October 31, 2018 – On October 28, the National Development and Reform Commission (NDRC), together with other eight government institutions, including the Ministry of Ecology and Environment (MEE) issued the “Action plan on the establishment of a market-oriented and diversified ecological protection compensation mechanism” (Fa Gai Xi Bu (2018) No. 1980).
In nine articles, the action plan identifies key pillars on which the mechanism is based on, the fourth of them mentions the review and improvement of the China Certified Emission Reduction (CCER) offset scheme as well as social and ecological co-benefits. It more specifically prioritises the use of forestry carbon sink projects as offsets for the national ETS. The status of China’s offset market has been uncertain since the NDRC suspended the CCER mechanism in March 2017. Additionally, article 4 encourages the development of carbon sink projects through other market-based mechanisms such as carbon-neutral and carbon-inclusive finance.
The establishment of the mechanism should be completed by 2020. Afterwards it will enter an optimisation phase lasting until 2022.
Source: http://zfxxgk.ndrc.gov.cn/web/iteminfo.jsp?id=16075 (Chinese)