Chapter 1 General Provisions

Article 1 This Opinion is formulated to thoroughly implement Xi Jinping's Thought on Ecological Civilization, actively respond to climate change, help achieve the goals of carbon peak and carbon neutrality, advocate and promote the formation of a green and low-carbon production and lifestyle, and ensure the standardized and orderly operation of Shandong Province's carbon credit system.

Article 2 Carbon credit refers to the mechanism of controlling greenhouse gas emissions and increasing carbon sinks by quantifying or assigning certain values ​​based on the carbon credit methodology for government agencies, enterprises, institutions, social groups, other social organizations and individuals in the fields of green and low-carbon life, resource recycling, renewable energy development, natural carbon sink cultivation, engineering emission reduction, digital application, etc., and using commercial incentives, policy support, market transactions and other methods.

Article 3 This Opinion applies to the management of related activities of various entities that voluntarily participate in the Shandong Province Carbon Credit Pilot.

Article 4 The Shandong Province Carbon Credit System shall comply with relevant laws, regulations and policies; carbon credit management and trading shall follow the principles of voluntariness, fairness, openness, justice and integrity, and projects developed under the carbon credit mechanism shall be inclusive, quantifiable and additional.

Article 5 The Provincial Department of Ecology and Environment shall, together with relevant industry authorities, release carbon credit methodology to promote value transformation. The Provincial Department of Ecology and Environment shall manage the application, trading, and cancellation of carbon credit certified voluntary emission reductions, including the formulation of supporting policies and the management of carbon credit methodology.

The municipal ecological environment department shall cooperate in the management of carbon credit and promote the innovative development of carbon credit in the city according to actual conditions.

Enterprises, institutions, social groups, and other social organizations are encouraged to participate in methodology development and project application under the support and guidance of industry authorities, and provide channels for the consumption of carbon credit emission reductions and carbon credits.

Article 6 The Provincial Department of Ecology and Environment shall build a comprehensive management system for carbon credit in Shandong Province, manage "emission reduction projects", "emission reduction scenarios", methodology, etc., and be responsible for the review, issuance, registration, transfer, cancellation and recording of emission reductions, and connect data and information with the carbon credit management platform or program recognized by the municipal and above administrative authorities.

Article 7 The Provincial Department of Ecology and Environment shall establish a carbon credit expert committee to conduct standardized dynamic management of the expert database as required. The members of the expert committee are composed of experts and scholars in relevant fields at home and abroad, who provide expert opinions on the preparation of methodology and the approval of project emission reduction.

Article 8 Government agencies, enterprises, institutions, social groups, other social organizations and individuals can open carbon credit accounts in the Shandong Carbon Credit Integrated Management System, which are divided into institutional accounts and personal accounts for emission reduction management. Carbon credits are managed by the carbon credit management platform or program recognized by the administrative department at the municipal level and above.

Chapter II Methodology Management  Pulp Making System

Article 9 Guide and encourage enterprises and social forces to actively apply for emission reduction project methodologies in the fields of energy conservation and emission reduction, carbon reduction and sink enhancement, and use the carbon credit methodology issued by the national and Shandong provincial competent departments to calculate project emission reduction.

Article 10 Carbon credit methodology includes "emission reduction project" methodology and "emission reduction scenario" methodology.

Article 11 The methodology development subject (government agencies, enterprises, institutions, social groups, other social organizations and individuals) submits the methodology application form, text, preparation instructions and other relevant materials through the Shandong Carbon Credit Integrated Management System, and the Provincial Department of Ecology and Environment organizes experts to review and approve it before publishing and implementing it.

Article 12 The Provincial Department of Ecology and Environment shall organize the revision of the methodology according to the operation of carbon credit, construction and development needs, etc.

Chapter 3 Project Demonstration and Emission Reduction Accounting Paper Pulp Mould

Article 13 The owner of the "emission reduction project" may apply for the project emission reduction by himself or entrust other institutions as the project applicant.

Article 14 The Provincial Department of Ecology and Environment shall organize experts to demonstrate the applied emission reduction projects together with the competent departments of the industry. The projects that pass the demonstration shall be published after public announcement, and the publicity time shall not be less than 5 working days.

Article 15 After the "emission reduction project" is officially put into operation, it can apply for emission reduction verification in the Shandong Provincial Carbon Credit Integrated Management System, and submit relevant materials such as emission reduction application form and accounting report. Local governments are encouraged to grant additional carbon credits to emission reduction projects and manage them.

Article 16 The "emission reduction scenario" principle adopts points exchange and other methods to promote carbon credit consumption, and retain relevant certification materials.

