China Greenhouse Gas Voluntary Emission Reduction Trading Measures Approved

On September 15, Huang Runqiu, the Minister of the Ministry of Ecology and Environment, China, chaired a departmental meeting, reviewing and in principle approving the "Greenhouse Gas Voluntary Emission Reduction Trading Measures (Pilot)" (hereafter referred to as the "Trading Measures").

According to the Ministry of Ecology and Environment, China, the establishment of a national greenhouse gas voluntary emission reduction trading market represents a significant institutional innovation using market mechanisms to reduce carbon and increase carbon sinks, and mobilizing societal efforts to jointly participate in greenhouse gas emission reduction. Building upon prior efforts, the Ministry continues to steadily and methodically advance the development of the voluntary emission reduction trading market.

The Ministry stated that the "Trading Measures" are the guiding document that establishes the basic framework for the voluntary emission reduction trading market, and are crucial for the market's launch and operation. There is an urgency to perfect the trading market's institutional system, timely release standards for project design and implementation, project verification and evaluation rules, registration and transaction rules, and other supporting management systems. There's also an emphasis on properly releasing project methodologies, prioritizing those with high societal expectations, minimal technical disputes, assured data quality, and both societal and ecological benefits. Once the market achieves a stable start and operation, there will be a gradual expansion of the voluntary emission reduction market support areas and strengthening of market functions. The establishment and operation of registration systems are being accelerated.

On August 17, the Beijing Green Exchange announced the opening of account functions for the national greenhouse gas voluntary emission reduction trading system, accepting market participant applications for registration and trading accounts.

Voluntary greenhouse gas emission reduction trading, as a mechanism to control and reduce greenhouse gas emissions, plays a pivotal role in achieving carbon peak and carbon neutrality goals. It encourages a broader range of industries and companies to participate in greenhouse gas emission reduction efforts and supports the development of projects critical for carbon reduction and sink enhancement, such as renewable energy, forestry carbon sequestration, methane reduction, and energy conservation.

Following the launch of the national greenhouse gas voluntary emission reduction trading market, various societal entities can autonomously develop greenhouse gas emission reduction projects in accordance with project methodologies and technical standards. Once the emission reduction effects of these projects are scientifically quantified and verified, they can be sold on the market, generating corresponding emission reduction revenue.