Ruling Regulation
Measures for the Operation and Management of CDM Project in China is the ruling regulation in China for all CDM Projects. The Interim Measures was first released in June 2004 and then amended and delivered/entered into force in October 2005
General Rules
CDM project activities must be approved by relevant authorities under the State Council
Priority areas for CDM projects are energy efficiency improvement, development and utilization of new and renewable energy, and methane recovery and utilization
Implementation of CDM project activities shall ensure transparent, efficient and traceable responsibilities
Open to all other types of projects as long as international rule allows (including sink project, N2O and HFC-23)
Admission Requirements
CDM project activities shall be in line with China¡¯s laws and regulations, and meet sustainable development strategies/policies and other general requirements as requested by national economic and social development plans
No new obligation shall be introduced for China other than those under the Convention and the Protocol
Funds from developed country Parties shall be additional to the current ODA and their fund obligations under the Convention
Project activity should promote the transfer of environmentally sound technologies
Project owner shall be wholly Chinese enterprise or Chinese holding enterprise
CDM project owner shall submit to the CDM Designated National Authority: Application Form; PDD, certificate of enterprise status, as well as other relevant information like brief description of the constructionproject and descriptions of project financing
China¡¯s CDM Institutional Arrangements
National Coordination Committee on Climate Change (NCCCC): policy making and coordinating CDM-related issues
National CDM Board: under NCCCC, it is co-chaired by the National Development and Reform Commission (NDRC) and Ministry of Science and Technology(MOST) and vice chaired by Ministry of Foreign Affairs (MOFa). Board members consist of Ministry of Finance (MOF), Ministry of Agriculture (MOA), State Environmental Protection Administration (SEPA), and China Meteorological Administration (CMA). Main functions include reviewing and assessing CDM projects
Office of the NCCCC: hosted by NDRC, it is the secretariat of the NCCCC and NCB with responsibilities of organization of the review of CDM application documents.
CDM Designated National Authority: the National Development and Reform Commission (NDRC) is the DNA of CDM in China. Main functions include: receives CDM applications from project owners, issues a ¡°Letter of No Objection¡± to the buyer if required, and issues the ¡°Letter of Approval¡± for the CDM project.
Approving Procedures
- The project proponent, together with its foreign partner, submits the project application and all required documentation to the DNA. Relevant local and national government departments may provide assistance to enterprises.
- The DNA requests an expert review of the proposed project by relevant organizations, which should be conducted within 30 days.
- If the application passes the expert review, it is then submitted to the National CDM Board, which then makes the decision on whether or not the project should be approved.
- Based on the recommendations from the board, the DNA, jointly with MOST and the MFA, makes a final decision and then issues a letter to the project proponent.
- The total review time is usually 50 days, which consists of 20 days when the application is being reviewed by the DNA and 30 days for the expert review. If the DNA cannot make its decision within the 20-day period, upon approval from the chair or the vice chair, it may lengthen the time by another 10 days, thus extending the total time to 60 days. The project applicant would be informed of such an extension and given the reason why it was needed.
Revenue from CDM Projects
Levies by the government:
HFC23 -- 65%
N2O -- 30%
Priority and others -- 2%
The levies collected will be used for climate relevant activities. The detailed guideline will be set up by MOF, in consultation with NDRC and others.
Unilateral projects
To encourage the development of additional projects, the newly issued measures indicate that if a foreign CERs buyer has not been found by the time a project is submitted for approval (i.e., the CER cost has not yet been determined), then the project design documentation must indicate that the emissions reduction produced by the project will be transferred to China¡¯s national emissions reduction account. Then these reductions can only be transferred out of the account with approval from the DNA. |
