On December 27, 2024, the China Beijing Green Exchange, who is currently the China Certified Emission Reduction (CCER) scheme (before the national-level voluntary trading market platform is established), issued the Notice on the Trading Entities and Trading Methods for China Certified Emission Reduction System (hereinafter referred to as “the Notice”).   

The CCER scheme is actually China’s voluntary GHG emission trading market. It is initiated in 2021 and was active in 2015-2017. The country officially relaunches the scheme in January of 2024 to support its carbon peak and carbon neutrality goals, with several preparation work paving the way. 

This Notice is a further clarification on the China’s CCER system, and specifies details for the Implementation Rules on Project Verification and Validation for GHG Emission Reduction. It aims at further regulating the national voluntary GHG emission reduction trading and activities related to it, as well as protecting the legitimate rights and interests of trading entities, while maintaining the order of the trading market. 

Two key contents in the Notice are summarized as follows:

ž  Trading entities: At the present stage, only legal persons are allowed to be the trading entities of CCER, and those that are stipulated in the Administrative Measures of Trading on Voluntary GHG Emission Reduction (for interim use) as restricted to participate in the trade (such as ecological and environmental regulators, market supervision departments, registration agencies, trading institutions, certification and verification institutions etc.), shall not allowed to act as trade entities . Natural person as the GHG trade entities will be gradually opened up according to the operation of the market in the future.

ž  Trading method: At present, the only available trading method is listed agreement. The other two methods that were planned, which are bulk agreement trading and one-way bidding trading, will be opened in the future.

China’s national carbon trading system and CCER are both implemented in a practically slower progress than expected by the sector community. Especially for the CCER, relevant approval and procedure are acted in a very strict manner due to the complexity of verification and validation for relevant projects, and the fact that relevant methodologies on carry out such activities are not fully available.

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