China is working on the policy framework for cross-border carbon trading under Article 6 of the Paris Agreement and considering launching an international initiative for high-quality carbon credit co-operation, ecology and environment vice-minister Li Gao said on 21 October.
The announcement comes as China accelerates an expansion of its voluntary carbon market, known as the China Certified Emission Reduction (CCER) programme, which relaunched in January 2024 after a six-year suspension.
The CCER mechanism allows eligible projects to convert verified emissions reductions and carbon removals into tradable credits that can be sold in the voluntary carbon market. As of 16 October, 44 projects had completed registration under the CCER scheme, with registered emissions reductions exceeding 25mn t of CO2 equivalent (CO2e). Cumulative trading volumes have now surpassed 24mn t CO2e, with the value of all transactions approaching 2bn yuan ($299.6mn), according to Li.
China plans to continue broadening the scope of projects eligible for CCER credit issuance, targeting coverage of all major sectors by 2027. Future methodologies could include waste treatment and utilisation, industrial energy efficiency, carbon removal, and other low-carbon, zero-carbon and negative-emissions projects, Li said. Expanding project types would diversify carbon credit supply and increase market liquidity as demand grows.
The latest comments follow China's public consultation on 16 October for 11 new CCER methodologies covering green fuels, energy storage, circular economy projects and transport electrification.
The proposed methodologies could generate 35mn-40mn t/yr of additional CO2e emissions reductions by 2030, significantly increasing credit supply and broadening participation across emerging decarbonisation sectors.
