Source: Asia Development Bank
Future Proof Climate Change Financing Guideline
An effective framework is crucial for managing climate finance projects. The project developed the Future Proof Climate Change Financing Guideline to advance climate action by setting clear project criteria, promoting technology adoption, and evaluating environmental benefits. Aligned with national climate goals, it offers a standardized approach to creating and assessing a robust project library.
By refining green finance frameworks, the guideline prioritizes projects in eight sectors: electricity, industry, transportation, buildings, methane, nitrous oxide, fluorinated gases, and carbon sinks. It also expands mitigation to include low-carbon services and adaptation to cover sponge city infrastructure, ecological restoration, and more.
The guideline’s assessment process includes project taxonomy, threshold evaluation, and technology analysis. By measuring technological advancements and environmental impacts, it ensures that funded projects deliver meaningful climate benefits. This approach supports the growth of climate finance nationwide, especially in pilot cities.
China Certified Emission Reduction Plus Guideline
Meanwhile, the China Certified Emission Reduction Plus Guideline, another output from the project, directs investment toward high-impact voluntary emission reduction projects. By applying strict evaluation criteria, it ensures that social capital backs projects with significant environmental and social benefits, accelerating the PRC’s journey to carbon neutrality.
Drawing from international practices like the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), and others, this guideline adheres to additionality, permanence, and no-double-counting principles, while considering PRC-specific contexts. It introduces innovative approaches for crediting period management, implementation, and digital Measurement, Reporting, and Verification (MRV).
By dividing the evaluation into initial and subsequent stages, the guideline allows for thorough project assessment. It mandates environmental monitoring throughout the project lifecycle. Clear evaluation criteria help investors identify high-quality projects. The digital MRV standard enhances efficiency and ensures data integrity through automated monitoring and reporting.