Recently, the Asian Development Bank, the Asian Infrastructure Investment Bank, and the University of Hong Kong jointly organized a forum on "Policy and Dialogue on China's Carbon Emissions Trading System and the Way Ahead." Lu Shize, deputy director of the Department of Climate Change of the Ministry of Ecology and Environment, explained in depth the latest situation of China's carbon market construction and the next trend in the field of carbon emissions trading.
Since July 16, 2021, the national carbon emissions trading market has been launched, and the construction of two performance cycles has been successfully completed. Lu Shize introduced that the national carbon emissions trading market is running smoothly on the whole. By the end of last year, the accumulated turnover reached 24.9 billion yuan, and the turnover reached 440 million tons. Trading in the national carbon emissions trading market was more active, with a turnover of 212 million tons in the second cycle and a turnover of 14.4 billion yuan, an increase of 19% and 89% compared with the first cycle.
Lu Shize pointed out that although there is still a certain gap between China's carbon price and that of developed countries in recent years, the overall rate and extent of China's carbon price rise are relatively large, and the overall carbon price is steadily rising. The carbon price was 48 yuan/ton at the opening in 2021, and the closing price last year was about 80 yuan/ton. According to the data of Shanghai Environmental Energy Exchange, the closing price of the national carbon emission trading market on March 29 was 90.66 yuan/ton, breaking through 90 yuan/ton for the first time. For the first time, the
carbon market compacts the responsibility of emission reduction to every enterprise
. At present, China's carbon market includes mandatory carbon emission trading market and voluntary greenhouse gas emission reduction trading market. The two markets jointly build a carbon market system with Chinese characteristics. Lu Shize pointed out that through the construction and operation of the carbon market, China has initially explored a carbon market framework system with Chinese characteristics, which has played a vital role in promoting China to achieve the goal of "double carbon".
The carbon market can effectively play the incentive and restraint role of the market mechanism. Lu Shize summed up the four main roles of the carbon market: First, implement the responsibility of enterprises to reduce emissions. Through the carbon market, for the first time, China has consolidated the responsibility of emission reduction to every enterprise nationwide. Under the impetus of carbon trading, enterprises have established professional teams and firmly established the awareness of carbon reduction. The second is to reduce the cost of carbon reduction in the industry and the whole society. The carbon market is a low-cost tool for carbon reduction. The overall cost of carbon reduction in the national power industry has been reduced by about 35 billion yuan in the two performance cycles. The third is to anchor the benchmark price for carbon pricing activities, and China's carbon pricing mechanism with the carbon market as the core is gradually taking shape. Fourthly, we should establish a statistical accounting system for carbon emissions in key industries, explore the establishment of a carbon emission MRV system in line with China's actual situation, and cultivate a large number of carbon emission reduction and management professionals and technical service institutions.
Expanding the coverage of voluntary emission reduction trading market and gradually introducing paid distribution
in January this year, the national greenhouse gas voluntary emission reduction trading (CCER) market was restarted. On February 4, the Interim Regulations on the Management of Carbon Emission Trading were promulgated and came into effect on May 1 this year. The Regulation is the first special regulation in the field of climate change in China, and it is the first time to clarify the carbon emission market trading system in the form of administrative regulations, which is of milestone significance.
Looking forward to the future of the national carbon market construction, Lu Shize put forward four key tasks for the next step of China's carbon market.
First, we should further improve the system and continue to do a solid job in the construction of the system and management system. The next step will be to publicize and implement the Interim Regulations on the Management of Carbon Emission Trading, timely formulate and revise relevant supporting policy documents and technical specifications, and continue to do a good job in the quality management of carbon emission data.
Second, we will steadily expand the coverage of the national carbon emissions trading market. Lu Shize said that at present, China's national carbon emissions trading market only covers the power industry, and the next step is to give priority to key industries with large carbon emissions, serious overcapacity, good synergy of pollution reduction and carbon reduction, and good data quality. According to the principle of "mature one, cover one", more industries are gradually included to expand the scale of emissions covered by the market. We will strive to achieve the first expansion of the national carbon emissions trading market as soon as possible, and issue new quota allocation schemes and accounting and verification guidelines for the industry.
