Dilemmas and Exits: Compliance Risks and Future Paths for Land-Based Emission Reduction Projects in China

Between 2024 and 2025, Chinese land-based emission reduction projects frequently faced quality reviews and sanctions from Verra, a leading international standards-setting body. In addition to project stagnation and the withdrawal of carbon credits, China’s reputation as a host country in international efforts to reduce carbon emissions was severely damaged. These cases stem from a deeper social phenomenon: non-state actors like Verra have acquired rule-making power, and exercising this power has substantial implications for other entities, manifesting in the carbon emissions reduction field as tensions over the interests and reputations of project proponents and related parties. With non-state actors breaking the previous monopoly on rule-making power held solely by state actors, creating a “dualistic” confrontation, coordinating the relationship between the two becomes crucial, as promoting positive interaction becomes crucial. Otherwise, the dilemma of “compliant domestically, non-compliant internationally” and “international standards being difficult to implement domestically” will arise, as seen in these cases. This study used two cases of sanctions imposed by Verra on Chinese land-related projects as starting points. Then, taking China’s independent development of a methodology for silt-retention dam carbon sink projects to mitigate international sanctions as a third case. Following a research approach of “case analysis, in-depth investigation of bottlenecks, overcoming difficulties,” this study systematically examines the shortcomings and necessary efforts of both sides by exploring the various problems arising from the clash and conflict of rules between non-state actors and state actors. To address this issue, this study constructs a nested theoretical framework comprising two two-tiered theoretical structures. This study argues that both Verra and the government of China should work together to promote the legitimacy of emission reduction project standards and their effectiveness within host countries. The solutions proposed in this study can also provide experience and a reference for developing countries in addressing the expansion of power by non-state actors and the disconnect between domestic rules.