China Clean Development Mechanism Fund Management Approach

Original Language Title: 中国清洁发展机制基金管理办法

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201102/20110200334068.shtml

China clean development mechanism fund management approach

    (September 14, 2010 Ministry of finance, the State development and Reform Commission, the Ministry of Foreign Affairs, the Ministry of science and technology, environmental protection Department, Ministry of agriculture, the China Meteorological Administration announced come into force on the date of promulgation, 59th) Chapter I General provisions

    First to strengthen and standardize China clean development mechanism Fund (hereinafter referred to as the Fund) collection, management and use of funds, Fund objectives, these measures are formulated.

    Second fund is approved by the State in accordance with the Social Fund of funds management policy.

    Article III of the purpose of the Fund is to support countries to cope with climate change and promote sustainable economic and social development.

    Fourth collection, management and use of funds, should follow an open, fair, safe, efficient, the principle of earmarking.

    Chapter II administrative institutions and their responsibilities

    Article fifth fund management by the Fund Board and Fund Management Center.

    Article sixth Fund audit institutions is the servicing of the Fund and on the Ministry of the Council rules of procedure.

    Funds audited by the national development and Reform Commission, Ministry of finance, the Ministry of Foreign Affairs, Ministry of science and technology, environmental protection, comprising representatives of the Ministry of agriculture and the Bureau of meteorology.

    Fund the audit Council shall have a Chairman and Vice Chairman, respectively, by the national development and Reform Commission and the Ministry sent representatives to perform their duties.

    Audit Board is responsible for the auditing of the Fund the following:

    (A) the basic management scheme of the Fund;

    (B) strategic plan for the development of the Fund, including the annual plan for the use of funds;

    (C) applications for paid use of Fund grants and major projects;

    (D) Fund annual financial budgets and final accounts;

    (E) other significant operational matters of the Fund.

    The matters listed in the preceding paragraph by the Fund after the review board review and consensus, submitted to the national development and Reform Commission, the Ministry of finance for approval.

    Seventh Fund Management Centre is the day-to-day management of the Fund, in charge of fund raising, management and use of the work, the Ministry of finance centralized management.

    Article eighth Fund Management Centre shall perform the following duties:

    (A) the drafting of basic management scheme of the Fund, developing fund operation and management requirements;

    (Ii) to raise funds;

    (C) management fund organizations paid use and financing of activities of the Fund;

    (D) preparing and organizing the implementation of the Fund's annual financial budget and final accounts;

    (E) the operation of the supervision and administration of projects supported by the Fund;

    (F) to fund of funds auditing report significant operational matters;

    (VII) other purposes of the activities of the Fund.

    Chapter fund raising

    Nineth sources of funds include:

    (A) the transfer of greenhouse gas emissions through the clean development mechanism project is owned by the State part of the income;

    (B) the operating income of the Fund;

    (C) the agencies, organizations and individuals at home and abroad;

    (D) other sources.

    Emissions in tenth article of the rules was approved by the State, through the transfer of greenhouse gas emission reductions of CDM projects; CERs income, refers to the transfer of CERs obtained income. Emission income enterprises and the implementation of clean development mechanism projects by the State (hereinafter referred to as the project owner) in accordance with the provisions of the respective proportions of the all.

    Emission reduction in the amount of income that are all part of the country (hereinafter referred to as national income) into the Fund in full.

    11th State revenues by Fund Management Centre is responsible for project owners or by scope of transfer to the emission reduction purchase contract charge.

    Project owner should be within 15 working days of the achieved emissions reductions of income, in accordance with the provisions in proportion to their designated national income accounts.

    12th national income should be achieved emissions reductions transfer currency stipulated in the contract.

    Emissions reductions transfer contract paid in foreign currency, but they need to pay national income, agreed by the Fund Management Centre, project owner shall, within 15 working days after obtaining the income paid in RMB exchange rates to settle cash purchase price shall prevail.

    13th emissions reductions transfer contract by the project owner and the emission reduction purchase agreements.

    Project owner should emissions within 15 working days of the entry into force of the contract of assignment, copy, copy of business license, contact by both parties of the contract and contact the Fund Management Center for the record.

    Record changes, client shall inform within 15 working days from the date of change fund management centre.

    14th owner payment, pay less, do not pay state income, the Ministry of finance and the national development and Reform Commission in accordance with the relevant provisions and penalties.

    The fourth chapter funds

    15th paid use of funds use grants, and so on.

    Fund grants support to strengthen climate change capacity-building and public awareness of climate change related activities.

    Paid use of funds through ways supported the climate change benefits of industrial activity.

    Funds purchased through bank deposits, Treasury bonds, financial bonds, corporate debt and other forms of financial activities.

    16th Fund expenditure includes operating expenses and management costs.

    Operating expenses include expenses and paid use of project development costs.

    Annual expenditure under the national climate change fund grants work needs to be determined. Use project development costs paid in these measures refers to funds paid using the project filter, investigation, evaluation, project costs incurred in the process.

