Chinese CER project due diligences

As part of the country’s twelfth five-year-plan, China has been paving the way toward a national ETS. Seven provincial and city-level pilot schemes have been launched to test the effectiveness of different policies with the aim of defining a unified, country-wide emission trading scheme by 2017. Under the EU-ETS, capped participants have been granted the option to offset part of their emission reduction obligations through the purchase of CCERs – carbon credits originated by GHG mitigation projects in China.

Demand for CCERs in the seven pilot regions is expected to be around 100 million CCER in 2015. As the market grows and consolidates into a national scheme later this decade, the demand side is expected to grow considerably.

Climate Focus, in collaboration with Climate Wedge, has been working on due diligence assignments for a portfolio of CCER projects since 2013. Key project types include hydropower, wind power, biogas and energy efficiency. The due diligence reports cover an assessment of the eligibility of the proposed projects under the CCER scheme, targeting aspects like additionality, emission reduction estimates and methodology applicability. Analysis of the overall Chinese ETS and specifically applicable CCER market regulation and project pipeline development is also covered as part of the due diligence assessments.