Core Viewpoint - The successful registration of the Dular Forest Carbon Sink CCER project in Arxan City, Inner Mongolia, highlights the region's advantages in carbon sink development and its contribution to the national carbon market [1][2]. Group 1: Project Overview - The Dular Forest Carbon Sink CCER project was developed by Arxan City Mulinsen Seedling Afforestation Co., Ltd. and has been registered in the national carbon market [1]. - Since the launch of the national voluntary greenhouse gas emission reduction trading market on January 22, 2024, only 41 forestry carbon sink projects have been publicly listed, with Inner Mongolia having only 3 projects [1]. - The project covers 83,000 acres of protective forest, with a clear land ownership and project boundary, and is expected to generate a total emission reduction of 576,294.66 tons of CO2 equivalent over a 40-year accounting period, averaging 14,407.37 tons of CO2 equivalent per year [1]. Group 2: Development Process - The project underwent a thorough preparation process, including expert site visits and the use of satellite remote sensing and ground monitoring data to accurately assess carbon sink volume [2]. - The project design document (PDD) was completed in May 2024, and the project was officially registered and publicly announced in July 2024 after passing various reviews [2]. - A comprehensive operational guideline covering "ownership confirmation - measurement accounting - market connection" has been developed, providing a practical reference for carbon sink development across the country [2].

Core Viewpoint - The national carbon market in China is expanding its coverage to include more industries, with significant policy advancements in 2023 aimed at enhancing carbon emissions trading and promoting low-carbon technologies [1][2]. Group 1: Carbon Market Expansion - The national carbon emissions trading market has officially expanded to include the steel, cement, and aluminum industries, following the power generation sector [1][2]. - The government aims to gradually include key products from the petrochemical, chemical, paper, and aviation industries into the carbon market starting in 2026 [1][2]. - The expansion follows a "mature first, include first" principle, with scientific assessments submitted to the State Council for approval [1][2]. Group 2: Industry-Specific Insights - The cement industry was prioritized for inclusion due to its mature production processes and data foundation, while the aluminum smelting sector has a relatively low direct carbon emission impact [2]. - Approximately 730 steel enterprises are engaged in annual carbon emissions accounting, with long-process steel companies accounting for 90% of total emissions in the sector [2]. - The chemical industry presents complexities in product inclusion due to the variety of products and their respective emissions profiles, with over 200 million tons of key products currently reported [3]. Group 3: Paper Industry Dynamics - The paper industry, while not yet included in the carbon market, has a significant relationship with carbon emissions due to its energy consumption patterns, with coal accounting for 75% of its energy use [4]. - The industry utilizes self-owned power plants, which are already included in the carbon market, leading to potential challenges in accounting for emissions from self-generated steam [5]. - Opportunities for the paper industry include enhancing energy efficiency and utilizing biomass in self-owned power plants, which can contribute to carbon reduction efforts [6][7]. Group 4: CCER Mechanism and Development - The CCER (China Certified Emission Reduction) mechanism currently allows for a 5% offset in the carbon market, with an estimated demand of approximately 400 million tons post-expansion [9][10]. - The existing CCER methodologies cover limited sectors, necessitating the development of additional methodologies to meet the growing demand for carbon credits [9][10]. - Expanding methodologies to include waste treatment and other sectors can facilitate low-carbon transitions and enhance the overall effectiveness of the carbon market [10].