• Document Number：No. 3 [2015] of the Shanghai Municipal Development and Reform Commission
• Area of Law： Government Affairs
• Level of Authority： Local Regulatory Documents
• Date issued：01-08-2015
• Effective Date：01-08-2015
• Status： Effective
• Issuing Authority： Other Institutions of Shanghai Municipality

Notice of the Shanghai Municipal Development and Reform Commission on the Provisions on the Use of Relevant Offsetting Mechanism during the Pilot Program of Carbon Emission Trading in Shanghai Municipality
(No. 3 [2015] of the Shanghai Municipal Development and Reform Commission)
All pilot enterprises and relevant entities:
In accordance with the relevant requirements of the Pilot Measures of Shanghai Municipality for the Management of Carbon Emission and the Plan of Shanghai Municipality for the Allocation and Management of Carbon Emission Quotas from 2013 to 2015, to standardize the use of the relevant offsetting mechanism in the carbon emission trading mechanism in Shanghai, maintain the smooth operation of the said mechanism, and practically realize effective carbon emission reduction, you are hereby notified of the matters relating to the use of the offsetting mechanism during the pilot program of carbon emission trading in Shanghai as follows:
I. Offsetting Mechanism
Pilot enterprises engaging in carbon emission trading in Shanghai may use a certain proportion of Chinese certified emission reduction (CCER) for the payment of quotas. When payment is made, one ton of CCER is equivalent to one ton of carbon emission quota.
II. Use Conditions
When a pilot enterprise in Shanghai uses CCER for the payment of quota, it shall meet all the following conditions:
(1) When payment is made, the proportion of CCER used shall not exceed 5% of the quota obtained by the pilot enterprise through allocation this year.
(2) The CCER that may be used for offsetting shall be the actual emission reduction occurred after January 1, 2013. The CCER within the discharge boundary of pilot enterprises in Shanghai shall not be used for the payment of quota in Shanghai.
(3) The CCER used for offsetting shall be uniformly registered in accordance with the relevant provisions of the state.
III. Offsetting Procedures
When a pilot enterprise uses CCER for the payment of quota, it shall submit the application and relevant materials in a timely manner in accordance with the relevant requirements of the National Development and Reform Commission and the Shanghai Municipal Development and Reform Commission. Upon the examination of the Shanghai Municipal Development and Reform Commission, qualified CCER may be used for the payment of quota, and shall be recorded in the carbon emission quota registration system in Shanghai. The specific operating procedures for offsetting will be announced in a separate notice.
All pilot enterprises and relevant entities shall effectively conduct the work on the use of the carbon emission offset mechanism in Shanghai, so as to ensure the smooth implementation of carbon emission administration and trading in Shanghai.
Shanghai Municipal Development and Reform Commission
January 8, 2015