China: Guangdong DRC plans to cancel Category 3 CCER credits

The Guangdong Development and Reform Commission (DRC) will publish a new policy in the near term to restrict credits from China Certified Emission Reduction (CCER) projects and cancel Category 3 CCER (pre-CDM) credits, market sources said.

There was indeed a draft about this and it was under revise at the moment, a source closed to the Guangdong DRC told ICIS on Wednesday.

As Guangdong is one of the largest pilot emission trading scheme (ETS) in China, such new regulations would impact pre-CDM project developers in terms of market demand, a national CCER developer told ICIS on Wednesday. In addition, the development of some CCER projects may be delayed.

The Guangdong DRC may also cancel credits of hydro projects and waste energy recovery projects, market sources said.

Multiple pilot ETS in China (e.g. Beijing, Hubei, etc.) have rigid restrictions on CCERs while Guangdong only requires that 70% of applied CCERs should be generated inside Guangdong, which is quite tolerant in China. Kun Yang