New projects that can generate carbon credits certified by the Chinese government – known as CCERs – have been unveiled for the first time since the CCER scheme relaunched in January.
Heavily emitting companies can trade CCERs (China Certified Emission Reductions) on the mandatory carbon market to meet part of their compliance obligations. Each credit corresponds to a tonne of CO2 reduced or avoided and is pegged to an activity such as certain types of renewable-power generation or tree planting.
The scheme had originally been launched in 2012 before being suspended in 2017 due to low transaction volumes and data quality.
The 33 newly registered projects, and potentially more, are expected to reduce or avoid approximately 8 million tonnes of CO2 equivalent during the period they are certified for, according to calculations by Dialogue Earth based on government data sorted by BJX, an energy media outlet.
During the CCER scheme’s suspension, credits remained tradable but no new projects were certified.
By the time the scheme was revived in January, the inventory of eligible projects had nearly depleted. The relaunch resumed the process for new projects to apply for certification and enter the market.
The new projects are developed under four methodologies issued by the Ministry of Ecology and Environment (MEE) at the relaunch: forestation, solar thermal power, offshore wind, and mangrove restoration. Offshore wind power is the most prominent, accounting for 19 of the 33 projects listed.
In July, the MEE introduced two new methodologies for public consultation – coal-mine gas recycling and energy-saving in road-tunnel lighting. The consultation phase has concluded, and the final versions of these documents are anticipated to be published soon.
Carbon market expert Wang Jun noted that some in the industry had expected livestock manure treatment to be included among the new methodologies. Wang explained that in China, the government already mandates composting as the minimum requirement for treating livestock and poultry manure. As composting is considered the baseline, methane avoidance from this process cannot be counted as an additional emission reduction.
Wang Jun also mentioned that trading of credits from the newly disclosed projects is likely to begin in November once they are officially issued.
Read Dialogue Earth’s earlier explainer on the voluntary carbon market.