popular articles

China: Urgent coordination for the integrity of the carbon market

Zhang Xin calls for better coordination between organizations to avoid double certification in China's carbon and renewable energy markets.
Chine : Urgence de Coordination pour l'Intégrité du Marché du Carbone.

Please share:

China’s carbon market faces coordination challenges between different government agencies, notably concerning the dual certification of certain projects. Zhang Xin, Chief Economist at the National Center for Climate Change Strategy and International Cooperation (NCSC), recently stressed the importance of resolving these issues to maintain the integrity of the China Certified Emission Reduction (CCER) market and Chinese investment in renewable energy.

Problems with Dual Certification

Developers of solar thermal and offshore wind projects can currently obtain carbon credits from the CCER market while receiving renewable energy certificates (GECs) from the national green certificate market. This situation allows developers to make double claims for economic incentives, raising concerns about market integrity. Participants in the GEC and CCER markets, as well as international organizations, have expressed similar concerns. However, this is the first time that a Chinese government official has explicitly highlighted this problem and called for coordination to resolve it.

Importance of Market Integrity CCER

Zhang stressed that the integrity of the CCER market is crucial to China’s participation in global carbon pricing. At COP28, some European Union officials suggested that China’s carbon policies were still flawed. To be certified as CCERs, emissions reductions must be “additional”, i.e. they can only be achieved with the incentive provided by the carbon market. Solving this problem is also crucial if CCERs are to meet the requirements of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), an emissions regulation scheme under the aegis of the International Civil Aviation Organization (ICAO).

Integration of CCER and GEC markets

This double-claim problem has also triggered integrity concerns in the international renewable energy certificate markets. For example, RE100, an industry group of over 400 companies aiming to use 100% renewable electricity by 2050, has asked its members using GECs to submit additional evidence that the projects behind the GECs will not require CCER certifications. Zhang also called on the National Energy Administration (NEA) to improve its own GEC system. Any renewable project participating in the CCER market should be frozen and then cancelled from NEA’s GEC platform.

Towards enhanced coordination

To ensure that all environmental markets in China operate seriously and fairly, it is necessary for the carbon market, the GEC market and the electricity market to connect their databases and enable transparent information sharing. Carbon credits eligible for CORSIA were valued at $11.75/mtCO2e on June 4, while the CCER price was 96 Yuan/mtCO2e ($13.25/mtCO2e), according to data from Beijing Green Exchange. The integrity of the CCER market is crucial to China’s credibility on the global carbon pricing stage. Better coordination between government agencies and the establishment of transparent mechanisms are essential to guarantee the efficiency and reliability of China’s environmental markets.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Nigeria aims to increase its electricity production capacity by 4,000 MW by 2026 to meet the growing demand of the industrial sector, in a context of reforms and partnerships with international players.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
Paris releases a new €400mn funding package to support industrial projects aimed at reducing emissions under the France 2030 programme.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
The Czech Republic has ended its dependency on Russian oil after more than six decades, a major shift made in response to Russia's invasion of Ukraine.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Wind and solar energy accounted for nearly one-fifth of Türkiye’s electricity generation in 2024, according to an analysis by think tank Ember, driven by a strong increase in installed capacity.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
The French government plans to adopt within two weeks a decree outlining the decade’s energy objectives, restarting nuclear power and preparing for a parliamentary debate on energy sovereignty.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
The global electricity mix shifted in 2024 with 40.9% of production from low-carbon sources, according to Ember, driven by historic solar power growth.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.

Advertising