China approves first batch of domestic offsets

24 January 2014 14:22 Source:ICIS

Two wind power projects in northwest China are the first to receive approval for domestic offsets from the government, according to a source at a local carbon consulting firm assisting project developers to apply for these credits.

The the National Development and Reform Commission (NDRC), the body in charge of country’s emission trading systems (ETS), held its first conference to verify and approve Chinese certified emission reductions (CCERs) on 9 January. Four projects, all developed by state-owned energy corporations, applied. The NDRC has not made the results public.

Companies covered by China’s pilot ETS’ can to varying degrees use offsets instead of, and usually at a lower cost than, allowances to cover their emissions and comply with the Chinese ETS‘ rules. The Beijing and Shanghai pilots allow covered entities to cover 5% of their compliance need via offsets, whereas the other four platforms, Guangdong, Shenzhen, Tianjin, and Hubei, permit 10%. The eligibility of offset use within the Chongqing scheme remains to be confirmed.

CCER projects developed by both state-owned and private companies are waiting for NDRC approval. “Those [projects] developed by the state-owned companies are on the priority of the NDRC’s approval list,” said the carbon consultancy source. Ling Ma

By Ling Ma