EnvironmentalDefenseFundChina GHG Voluntary EmissionReduction Program (CCER program)Fact SheetAs a supplemental option for the national and local compliance carbon markets,China GHGVoluntary Emission Reduction Program (CCER program)is able to help enterprises coveredby compliance carbon markets fulfill their compliance obligation at a lower cost.CCER isalso an important instrument for business or social activities that aims to achieve carbonneutrality for offsetting their hard-to-reduce emissions.Meanwhile,the financial benefitsgenerated from the CCER projects can also incentivize ambitious emission reductions in thesectors not covered by compliance carbon markets,thereby accelerating the application ofmore low-cost emission reduction technologies and lowering the overall social emissionreduction costs.In 2012,the National Development and Reform Commission (NDRC)published the InterimMeasures on the Management of the Greenhouse Gas voluntary Emission ReductionProgram and the Guidelines on Validation and Verification of Greenhouse Gas VoluntaryEmissions Reduction Projects.In 2015,the national registry of Voluntary Carbon EmissionReductions was launched,marking the official start of trading for China's GHG VoluntaryEmission Reduction Program.In 2017,NDRC suspended the new project development andcredits issuance under the previous China's voluntary greenhouse gas emission reductionprogram (the previous CCER program).In 2018,the responsibilities of addressing climatechange were transferred from the NDRC to the Ministry of Ecology and Environment (MEE).The competent authority of managing the China GHG Voluntary Emission ReductionSince the launch of previous CCER program in 2012,over 1300 projects have beenregistered,covering various project scopes such as energy,waste disposal,agriculture,andafforestation.It is estimated that the annual emission reduction exceeds 100 million tonnes.The issued CCER credits is about 77 million tonnes.As of the end of December 2022,thecumulative trading volume of CCER is about 450 million tonnes,and the cumulativetransaction value is about 6 billion yuan.In 2021,approximately 190 key emission entities inthe first compliance period of the national carbon market used approximately 32 milliontonnes of CCER for offsetting their compliance obligation.Voluntary greenhouse gasemission reduction transactions have made positive contributions to promoting the low-costachievement of carbon reduction goals in the entire society and serving green and low-carbon development.Since the previous CCER program was launched in 2012,the programhas made a positive contribution to achieving carbon emission reduction targets with lowersocial costs and accelerating the green and low-carbon development.On October 19th,2023,the MEE released the Measures for the Administration ofGreenhouse Gas Voluntary Emission Reduction Trading (Trial),marks the launch of thenew CCER program,which has become one of the crucial enablers for achieving China'scarbon peaking and carbon neutrality goals,as well as China's contribution for global climategovernance.On October 24th,2023,the MEE released the first batch of 4 projectmethodologies that outlined the prioritized support project types under the new CCERprogram,including:afforestation carbon sink,grid-connected solar thermal powergeneration,grid-connected offshore wind power generation,and mangrove vegetationcreation.On October 25th,2023,the MEE released the Notice on Work Arrangements ofGreenhouse Gas Voluntary Emission Reduction Program,which is the institutionalarrangements for the emission reductions issued under the previous CCER program.OnJanuary 22nd,2024,the new CCER program was officially launched.EnvironmentalDefenseFundKey ElementsKey ElementsNew CCER ProgramPrevious CCER ProgramContribute to the achievement ofClimate GoalChina's carbon peaking andN/Acarbon neutrality goalsCarbon Dioxide(CO2),Methane(CHA),Nitrous Oxide (N2O),Carbon Dioxide(CO2),MethaneCovered GHGsHydrofluorocarbons (HFCs),(CH),Nitrous Oxide (N2O),Hydrofluorocarbons (HFCs),Hexafluoride (SF6),NitrogenPerfluorocarbon (PFCs),andTrifluoride (NF3).Sulfur Hexafluoride (SF6).Released by MEE.First batch of projectmethodologies are including:Applied by project owners andconnected solar thermal powerapproved by the NDRC.Methodologiesgeneration,grid-connected200 methodologies'wereoffshore wind power generation,approved from 2013-2016.and mangrove vegetationcreation.The national registrationinstitution manages the registry.Before the establishment of thenational registration institution,The Registry of the China GHGRegistrythe National Center for ClimateVoluntary Emission ReductionChange Strategy andProgram.International Cooperation(NCSC)assumes the managingrole.The national trading institutionmanages the trading system.TradingBefore the establishment of thePlatformnational trading institution,the9 local exchangesChina Beijing Green Exchangeassumes the managing role.Validation andApproved jointly by the MEE andVerificationthe State Administration for12 verification bodies approvedBodiesMarket Regulation(SAMR).by the NDRC.Violation of the measures will beordered for rectification,beimposed fines or sanctions.Thoserefuse supervision andViolation of the measures will bePenaltiesinspection,or project ownersordered for rectification or cancelproviding falsified materialsthe registration.couldbe fined not less than10,000 RMB but no more than1 173 of which were adopted or modified from Clean Development Mechanism (CDM),27 were newly developedmethodologies.