China's carbon market for greenhouse gas reductions, known as the China Certified Emission Reduction (CCER) scheme, was relaunched on Monday, allowing enterprises to trade carbon credits voluntarily.
After a pause in 2017, China has introduced multiple regulations to strengthen the CCER's regulatory framework. As an important supplementary mechanism to the national carbon-trading market, the CCER is set to play a significant role in achieving the nation's emissions reduction and renewable energy goals.
Under the CCER, carbon-emitting companies compensate credit-holding entities for carbon credits to offset their own emissions. Currently, the trading market is open primarily to entities in four major fields: afforestation, solar power generation, offshore wind power generation, and mangrove planting.
Green energy producers can profit by selling carbon credits, helping to offset high operation or maintenance costs, according to Yang Pingjian, a director at the Chinese Research Academy of Environmental Sciences.
Since the national carbon market began online trading in 2021, over 2,000 power companies with emissions exceeding 4 billion tonnes per year have participated, making it the world's largest market in terms of greenhouse gas emissions covered.
As a market-based emission reduction tool, the carbon market facilitates the optimal allocation of resources and guides emission control companies in their low-carbon transformation.
Reference(s):
China's voluntary carbon market for emission reductions reopened
cgtn.com
