Companies in China must comply with the CCER framework, impacting operations and strategy. The Ministry of Ecology and Environment oversees the program, focusing on afforestation, solar, wind power, and mangrove creation. Trading carbon credits offers revenue opportunities and transparency.
Impact of CCER Framework on Companies in China
Companies in China face challenges in compliance, trading, and reporting within the CCER framework, influencing their operations and strategic goals. The program, overseen by the Ministry of Ecology and Environment, emphasizes afforestation, solar, wind power, and mangrove creation to drive innovation and revenue while ensuring accuracy and transparency.
Opportunities and Risks for Companies
The CCER program presents companies in China with opportunities for growth and innovation, as well as compliance considerations impacting their financial and operational aspects. Sectors like afforestation, solar thermal power, offshore wind power, and mangrove vegetation creation offer avenues for registering carbon reduction credits in the CCER system for trading purposes.
Regulation and Market Developments
The Ministry of Ecology and Environment (MEE) oversees the CCER program, aiming to enhance transparency and accuracy in project details and carbon reduction practices. The program’s market scope extends to high-emission enterprises and individuals, allowing for voluntary carbon credit purchases to offset emissions. Recent transactions, such as CNOOC’s purchase of carbon credits, indicate the market’s initial activity and potential growth.
Source : 2024 Tax Incentives for Manufacturing Companies in China – Thailand China Business News