    Use project development costs paid in accordance with the project using a certain percentage of the amount extracted. Foundation management costs in these measures, refers to the process of fund raising, management and use of overheads, including the clean development mechanism project overheads.

    Foundation management costs extracted according to a certain proportion of the funds net asset value last year.

    Paid use of project development costs and management expenses to specific percentage shall be determined separately by the Fund Board.

    Article 17th fund management centre of the Fund should be used for risk control.

    Funds may not be used for sponsorship and donations does not meet its purpose expenditures shall not be engaged in stock, stock investment funds, investment in real estate and financial derivatives such as futures.

    18th financial funds and fund management centre should establish accounts separately, accounting and budget and final accounts management.

    Ministry of finance is responsible for the development of financial management of the Fund, and use, and records of supervision and inspection.

    The fifth chapter grants for project management

    Article 19th grants primarily to support the following:

    (A) policy research and academic activities related to climate change;

    (Ii) international cooperation to address climate change-related activities;

    (C) training activities aimed at strengthening capacity-building to address climate change;

    (D) aimed at raising public awareness campaigns, educational programmes to address climate change;

    (E) services in other matters for the purpose of the Fund.

    Article 20th grants program, the applicant shall be in the field of climate change in the country, with certain research and training capacity of related institutions. 21st grant applications should be submitted to the project application form.

    Grant applications include the following:

    (A) the basic situation of the applicant;

    (B) project background information;

    (C) the project objectives;

    (D) the main contents of the project and activities;

    (E) the main output of the project;

    (F) the project implementation schedule;

    (G) applying for funding and budgetary arrangements;

    (H) other relevant content.

    22nd grant applications by the competent authorities or the provincial development and reform Department (hereinafter referred to as project organization reporting units) to the national development and Reform Commission reported or submitted.

    23rd national development and Reform Commission is responsible for grant review.

    Grants program for evaluating the results reported to the Fund after the review board review and consensus, approved by the national development and Reform Commission, the Ministry of finance.

    Article 24th grants program implemented by the project applicant organization.

    25th project contract management of grants, expressly stipulated in the contract the responsibility, rights, obligations and sanctions for breach.

    Grant project organized by the national development and Reform Commission, the project applicant, Fund Management Center, grant the applicant signed. 26th national development and Reform Commission, fund management centre in conjunction with the project organization reporting unit responsible for supervising the implementation of the grant project check and acceptance.

    The national development and Reform Commission, the Ministry of finance and penalties for breaches.

    27th grants project forming research or other results, the ownership of interests in grant projects stipulated in the contract.

    Paid use of the sixth chapter of project management

    28th paid use of funds take the form of:

    (A) equity investments;

    (B) entrusted loans;

    (C) the financing guarantee;

    (D) approved by the State in other ways. Equity, loans to support projects of the Fund, the annual cumulative amount shall not exceed the end of last year a certain percentage of the net assets.

    Specific percentage shall be determined separately by the Fund Board.

    Equity investment to support projects of the Fund shall be placed on the investment holdings, formed by the investment equity exits, shall be in accordance with the principles of openness, fairness and market, determine the price of exit and exit.

    Financing guarantees to support projects of the Fund, its amount shall not exceed the limits of the annual budget of the Fund.

    Article 29th project should be within the country of the applicant engaged in mitigation, adaptation to climate change-related business in the area that Chinese enterprises, Chinese holding company. Article 30th project applicant shall submit application documents to the Fund Management Centre.

    Applications include the following:

    (A) the application;

    (B) feasibility study of the project;

    (C) the enterprise nearly 3 years of operating conditions;

    (Iv) copy of business license;

    (E) other related material.
31st the Fund Management Centre is responsible for organizing the Fund paid use of project selection and appraisal.

    Is a major project, shall be submitted to the Fund after the review board review and consensus, approved by the national development and Reform Commission, the Ministry of finance; non-major projects, approved by the Fund Management Centre in accordance with the prescribed procedures, and within 15 working days after the approval of the national development and Reform Commission, the Ministry of finance for the record.

    Major projects referred to in the preceding paragraph refers to individual projects applying for funds of more than 70 million Yuan (including 70 million) paid to use the project.

    32nd investment management in accordance with the relevant provisions of article shall go through the procedures of project examination and approval, approval or for the record, from its provisions.

    In the project without any prior approval, approval or for the record, the Fund shall not finance the project.

    Article 33rd paid use of Fund Management Centre is responsible for the project's implementation, supervision and examination.

    Funds paid use of a variety of assets and rights shall be managed in accordance with the relevant financial rules and regulations of the State.

    The seventh chapter by-laws

    34th Fund and its central administration shall be subject to the State Auditing organ shall carry out audit supervision.

    35th article approved by the Foundation Board, Fund Management Center may appoint a social audit on fund size, fund balances, fund operation and management audit of the expenditures of the Centre. 36th article this way as of the date of promulgation.