China Launches New Carbon Reduction Trading Program

China has recently launched the China Certified Emission Reduction (CCER) program, aimed at allowing companies in certain industries to trade their carbon reduction numbers after participating in voluntary emission-cutting activities. This initiative, announced by Vice-Premier Ding Xuexiang, aims to complement the existing carbon credit trading market and facilitate the development of companies, particularly those in the clean energy sector, in contributing to the nation's green transition.

The CCER will cover four sectors initially: forestation, solar thermal power, offshore wind power, and mangrove vegetation creation. Companies involved in these sectors can register their accredited carbon reduction numbers in the CCER system and await transactions. The program will provide opportunities to improve the profitability of these sectors by enabling the sale of carbon credits.

According to Yang Pingjian, head of the environmental sociology bureau at the Chinese Research Academy of Environmental Sciences, the CCER program targets companies reliant on the sale of carbon credits for profitability, such as those involved in offshore wind power generation. Initially, the primary buyers are expected to be high-emission enterprises seeking to offset their emissions and companies looking to demonstrate corporate social responsibility.

Yang also highlighted the program's potential future expansion to allow individuals to purchase quotas to offset their carbon footprint. The revived CCER program, previously suspended in 2017, has been reintroduced following extensive research and aims to facilitate carbon reduction efforts for interested participants beyond the traditional market participants.