surrounding the implementation of CDM projects in China. With the expiration of the
first Kyoto period, as one of the largest GHG emitters and major developing countries,
China is expected to play an indispensible and decisive role in combating global
warming beyond 2012. Therefore, it is of great significance to discuss and clarify the
legal problems of the CDM in the context of China with a view to assisting China in
making full use of the CDM to meet the challenge of global warming. Based on the
above analysis, this article aims to clarify the legal problems of implementing the CDM
in China through discussing various legal issues.
This article is divided into six parts. Part II introduces how to implement CDM
projects under the contemporary international regulatory framework as well as Chinese
domestic laws and regulations. Part III discusses various legal relationships involved in
implementing CDM projects. Based on the discussion on Part III, Part IV explores CDM-
related contracts. Part V assesses key concrete legal issues sourounding CDM projects.
Part VI is a conclusion and some recommendations to help clarify the legal problems of
implementing the CDM in China and addressing implications of developing the carbon
reduction projects beyond 2012.
II. Implementing CDM Projects in China
Article 12 of the Kyoto Protocol, the Marrakech Accords
and other decisions of the
conferences of parties of the UNFCCC stipulate the CDM modalities, operational rules
and procedures. Additionally, in October 2005, the Chinese Government issued
Measures for the Operation and Management of CDM Projects in China (Measures),
which is regarded as a basic regulation to guide the implementation of CDM projects.
According to the international treaty and documents as well as the Measures, how to
implement CDM projects in China is introduced.
A. Legal Requirements for CDM Projects
The general requirements for CDM project activities, with a view to protect Chinas
rights and interests, shall not only conform to the requirements under the UNFCCC, the
Kyoto Protocol and relevant decisions by the conference of parties in an international
KFBJM2)3122* DENjoDijob 9
CCORDS AND THE
accords_draft.pdf (last visited on Mar. 20, 2011).
See Measures for the Operation and Management of CDM Projects in China 2005
(the Peoples Republic of China),
http://cdm.ccchina.gov.cn/english/NewsInfo.asp?NewsId=905 (last visited on Mar. 20, 2011).