[The "Administrative Measures for China's Clean Development Mechanism Fund" was revised and issued and will be implemented on August 1, 2022] Cailian News Agency reported on July 1 that the "Administrative Measures for China's Clean Development Mechanism Fund" was approved by the Ministry of Finance on December 31, 2020. It was deliberated and approved at the ministerial meeting, approved by the Ministry of Ecology and Environment, the National Development and Reform Commission, the Ministry of Foreign Affairs, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Affairs, and the Meteorological Bureau, and reported to the State Council for approval. It is hereby promulgated and will come into force on August 1, 2022. The purpose of the fund is to support activities in green and low-carbon fields such as national carbon peaking, carbon neutrality, climate change response, pollution prevention and ecological protection, and promote high-quality economic and social development.

　　Measures for the Administration of China's Clean Development Mechanism Fund

　　Chapter 1 General Provisions

　　Article 1 These Measures are formulated in order to strengthen and standardize the fundraising, management and use of the China Clean Development Mechanism Fund (hereinafter referred to as the Fund) and to realize the purpose of the Fund.

　　Article 2 The fund is a policy fund established with the approval of the state and operates in accordance with a market-oriented model.

　　Article 3 The purpose of the fund is to support activities in green and low-carbon fields such as national carbon peaking and carbon neutrality, addressing climate change, pollution prevention and ecological protection, and promoting high-quality economic and social development.

　　Article 4 The fundraising, management and use of funds shall follow the principles of openness and fairness, safety standards, special funds for special purposes, and focus on performance.

　　Chapter II IMF Organizational Structure

　　Article 5 The organizational structure of the Fund consists of the Fund Policy Steering Committee and the Fund Management Center.

　　Article 6 The Fund Policy Steering Committee is an inter-ministerial deliberative body for fund affairs and is responsible for providing policy guidance to the Fund.

　　The Fund Policy Steering Committee is composed of representatives from the Ministry of Finance, the Ministry of Ecology and Environment, the National Development and Reform Commission, the Ministry of Foreign Affairs, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Affairs and the Meteorological Bureau.

　　The Fund Policy Steering Committee is co-chaired by representatives of the Ministry of Finance, the Ministry of Ecology and Environment, and the National Development and Reform Commission, responsible for convening and chairing the Fund Policy Steering Committee meetings.

　　The Fund Policy Steering Committee has a secretariat, and the Fund Management Center undertakes specific tasks.

　　Article 7 The Fund Policy Steering Committee shall perform the following duties:

　　(1) To provide guidance on the formulation of the basic management system of the fund;

　　(2) To provide policy guidance on the development direction, medium and long-term development strategies and business development of the Fund;

　　(3) Provide guidance on the direction of support for fund grants, paid use, etc. and other policies;

　　(4) To provide guidance on other major matters affecting the development of the Fund.

　　Article 8 The Fund Management Center is the management agency of the fund, which is specifically responsible for the raising, management and use of the fund, and is under the centralized management of the Ministry of Finance.

　　Article 9 The Fund Management Center shall perform the following duties:

　　(1) Drafting the basic management system of the fund and formulating the specific operation and management regulations of the fund;

　　(2) Raising and managing fund funds;

　　(3) To organize and carry out business such as fund grants and paid use;

　　(4) Supervise and manage projects such as fund grants and paid use;

　　(5) Report to the Fund Policy Steering Committee on the Fund's annual business plan and its development, as well as other major matters;

　　(6) To perform the duties of the secretariat of the Fund Policy Steering Committee;

　　(7) To carry out other activities in line with the purpose of the Fund.

　　Chapter 3 Fund Raising

　　Article 10 The sources of funds include:

　　(1) The state-owned portion of the income obtained from the transfer of GHG emission reductions through clean development mechanism projects;

　　(2) Fund operating income;

　　(3) Donations from domestic and foreign institutions, organizations and individuals;

　　(4) Other sources.

　　Article 11 The term “emission reductions” as mentioned in these Measures refers to the greenhouse gas emission reductions transferred through clean development mechanism projects with the approval of the state; emission reduction income refers to the income obtained from the transfer of emission reductions.

　　The emission reduction revenue is owned by the state and the enterprises implementing CDM projects in accordance with the prescribed proportions. The state-owned portion of emission reduction revenue is fully funded.

　　Article 12 The term "income from fund operations" as mentioned in these Measures refers to the income obtained from the paid use of funds within the scope of use specified in these Measures.

　　Chapter 4 Use of Funds

　　Article 13 The use of the fund shall be based on the principle of preserving the capital and achieving low profits and realizing sustainable development, and shall adopt the methods of grants and paid use.

　　Article 14 The Fund supports the following project activities by arranging grants of a certain scale:

　　(1) Policy research and academic activities related to carbon neutralization and climate change response;

　　(2) International cooperation and exchange activities related to carbon neutralization and climate change response;

　　(3) Training activities aimed at strengthening carbon peaking, carbon neutrality, and capacity building for addressing climate change;

　　(4) Publicity and education activities aimed at raising public awareness of carbon peaking, carbon neutrality, and addressing climate change;

　　(5) Other projects in line with the purpose of the Fund.

