What offshore investors need to know about the relaunch of China’s voluntary carbon market

Voluntary carbon markets (VCMs) have an important role to play in supporting the transition to a low-carbon economy. Carbon credits are used to offset a corresponding volume of greenhouse gas emissions.

VCMs are developing at different speeds according to different standards. VCMs must address two key issues: integrity and fragmentation.

The long-awaited relaunch of China’s VCM, the China Certified Emissions Reduction (CCER) scheme, occurred in January 2024. The new CCER scheme is a critical step towards China meeting its target to peak emissions by 2030 and be carbon neutral by 2060. This alert describes what you need to know about the relaunch of China’s VCM and the potential opportunities for offshore investors.