeneration, grid-connected offshore wind power generation, and mangrove vegetationcreation.On October 25th, 2023,the MEE released theNotice on Work Arrangements ofGreenhouse GasVoluntaryEmission Reduction Program, which is the institutionalarrangements for the emission reductions issued under thepreviousCCERprogram.OnJanuary 22nd, 2024, thenewCCER programwas officially launched. Key Elements Timeline 2012:Start of previous CCERprogramIssued theInterim Measures on the Management of theGreenhouse GasVoluntary Emission Reduction Program. Released application forms for both project registration and emission reductionsissuancefor the GHGVoluntary Emission Reduction Program. Issued theGuidelines on Validation and Verification ofGreenhouse GasVoluntaryEmissions Reduction Projects. 2013-2016:PublishingMethodologies andLaunchtheMarketApproved200 methodologiesin 12batches, approved 9 exchanges in 4batches, approved 10 verification bodies in 5batches, another 2 verification bodies were approved in 2017. In 2013, the China Certified Emission Reduction ExchangeInfo-Platform was launched,which published information related to CCER projects’ validation and registration, andemission reductions’ validation andissuance. In 2014, released theTemplate for theGreenhouse GasVoluntary Emission ReductionProject Design Document(“F-CCER-PDD”)-Version 1.1, andreleased theTemplate for theGreenhouse GasVoluntary Emission Reduction Project Monitoring Report (“F-CCER-MR”)-Version 1.0. In 2015, the Registry of the China GHG Voluntary Emission Reduction Program waslaunched. 2017:Suspending theregistrationofCCER Projectsand IssuanceofCCERcreditsIssued theNDRC Announcement on Suspending Applications forGreenhouse Gas VoluntaryEmissionReduction Methodologies, Projects, Emission Reduction