　　The annual expenditure scale of fund grants is determined according to the income of the fund in the previous year and the actual needs of national carbon neutralization and climate change response.

　　Article 15 The application unit of the fund grant project shall be the relevant department of the people's government at or above the provincial level related to the work of peaking carbon neutrality and addressing climate change. Provincial-level ecological and environmental departments are responsible for the organization and declaration of local grants.

　　Article 16 The application, evaluation, management and assessment and acceptance of fund grant projects shall be carried out in accordance with the relevant regulations on fund grant project management.

　　The management measures for funded projects shall be formulated separately by the Ministry of Ecology and Environment and the Ministry of Finance. Based on this, the Ministry of Ecology and Environment takes the lead in compiling the annual grant project guidelines.

　　Article 17 The fund supports the following project activities through paid use:

　　(1) Project activities that are conducive to achieving carbon peaking and carbon neutrality and producing benefits for addressing climate change;

　　(2) Project activities to implement the major decisions and arrangements of the state on pollution prevention and ecological protection;

　　(3) Other project activities in line with the purpose of the Fund.

　　Article 18 The paid use of the fund mainly adopts the following methods:

　　(1) Debt investment;

　　(2) Equity investment;

　　(3) financing guarantee;

　　(4) Other methods in compliance with state regulations.

　　Article 19 The paid use of funds shall be carried out by professional institutions and shall be managed by professionalism.

　　The various assets and rights and interests formed by the paid use of the fund shall be managed in accordance with the relevant financial and other rules and regulations of the state.

　　Article 20 The organization and development of paid use of funds shall be implemented in accordance with the relevant regulations of the Ministry of Finance on the management of paid use of funds.

　　Article 21 Fund expenditures include grant expenditures and basic management fees.

　　The “basic management fee expenditure” mentioned in the preceding paragraph refers to the relevant expenses in the process of fund raising, management and use, including the daily management fee of the fund management center, the fund business development fee and other expenses.

　　Article 22 The fund management center shall disclose the following information:

　　(1) relevant policy documents of the Fund;

　　(2) The application process of the fund grant project and the list of materials to be provided;

　　(3) The business development of fund grants, paid use, etc., except those involving state secrets and commercial secrets;

　　(4) Other information that shall be disclosed as required by laws and regulations.

　　Article 23 Funds and fund management centers shall establish separate accounts and conduct separate accounting, and strengthen supervision and management in accordance with the provisions of the Ministry of Finance on fund financial management, improve fund use performance, and ensure fund security.

　　Article 24 The fund management center shall strengthen the risk management of the use of funds, and identify, analyze, evaluate and deal with relevant risks in a timely manner.

　　The fund shall not be used for sponsorship and donation expenditures that do not conform to its purpose, and shall not engage in investment in high-risk financial derivative products such as real estate, stocks, stock-based securities investment funds, and futures.

　　Chapter V Supervision and Inspection and Legal Responsibilities

　　Article 25 The Ministry of Finance and the Ministry of Ecology and Environment shall, in accordance with the division of responsibilities, strengthen the supervision and inspection of the paid use of funds, the development of grant projects, and accounting materials, and standardize the operation and management of funds throughout the chain.

　　The Fund Management Center shall, in conjunction with relevant units, supervise and manage the use of fund funds and output results, and report relevant information to the Fund Policy Steering Committee in a timely manner.

　　Article 26 The fund and its management center shall be subject to the audit supervision carried out by the state audit agency in accordance with the law.

　　Article 27 The fund management center shall hire a social audit institution to audit the fund revenue and expenditure scale, fund balance, fund operation, and fund management center expenditure.

　　Article 28 The fund management unit and its staff have violated the provisions of these Measures in the management of fund grant projects, paid use projects and other major businesses, as well as abuse of power, dereliction of duty, favoritism and other violations of laws and disciplines. If a crime is constituted, criminal responsibility shall be investigated according to law.

　　Article 29 If a fund user and its staff violate the provisions of these Measures in the use of funds, the relevant competent department shall order it to make corrections, and investigate corresponding responsibilities in accordance with laws and regulations; if a crime is constituted, criminal responsibility shall be pursued according to law.

　　Chapter VI Supplementary Provisions

　　Article 30 The Ministry of Finance, the Ministry of Ecology and Environment, the National Development and Reform Commission, the Ministry of Foreign Affairs, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Affairs and the Meteorological Bureau are responsible for the interpretation of these measures.

　　Article 31 These Measures shall come into force on August 1, 2022. The Measures for the Administration of China's Clean Development Mechanism Funds issued on September 14, 2010 (Ministry of Finance, National Development and Reform Commission, Ministry of Foreign Affairs, Ministry of Science and Technology, Ministry of Environmental Protection, Ministry of Agriculture, China Meteorological Administration Order No. 59) shall be repealed at the same time.