Thirdly, we should promote the construction of the national greenhouse gas voluntary emission reduction trading market and expand the support areas of the voluntary emission reduction trading market. Lu Shize proposed that efforts should be made to establish an international, standardized, effective, fair and transparent voluntary emission reduction trading market to encourage a wider range of industries and enterprises to participate in emission reduction; launch new project emission reduction online trading, improve the voluntary emission reduction market system, issue new methodologies, establish a voluntary emission reduction market data quality supervision mechanism, and promote convergence with international rules.
Fourth, enrich market functions and stimulate market vitality, including improving quota allocation methods and gradually introducing paid allocation; enriching carbon market trading varieties, trading subjects and trading methods to stimulate market vitality; strengthening market trading supervision, studying and improving market trading rules to enhance trading activity. On the issue of paid distribution of social concern, Lu Shize said that preparations are being carried out intensively.
Carbon market mechanism is a policy tool
to achieve low-cost carbon reduction in the whole society. In order to actively respond to global climate change, China put forward the goal of "achieving carbon peak by 2030 and carbon neutrality by 2060" at the 75th United Nations General Assembly in September 2020. "Carbon neutrality" was also written into the government work report in 2021 for the first time. In recent years, China has put forward the concepts and practices of "Chinese-style modernization", "carbon neutrality" and "carbon peak", which have injected new impetus into global sustainable development.
Lu Shize put forward four experiences and Enlightenments of China's carbon market construction, and said that the practice of China's carbon market construction can provide reference for developing countries.
First, the carbon market mechanism is a policy tool to achieve low-cost carbon reduction in the whole society. Lu Shize believes that the construction of carbon market can not only promote the green low-carbon transformation and high-quality development of the industry, but also provide flexible choices for enterprises to fulfill their carbon reduction responsibilities, and help enterprises achieve low-cost carbon reduction, which is an important choice for developing countries. As far as China is concerned, the carbon market mechanism is a mechanism that is very suitable for China's national conditions. It not only compacts the responsibility of emission reduction to enterprises, but also fully considers the actual situation and affordability of enterprises, and promotes the survival of the fittest.
Establish a carbon market under the control of carbon emission intensity in line with national conditions. According to the development of the industry and the advanced level of carbon emission in the standard industry, the benchmark value of carbon emission intensity is determined, which not only plays the role of carbon market in encouraging and restraining enterprises, but also avoids adverse effects on the development of the industry. Lu Shize said that the choice of carbon emission quota allocation should be in line with national characteristics and national conditions. At present, many countries in Europe and the United States have completed the carbon peak, and they adopt the allocation method of carbon emission quota with total amount control. At present, China is in the early stage of carbon peak, and the overall production activities are expanding. China's carbon emission quota allocation method is centered on intensity, which is China's characteristics and innovation, and can also be chosen by many developing countries.
Third, data quality is the foundation to ensure the healthy, stable and orderly operation of the carbon market. Lu Shize believes that compared with the economic means of carbon tax, carbon market means are more flexible, but the requirements for data quality are higher. Both the mandatory carbon market and the voluntary carbon market should make great efforts to do a good job in data quality management, and adhere to the "strict management" bottom line to establish a closed-loop management, simple and easy management system.
Fourth, make full use of information technology such as big data to improve the efficiency of supervision. Make full use of information technology such as big data and block chain to improve the efficiency of supervision, realize intelligent early warning and data tracking, eliminate data problems in the "embryonic" stage, and resolve the problem of weak supervision ability. Use big data and block chain technology to promote the quality of carbon emission data in key industries to the right track.
"Compared with the EU carbon market and the carbon market of some developed countries, China's carbon market has just started, and we have just been running for more than two years." Lu Shize also appealed to experts, scholars and business representatives to put forward valuable opinions and suggestions on China's carbon market work and jointly promote the prosperity and development of the global carbon market.
