Measures for the Administration of Voluntary Reduction of Greenhouse Gas Emissions and Emissions Credits Trading (For Trial Implementation)

Measures for the Administration of Voluntary Reduction of Greenhouse Gas Emissions and Emissions Credits Trading (For Trial Implementation)


Order of the Ministry of Ecology and Environment and the State Administration for Market Regulation

(No.31)

The Measures for the Administration of Voluntary Reduction of Greenhouse Gas Emissions and Emissions Credits Trading (For Trial Implementation), as deliberated and adopted at the 3rd executive meeting of the Ministry of Commerce on September 15, 2023, and approved by the State Administration for Market Regulation, are hereby issued, and shall come into force on the date of issuance.

Huang Runqiu, Minister of Ecology and Environment

Luo Wen, Director of the State Administration for Market Regulation

October 19, 2023

Measures for the Administration of Voluntary Reduction of Greenhouse Gas Emissions and Emissions Credits Trading (For Trial Implementation)

Chapter I General Provisions

Article 1 These Measures are developed in accordance with the decisions and plans of the CPC Central Committee and the State Council on the building of a national market for trading on the voluntary reduction of greenhouse gas (GHG) emissions and relevant laws and regulations for the purposes of promoting China's goal of peak carbon dioxide emissions and carbon neutrality, controlling and reducing GHG emissions generated by human activities, encouraging voluntary reduction of GHG emissions, and regulating the nationwide voluntary reduction of GHG emissions and emissions credits trading and related activities.

Article 2 These Measures apply to the supervision and administration of voluntary reduction of GHG emissions and emissions credits trading and related activities throughout the country.

Article 3 The nationwide voluntary reduction of GHG emissions and emissions credits trading and related activities shall follow the principles of fairness, impartiality, openness, integrity, and voluntariness.

Article 4 Legal persons and other organizations legally established within the territory of the People's Republic of China may carry out the voluntary reduction of GHG emissions in accordance with these Measures and apply for registration of projects on the voluntary reduction of GHG emissions and emissions reduction.

Legal persons, other organizations, and natural persons that comply with the relevant provisions of the state may participate in the voluntary reduction of GHG emissions and emissions credits trading in accordance with these Measures.

Article 5 The Ministry of Ecology and Environment builds a national marketplace for voluntary reduction of GHG emissions and emissions credits trading in accordance with relevant provisions of the state, is responsible for formulating the management requirements and technical specifications for the nationwide voluntary reduction of GHG emissions and emissions credits trading and related activities, and supervises, administers, and guides the nationwide voluntary reduction of GHG emissions and emissions credits trading and related activities.

The provincial-level department of ecology and environment is responsible for the supervision and administration of voluntary reduction of GHG emissions and emissions credits trading and related activities within its administrative area.

The department of ecology and environment at the districted-city level cooperates with the provincial-level department of ecology and environment to supervise and administer the voluntary reduction of GHG emissions and emissions credits trading and related activities within its administrative area.

According to the division of responsibilities, the market regulation department and the department of ecology and environment shall supervise and administer the institutions engaged in the validation and verification of projects on the voluntary reduction of GHG emissions (“validation and verification institutions”) and their validation and verification activities.

Article 6 The Ministry of Ecology and Environment organizes the establishment of a unified national registration institution for voluntary reduction of GHG emissions (“registration institution”) and a national registration system for voluntary reduction of GHG emissions ("registration system") in accordance with relevant provisions of the state.

The registration institution is responsible for the operation and management of the registration system, accepting through the system applications for registration and de-registration of projects on the voluntary reduction of GHG emissions and emission reductions, and recording information on projects on the voluntary reduction of GHG emissions and information on registration, holding, change, and de-registration of certified voluntary emission reductions. The information recorded in the registration system is the ultimate basis for judging the attribution and status of certified voluntary emission reductions.

The registration institution may, in accordance with the relevant provisions of the state, formulate specific business rules for projects on the voluntary reduction of GHG emissions and emission reduction registration, and report them to the Ministry of Ecology and Environment for recordation.

Article 7 The Ministry of Ecology and Environment, in accordance with the relevant provisions of the state, organizes the establishment of a unified national institution for voluntary reduction of GHG emissions and emissions credits trading ("trading institution") and a national system for voluntary reduction of GHG emissions and emissions credits trading ("trading system").

