The First Transaction for Voluntary Greenhouse Gas Emission Reduction in China
2024-1-24
On January 22, China¡äs first transaction for voluntary greenhouse gas emission reduction was completed. This launch marks the increasingly improved construction of China¡äs carbon market, and the diversified carbon market system will further enhance the country¡äs green and low-carbon development level.
China National Petroleum Corporation (CNPC) has purchased 250,000 tons of China Certified Emission Reduction (CCER) this time, which will be used to offset greenhouse gas emissions in energy production. One ton of CCER can offset one ton of carbon dioxide emissions. The voluntary emission reduction mechanism for greenhouse gases is a carbon offset mechanism, which allows controlled emission enterprises to purchase certified quantities from enterprises that implement "carbon offset" activities to offset their own carbon emissions.
China¡äs carbon trading is mainly divided into two parts. One is the emissions trading, where the state sets emission limits for some key carbon emission units or enterprises. If they exceed this limit, they need to purchase corresponding allowances to offset its excessive carbon emissions. The voluntary emission reduction trading market is an institutional innovation that mobilizes the whole society to participate in the action of reducing greenhouse gas emissions. It is conducive to promoting the formation of a national carbon market system that complements and interconnects mandatory and voluntary carbon markets. Promoting the construction of the voluntary emission reduction trading market is conducive to supporting the development of projects such as forestry carbon sinks, renewable energy, methane emission reduction, energy conservation and efficiency, and encouraging a wider range of industries and enterprises to participate in greenhouse gas emission reduction actions.
According to predictions from China Beijing Green Exchange, if referring to the scale of the EU carbon market, after China¡äs carbon market is financialized in the future, with its allowance of 7 billion to 8 billion tons, the annual trading volume is expected to exceed 10 billion tons, and the trading volume is expected to exceed 1 trillion yuan.
China National Petroleum Corporation (CNPC) has purchased 250,000 tons of China Certified Emission Reduction (CCER) this time, which will be used to offset greenhouse gas emissions in energy production. One ton of CCER can offset one ton of carbon dioxide emissions. The voluntary emission reduction mechanism for greenhouse gases is a carbon offset mechanism, which allows controlled emission enterprises to purchase certified quantities from enterprises that implement "carbon offset" activities to offset their own carbon emissions.
China¡äs carbon trading is mainly divided into two parts. One is the emissions trading, where the state sets emission limits for some key carbon emission units or enterprises. If they exceed this limit, they need to purchase corresponding allowances to offset its excessive carbon emissions. The voluntary emission reduction trading market is an institutional innovation that mobilizes the whole society to participate in the action of reducing greenhouse gas emissions. It is conducive to promoting the formation of a national carbon market system that complements and interconnects mandatory and voluntary carbon markets. Promoting the construction of the voluntary emission reduction trading market is conducive to supporting the development of projects such as forestry carbon sinks, renewable energy, methane emission reduction, energy conservation and efficiency, and encouraging a wider range of industries and enterprises to participate in greenhouse gas emission reduction actions.
According to predictions from China Beijing Green Exchange, if referring to the scale of the EU carbon market, after China¡äs carbon market is financialized in the future, with its allowance of 7 billion to 8 billion tons, the annual trading volume is expected to exceed 10 billion tons, and the trading volume is expected to exceed 1 trillion yuan.