China has completed its first carbon credits transaction in its revamped voluntary carbon market for greenhouse gas reductions, marking a significant milestone in the nation’s efforts to combat climate change.
On Monday, the China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer, purchased 250,000 tonnes of carbon credits to offset its emissions. This move signifies CNOOC’s commitment to reducing its carbon footprint and aligns with China’s broader environmental objectives.
China’s carbon trading system comprises two main components: the compulsory national carbon trading market, known as the national Emissions Trading Scheme (ETS), and the voluntary carbon market, also referred to as the China Certified Emission Reduction (CCER) scheme.
Under the national ETS, the government sets emission caps for high-emitting entities and enterprises. Companies that exceed their emission allowances must purchase carbon allowances equivalent to their excess emissions. This system creates a financial incentive for companies to reduce their greenhouse gas output.
The voluntary carbon market allows companies to purchase carbon credits to offset their emissions voluntarily. One tonne of carbon credits equates to one tonne of carbon dioxide emissions. The recent transaction by CNOOC exemplifies the growing participation of major corporations in voluntary carbon offsetting initiatives.
The successful completion of this first deal in the revamped CCER scheme highlights China’s dedication to sustainable development and its proactive role in addressing global climate challenges. As more enterprises engage in carbon trading, China moves closer to achieving its emission reduction targets and fostering a greener economy.
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First carbon credits deal completed on China's voluntary carbon market
cgtn.com
