China has taken a significant step forward in its commitment to reducing greenhouse gas emissions by relaunching its voluntary carbon market, the China Certified Emission Reduction (CCER) scheme, on Monday. This move allows enterprises to trade carbon credits voluntarily, marking a milestone in the nation’s environmental efforts.
The CCER, initially paused in 2017, has been revitalized following the introduction of new regulations aimed at strengthening China’s regulatory frameworks. The updated policies are expected to enhance transparency and efficiency within the carbon market, encouraging more enterprises to participate.
As a vital supplementary mechanism to China’s national carbon trading market, the CCER plays a crucial role in achieving emissions cost reductions and promoting renewable energy initiatives. Under this scheme, carbon-emitting companies can offset their emissions by purchasing carbon credits from credit-holding entities. Currently, the trading market is open to entities in four key sectors: afforestation, solar power generation, offshore wind power generation, and mangrove planting.
Green energy producers stand to benefit significantly from this arrangement. According to Yang Pingjian, a director at the Chinese Research Academy of Environmental Sciences, these producers can offset high operation and maintenance costs by selling carbon credits, thereby making green energy projects more financially viable.
China’s commitment to carbon reduction is further evidenced by its national carbon market, which commenced online trading in 2021. This market includes over 2,000 power companies, covering an estimated 4 billion tonnes of carbon emissions per year, making it the world’s largest in terms of greenhouse gas emissions covered.
The carbon market serves as a market-based emission reduction tool that facilitates the optimal allocation of resources. It guides emission control companies towards low-carbon transformation, aligning with global efforts to combat climate change.
The relaunch of the CCER scheme underscores China’s dedication to sustainable development and its proactive role in addressing environmental challenges. By incentivizing emission reductions and supporting renewable energy projects, China is making strides towards its goal of achieving carbon neutrality.
Reference(s):
China's voluntary carbon market for emission reductions reopened
cgtn.com
