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Offset Project

The GHG Offset Project is a mechanism for issuing credit to encouraging implementation of voluntary GHG emission reduction by entity. The emission reduction is calculated according to the difference between the GHG emitted in the baseline scenario and that in project scenario. The implementation of the GHG Offset Project shall follow the description of methodology designated by the EPA.

The application of the GHG Offset Project is divided into two stages: registration and issuance of credit. In the registration procedure, the applicant shall propose a suitable approval methodology to describe a project design document (PDD). All the description of PDD shall comply with the methodologies approved by the Clean Development Mechanism Executive Board (CDM EB) or the domestic circumstance methodologies recognized by the EPA. The PDD shall be validated via the verification bodies that the EPA recognized. Afterward, the applicant could provide the validated PDD, validation report and other related documents to further apply for the project registration to the EPA.

Issuance of credit procedure: The applicant shall implement and operate the registered PDD in accordance with description in the registered PDD including all physical features, then complete the monitoring report. The monitoring report shall be verified via the verification bodies that the EPA recognized. Afterward, the applicant could provide the verified monitoring report, verification report and other related documents to further apply for the issuance of credit to the EPA.

The methodology shall be approved by the Clean Development Mechanism Executive Board (CDM EB) and/or the EPA. Additionally, the applicant could submit the new methodology to the EPA: Methodology application procedure: The applicant shall propose the methodology draft and the evaluation report from a verification body to the EPA.

When the EPA receives the submission from the applicant, the committee shall assist the EPA by appraising the application for project registration, application for issuance of credit and application for new methodology. The committee shall review and make the final decision for each application.

Development Project Emission Offset Program

To accelerate the reduction of greenhouse gas emissions, environmental impact assessments (EIAs) are becoming increasingly important for development activities, including emission reduction technologies and emission offsetting. Therefore, this processing principle is established to provide reference for EIA committee members and to guide development units in carrying out offsetting operations. There are three key points in this processing principle:

Firstly, development units should propose the best available technologies that meet the principle of maximizing energy efficiency and minimizing greenhouse gas emissions based on the development category and characteristics. These proposals should be included in the environmental impact assessment document submitted to the EIA committee for review.

Secondly, after adopting the best available technologies, development units should commit to offsetting greenhouse gas emissions during the operation period according to this processing principle. The offsetting ratio of the incremental emissions should be at least 10% per year and should be executed for ten consecutive years, subject to review and determination by the EIA committee.

Thirdly, the offsetting process should proceed as follows: After the development activity is approved through the EIA review, the development unit should submit a greenhouse gas offset plan to the EPA. The offset sources can come from emission reduction quotas obtained through projects such as the greenhouse gas reduction and management act offset project, or from implementing greenhouse gas reduction measures that are not subject to EIA review, such as switching from coal or oil equipment to natural gas or biogas, replacing old boilers, replacing lighting or air conditioning with high-efficiency equipment, or replacing old motorcycles with electric motorcycles.

GHG Credits Management

The Greenhouse gas (GHG) emission reporting was a voluntary program introduced in 2004, which was incorporated into the Air Pollution Control Act in 2013, under which it was transformed into a mandatory program. After the“GHG Reduction and Management Act”(the Act) came into force, the “GHG Emission Reporting and Registration Management Regulations” (the regulation) was implemented under the Act in 2016, which includes the rule regarding the measurement of GHG source emissions, reporting, frequency, and verification process and other requirements of regulated emission entities.

Under the Act, GHG emissions of regulated emission entities are reported from 2015.