Expert Commentary | Yu Jie: Empowering Third-Party Services with Technological and Standard Innovation, Driving High-Quality Development of the Carbon Market

August 23, 2025, Beijing — At the 7th Conference on the Development of Carbon Trading Markets, Yu Jie, Director of Products at the China Quality Certification Centre (CQC), delivered a keynote speech. She stated that as the national carbon market enters Phase 2.0, third-party certification and verification agencies are taking on an even more critical role in market development. We need to drive technological breakthroughs and standard innovations to provide professional support for the healthy operation of the market and international cooperation.

Yu Jie pointed out that since its launch in 2021, the national carbon market has completed initial explorations in institutional development and is now entering a new phase focused on refining its framework and expanding into additional industries. As high-emission sectors such as steel, cement, and electrolytic aluminum are gradually integrated, both the market size and complexity continue to grow, placing higher demands on the accuracy of data accounting, the expertise of verification processes, and the independence of service providers. Traditionally, reliance on manual audits and on-site inspections can no longer fully meet the vast and diverse needs of the market—therefore, it is imperative to adopt more advanced approaches. Only by relying on digital and intelligent technologies, along with a comprehensive standard system, can we ensure the scientific rigor, transparency, and international mutual recognition of verification efforts.

She introduced CQC's recent explorations and practices in promoting the high-quality development of the carbon market, which are primarily reflected in four key areas:

First, technological innovation. CQC is actively integrating emerging technologies such as satellite remote sensing, blockchain, and artificial intelligence into its carbon emission data collection, transmission, and verification processes. Satellite remote sensing enables large-scale monitoring of energy consumption and land use, while AI excels at swiftly processing and identifying carbon emission data even in complex scenarios. Meanwhile, blockchain technology ensures the authenticity and immutability of the data. These innovative approaches have significantly enhanced both the efficiency and credibility of verification efforts, laying a robust technological foundation for the development of a more scientific and transparent carbon market.

Second, standards lead the way. Yu Jie emphasized that standards are a crucial safeguard for the credibility of the carbon market. CQC not only actively participates domestically in greenhouse gas emission accounting and the establishment of MRV (Monitoring, Reporting, and Verification) systems but also remains committed to fostering international collaboration. For instance, CQC has taken the lead in developing carbon emission accounting standards for China-Europe freight trains, providing a unified framework for cross-border transportation and paving the way for replicable, scalable international rules aimed at reducing emissions in global logistics. This initiative not only strengthens the international influence of China's carbon standards but also injects a green dimension into cooperation under the Belt and Road Initiative.

Third, service expansion. She explained that CQC is continuously expanding the boundaries of its services, gradually moving beyond traditional carbon verification into a variety of emerging areas—such as green supply chain assessments, product carbon footprint calculations, ISCC sustainability certification, and even carbon efficiency evaluations for data center computing power. These new services help companies identify hidden carbon emissions in their supply chains, optimize energy-use efficiency, and enhance their competitiveness in the global landscape of green trade regulations. At the same time, these expanded offerings provide the market with a richer array of low-carbon tools, catering to the diverse needs of businesses across different sectors.

Fourth, international expansion. CQC has obtained accreditation and verification qualifications across 16 sectors covered by the UN’s Paris Agreement’s Article 6.4 mechanism, making it one of the few domestic institutions fully equipped with comprehensive international verification capabilities. This not only enables CQC to meet the growing domestic needs of Chinese enterprises but also empowers Chinese companies to "go global," supporting them in overseas carbon asset management and carbon reduction project development. Additionally, CQC has joined forces with international and domestic partners to establish the ICAVC International Carbon Accounting and Verification Council. Through its globally recognized qualifications and extensive service network, CQC is steadily building a carbon market service system that spans both domestic and international markets, helping China secure a stronger voice in global carbon governance.

Yu Jie emphasized that the credibility of carbon markets hinges on the authenticity of data and the independence of verification. Third-party institutions must always uphold “Independent, impartial, professional” The principle is to avoid conflicts of interest and ensure that the verification results can withstand scrutiny from both the market and the international community. At the same time, third-party organizations should continuously enhance their own capacity-building efforts. Improve the internal quality management system and talent development mechanism to build a versatile team that not only possesses expertise in low-carbon fields but also stays well-versed in international regulations.

She concluded by saying that as the national carbon market continues to expand, the role of third-party institutions will become increasingly vital. CQC will continue to leverage its strengths in standards, technology, and internationalization, working hand-in-hand with governments, businesses, and various sectors of society to jointly drive the high-quality development of China's carbon market. Through sustained efforts in areas such as technological innovation, standard-setting, and global collaboration, third-party institutions will contribute to the standardization and internationalization of China's carbon market, while also offering a more credible Chinese solution to global climate governance.