scheme. scheme will sector/industry emission Covered use adapted level. reductions entities in the CDM from Chinese pilot methodologies, The NDRC uncovered ETSs cannot which will will review sectors. develop or include the emissions generate same or factors CCERs similar This was annually. developed within the additionality Revisions to under China’s geographic tests as the emissions 12th Five-Year scope of the CDM. factors will Plan pilot apply to all schemes. which new projects specifies plans and those to develop a Projects can being renewed. carbon trading be located It is not market to help around confirmed reduce GHG China, not the emissions. The just in ETS revisions to the scheme rules zones. emissions were factors will established in The CCERs affect 2012, and the covers a wide baselines for market range of existing commenced projects. emissions with the pilots. sources including Baselines can The offsets are renewables be only be issued by and reviewed and China’s renewables in revised at National a variety of renewal. This Development sectors, crediting and Reform fugitive duration is the Commission emissions, same as the (NDRC) under waste, CDM—a a voluntary, afforestation, single 10-year bamboo crediting forest carbon period or a Chinese offset sinks and seven year program that agriculture. It period uses either also includes (repeatable scope for twice). Carbon HFC-23 and sink projects methodologies, N2O may have or adapted industrial gas different CDM ones. offsets. arrangements. The NDRC must approve
emission reductions from uncovered sectors. This was developed under China’s 12th Five-Year Plan which specifies plans to develop a carbon trading market to help reduce GHG emissions. The scheme rules were established in 2012, and the market commenced with the pilots. The offsets are issued by China’s National Development and Reform Commission (NDRC) under a voluntary, Chinese offset program that uses either methodologies, or adapted CDM ones. The NDRC must approve renewables scheme. Covered entities in the Chinese pilot ETSs cannot develop or generate CCERs within the geographic scope of the pilot schemes. Projects can be located around China, not just in ETS zones. The CCERs covers a wide range of emissions sources including renewables and in a variety of sectors, fugitive emissions, waste, afforestation, bamboo forest carbon sinks and agriculture. It also includes scope for HFC-23 and N2O industrial gas offsets. scheme will use adapted CDM methodologies, which will include the same or similar additionality tests as the CDM. sector/industry level. The NDRC will review emissions factors annually. Revisions to emissions factors will apply to all new projects and those being renewed. It is not confirmed the revisions to the emissions factors will affect baselines for existing projects. Baselines can be only be reviewed and revised at renewal. This crediting duration is the same as the CDM—a single 10-year crediting period or a seven year period (repeatable twice). Carbon sink projects may have different arrangements.
CCA_CFIStudyPublicReportHTMLAppendixA.docx