The trading institution is responsible for the operation and management of the trading system, and provides centralized and unified trading and settlement services for certified voluntary emission reductions.

The trading institution shall take effective measures in accordance with the relevant provisions of the state to maintain the sound development of the market, prevent excessive speculation, and guard against financial risks.

The trading institution may, in accordance with the relevant provisions of the state, formulate specific business rules for trading in certified voluntary emission reductions and report them to the Ministry of Ecology and Environment for recordation.

Article 8 The Ministry of Ecology and Environment is responsible for organizing the formulation and publication of technical specifications such as the Methodology for Projects on Voluntary Reduction of Greenhouse Gas Emissions (“Project Methodology”), which serve as the basis for the validation and implementation of projects on the voluntary reduction of GHG emissions in related fields and emission reduction accounting and verification.

The project methodology shall make clear the applicable conditions, accounting and monitoring methods for emission reductions, project validation, and verification requirements for emission reductions, and specify the time limit for applying for registration of emission reductions for the project.

The project methodology shall be revised in time according to economic and social development, industrial restructuring, industry development stage, climate change policy and other factors, and included in the national standards system when the conditions are ripe.

Chapter II Project Validation and Registration

Article 9 A project on the voluntary reduction of GHG emissions applying for registration shall help reduce carbon and increase sinks and be able to avoid and reduce GHG emissions or achieve greenhouse gas removal.

Article 10 A project on the voluntary reduction of GHG emissions applying for registration shall meet the following conditions:

(1) Being authentic, unique, and additional;

(2) Belonging to the fields supported by the project methodology issued by the Ministry of Ecology and Environment;

(3) Starting construction after November 8, 2012; and

(4) Meeting other conditions prescribed by the Ministry of Ecology and Environment.

Projects that have an obligation to reduce GHG emissions as stipulated by laws, regulations, and national policies, or projects that are included in the management of quotas for national and local carbon credits, shall not apply for registration as projects on the voluntary reduction of GHG emissions.

Article 11 A legal person or any other organization (“project owner”) applying for registration as a project on the voluntary reduction of GHG emissions shall prepare project design documents in accordance with the requirements of relevant technical specifications such as project methodology, and authorize a validation and verification institution to validate the projects.

The original records and management journals of the data and information involved in the project design documents shall be kept for at least ten years after registration of the emission reductions for the last phase of the project.

Article 12 Before applying for registration of a project on the voluntary reduction of GHG emissions, the project owner shall publicize the project design documents through the registration system, and be responsible for the authenticity, completeness, and effectiveness of the publicity materials.

When the project owner publicizes the project design documents, it shall simultaneously publicize the name of the validation and verification institution authorized by it.

The publicity period for project design documents is 20 working days. During the publicity period, the public may put forward opinions through the registration system.

Article 13 The validation and verification institution shall validate the following items of a project on the voluntary reduction of GHG emissions applying for registration in accordance with the relevant provisions of the state, and issue a project validation report, which shall be uploaded to the registration system and disclosed to the public at the same time:

(1) Whether it complies with relevant laws and regulations and national policies;

(2) Whether it belongs to the fields supported by the project methodology issued by the Ministry of Ecology and Environment;

(3) Whether the project methodology is selected and used properly;

(4) Whether it is authentic, unique, and additional; and

(5) Whether it meets the requirements of sustainable development and whether it has adverse effects on all aspects of sustainable development.

The project validation report shall include positive or negative project validation conclusions, and the explanation of the project owner on the handling of public opinions received during the publicity period.

The validation and verification institution shall be responsible for the compliance, authenticity, and accuracy of the project validation report, and make commitments in the project validation report.

Article 14 After the project validation report is issued by the validation and verification institution, the project owner may apply to the registration institution for registration as a project on the voluntary reduction of GHG emissions.

When applying for registration as a project on the voluntary reduction of GHG emissions, the project owner shall submit, through the registration system, the project application form, and the design document and validation report on the project uploaded by the validation and verification institution, and attach a letter of commitment responsible for the uniqueness of the project and the authenticity, integrity, and effectiveness of the materials provided.

Article 15 The registration institution shall examine the completeness and standardization of the materials submitted by the project owner, register the approved projects on the voluntary reduction of GHG emissions within 15 working days of receipt of the application materials, and disclose to the public the project registration and all the materials submitted by the project owner. If the application materials are incomplete or irregular, no registration sh......