Carbon Asset Management

The carbon market is a key policy tool used by the international community to address climate change. It aims to achieve the most cost-effective emission reduction solutions and national climate goals through market-based mechanisms.

Carbon Asset Business Overview

Carbon assets

Under the mandatory carbon emission trading mechanism or the voluntary carbon emission trading mechanism, environmental rights such as greenhouse gas emission rights or emission reductions that are issued by the government or certified by international official organizations and can be used for compliance trading or emission offsets.

Carbon Credits

Under the voluntary carbon emission rights mechanism, the emission reductions generated by the implementation of emission reduction plans. The enterprises invest and develop according to the certified methodology, and are certified and issued by relevant competent authorities. According to the different emission reduction methods and application fields, it can be divided into two major project types: emission avoidance/emission reduction and removal/storage. According to the different issuing entities, it can be divided into three types of mechanisms.

Carbon Credit Project Types

01
Avoid emissions / Reduce emissions

Avoid ecosystem loss or degradation

Avoid deforestation

Avoiding degradation of grasslands, wetlands and coasts

Technology-based emission reduction

New energy use

Waste Management

Methane Utilization

Raw material / Fuel conversion

02
Remove / Archive

Nature-based carbon storage

Afforestation and reforestation, forest management

Grassland, wetland or coastal restoration

Technology-based carbon removal

Direct Air Carbon Capture and Storage (DACCS)

Biomass Carbon Capture and Storage (BECCS)

Types of Carbon Credit Mechanisms

Independent third-party standards

Managed by non-governmental organizations, including the international Verified Carbon Standard (VCS) and the Gold Standard (GS).

Local regulations

Standards set by countries and regions, such as the National Certified Emission Reductions (CCER) and the California Compliance Offset Program in the United States.

International Mechanism

Established under international agreements such as the Kyoto Protocol and the Paris Agreement, including the Clean Development Mechanism (CDM) and the Sustainable Development Mechanism (SDM) currently under preparation.