Measures for Operation and Management of Clean Development Mechanism Projects in China

I. General Provisions


Article 1 This measures is formulated in accordance with the provisions of the United Nations Framework Convention on Climate Change (hereinafter referred to as “the Convention”) and its Kyoto Protocol (hereinafter referred to as “the Protocol”) ratified and approved by China respectively, and the relevant decisions adopted by the Conference of the Parties, with a view to strengthening the effective management of Clean Development Mechanism (hereinafter referred to as “CDM”) projects by the Chinese Government, protecting China’s rights and interests, and ensuring the proper operation of CDM project activities.

Article 2 According to the Protocol, CDM is a project-based mechanism under which developed country Parties cooperate with developing country Parties in order to meet part of the GHG emission reduction obligations of the developed country Parties. The purpose of this mechanism is to assist developing country Parties in achieving sustainable development and in contributing to the realization of the ultimate objective of the Convention as well as to assist developed country Parties in achieving compliance with their quantified GHG emission limitation and reduction commitments. The core of the CDM is to allow developed country Parties, in cooperation with developing country Parties, to acquire “certified emission reductions (hereinafter referred to as “CERs”)” generated by the projects implemented in developing countries.

Article 3 CDM project to be implemented in China shall be approved by relevant departments under the State Council.

Article 4 The priority areas for CDM projects in China are energy efficiency improvement, development and utilization of new and renewable energy, and methane recovery and utilization.

Article 5 In accordance with the relevant decisions of the Conference of the Parties, the implementation of CDM projects shall ensure transparency, high efficiency and accountability.



II. Permission Requirements


Article 6 CDM project activities shall be consistent with China’s laws and regulations, sustainable development strategies and policies, and the overall requirements for national economic and social development planning.

Article 7 The implementation of CDM project activities shall conform to the requirements of the Convention, the Protocol and relevant decisions by the Conference of the Parties.

Article 8 The implementation of CDM project activities shall not introduce any new obligation for China other than those under the Convention and the Protocol.

Article 9 Funding for CDM projects from the developed country Parties shall be additional to their current official development assistance and their financial obligations under the Convention.

Article 10 CDM project activities should promote the transfer of environmentally sound technology to China.

Article 11 Chinese funded or Chinese-holding enterprises within the territory of China are eligible to conduct CDM projects with foreign partners.

Article 12 CDM project owner shall submit to the Designated National CDM Authority the following documents: CDM project design document, certificate of enterprise status, general information of the project, and a description of the project financing.