Abstract:

Objective: A systematical analysis was conducted on the advanced model of VCS market operation for 16 years, and summarize practical experiences in VCS market. Moreover, a series of problems exposed in the development process of the VCS market are deeply considered to form inspirations for the trading market of China's national voluntary emission reduction of greenhouse gas, in the hope of providing a theoretical basis for formulating relevant policies by the national competent authorities. Method: Based on the inductive analysis method, historical research method and comprehensive analysis method, the operation mechanism of the Verified Carbon Standard (VCS) market as an important component of the global voluntary carbon market was explored in terms of organizational framework, institutional system, project development process, registration and trading rules. Result: It was found that the VCS market has accumulated rich practical experiences in implementing gradual institutional changes, following the principle of openness and transparency, improving the environmental integrity of carbon credit, focusing on the synergy of projects, and building standardized digital technology applications for trading platforms. At the same time, the inconsistency of project prediction methods and the used tools appeared in the development process of the market has led to the problem of baseless carbon credit. The defective supervision mechanism of Verra has resulted in exaggeration of carbon credit and the lack of information disclosure on carbon credit of Verra has led to the asymmetry of market information, these problems are more worthy of consideration and prevention. Conclusion: 1) The inspirations of the VCS market to the construction of CCER market can be summarized into five aspects: First, paying attention to the updating of project rules and improve the quality of carbon credit; Second, strengthening the management of validation and certification bodies to improve the quality of carbon verification; Third, establishing an open and transparent project information disclosure system; Fourth, encouraging the development of CCER projects with synergistic benefits; Fifth, establishing a standardized CCER market and developing a carbon pricing mechanism. 2) 5 suggestions were made for CCER market construction: First, we should give play to the top-level design role of the national competent authorities and accelerate the introduction of relevant policies, systems and regulations; Second, unifying the CCER trading rules of the pilot carbon market, establishing a standardized market trading platform, encouraging and attracting financial institutions and the public for wide participation, and enhancing the vitality of the CCER market; Third, enhancing the function and role of forestry carbon sequestration project in realizing carbon neutrality and ecological civilization construction, emphasizing the additionality and credibility of the project; Fourth, strengthening the staff team building in CCER market; Fifth, strengthening international cooperation and integrating into the global voluntary carbon market system in line with international rules. Sixth, establishing an internationally recognized CCER standard system. The above inspirations and suggestions will be the direction and driving forces for CCER market construction in the future.

Key words: VCS market, market operation, CCER market, reference from experience, enlightenment