Article 17 All main units are encouraged to actively create carbon credit emission reduction scenarios, explore the establishment of consumer incentive and reward mechanisms within carbon credit scenarios, and promote carbon credit emission reduction scenarios with good operation at the provincial level.

Article 18 The Provincial Department of Ecology and Environment organizes experts to review the implementation of "emission reduction projects". After the review is passed, the project emission reduction will be registered and issued in the Shandong Carbon Inclusive Integrated Management System, with the whole year as the minimum time unit.

Article 19 The Provincial Department of Ecology and Environment organizes experts to track and inspect and evaluate the operation of the application project, and revise the emission reduction according to the results of the tracking and inspection and evaluation.

Article 20 The applicants of "emission reduction projects" and "emission reduction scenarios" shall promise not to repeat the application for the same project and emission reduction in other voluntary greenhouse gas emission reduction systems at home and abroad.

Chapter 4 Emission reduction trading and absorption

Article 21 Certified emission reductions shall be traded in accordance with relevant regulations on the provincial public resource trading platform. Under the guidance of the Provincial Department of Ecology and Environment, the trading platform shall formulate certified emission reduction trading rules and be responsible for the operation and maintenance of the trading system.

Article 22 Trading entities such as government agencies, enterprises, institutions, social groups, other social organizations and individuals that meet relevant regulations may participate in certified emission reduction trading after registering on the trading platform.

Article 23 The transaction of certified emission reductions shall generally be carried out through open bidding, agreement transfer, price transfer or other methods prescribed by national laws and administrative regulations.

The standards and methods for charging service fees for certified emission reduction transactions shall be submitted by the trading platform to the price authorities for approval in accordance with procedures.

Article 24 The certified emission reductions generated by "emission reduction projects" can be used for carbon neutrality of large-scale activities through donations, paid transfers, etc. Encourage the obligor of ecological environmental damage compensation to voluntarily purchase certified emission reductions for alternative repairs on the premise of complying with relevant provisions on ecological environmental damage compensation management. Explore the use of certified emission reductions in carbon footprint application scenarios.

Carbon credits can be used to exchange carbon inclusive goods, services and other carbon inclusive incentives.

Article 25 The emission reductions used to fulfill voluntary emission reduction obligations, carbon neutrality of large-scale activities, etc. must be cancelled in the Shandong Provincial Carbon Inclusive Integrated Management System; the emission reduction offsets completed in the province before the implementation of this opinion shall be handled in accordance with this opinion.

Article 26 Government agencies, enterprises, institutions, social groups, other social organizations and individuals are encouraged to voluntarily purchase emission reductions to offset the carbon emissions generated by their own activities; the development entities and applicants of the project are encouraged to voluntarily donate or cancel emission reductions to jointly build a good atmosphere for low-carbon public welfare.

Chapter V Supervision and Management

Article 27 The Provincial Department of Ecology and Environment shall publish information such as carbon credit methodology, certified emission reductions, cancellation of emission reductions, and the list of expert committees to the public.

Article 28 The project owner is responsible for the authenticity, accuracy, and additionality of the emission reductions. The organizer of the emission reduction scenario is responsible for the authenticity and accuracy of the carbon credits.

Article 29 If the carbon credit participants such as government agencies, enterprises, institutions, social groups, other social organizations, third-party technical service agencies, and individuals have committed illegal and irregular acts such as fraud; relevant departments and staff have neglected their duties, abused their powers, used their positions to seek improper benefits, and disclosed the commercial secrets and personal privacy of relevant units, they shall be dealt with in accordance with laws and regulations.

Article 30 The public is encouraged to supervise carbon credit related activities.

Chapter VI Supplementary Provisions

Article 31 The following terms in this opinion have the following meanings:

Greenhouse gases: natural and artificial gaseous components in the atmosphere that absorb and re-emit infrared radiation, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).

Carbon credit emission reduction: refers to the quantification of the carbon emission reduction effect of Shandong Province's carbon credit application projects in accordance with the published methodology, and the emission reduction confirmed in the Shandong Province Carbon Credit Integrated Management System after approval. The unit is "tons of carbon dioxide equivalent (tCO2e)".

"Emission reduction project": refers to a project that can generate carbon credit emission reductions implemented by project owners such as government agencies, enterprises, institutions, social groups, and other social organizations.

"Emission reduction scenario": refers to the behavior of individuals participating in a green and low-carbon lifestyle in the fields of clothing, food, housing, transportation, and use.

Carbon credits: Carbon credits are generally generated by individuals participating in "emission reduction scenarios" and can be used as a certificate for redeeming rights and interests such as goods and services.

Article 32 This opinion shall come into effect on March 15, 2025 and shall be valid until March 14, 2028.