The Ministry of Ecology and Environment issued technical guidelines for accounting, reporting and verification of greenhouse gas emissions from cement industry enterprises

2024-09-18 09:07:14

Recently, The Ministry of Ecology and Environment has formulated and issued four technical specifications for the national carbon emission trading market, namely, the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions from Enterprises in the Cement Industry (CETS-AG-02.01-V01-2024) and the Technical Guidelines for Verification of Greenhouse Gas Emissions from Enterprises in the Cement Industry (CETS-VG-02.01-V01-2024). It shall enter into force as of the date of issuance.

Recently, The Ministry of Ecology and Environment has formulated and issued four technical specifications for the national carbon emission trading market, namely, the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions from Enterprises in the Cement Industry (CETS-AG-02.01-V01-2024) and the Technical Guidelines for Verification of Greenhouse Gas Emissions from Enterprises in the Cement Industry (CETS-VG-02.01-V01-2024). It shall enter into force as of the date of issuance.

In accordance with the relevant requirements of the Provisional Regulations on the Management of Carbon Emission Trading, the Accounting Guidelines and the Verification Guidelines are problem-oriented, focusing on optimizing the calculation formulas related to carbon emission accounting, streamlining key parameters, standardizing accounting rules and enterprise self-certification materials, and increasing the special chapters of enterprise data quality control schemes. Put forward the management requirements of measurement and testing equipment related to carbon emission accounting, and incorporate the key parameters and supporting materials of monthly information certificate into the annual emission report. In addition, the online monitoring and reporting requirements of carbon dioxide are added to reserve space for further promotion of online monitoring; it is clear that indirect emissions of electricity and heat are not calculated, but enterprises are required to fill in electricity and heat data for auxiliary verification of data. The key elements of the

Accounting Guide and the Verification Guide are as follows:

1. It is clear that the boundary of clinker production facility level and enterprise level accounting and the boundary of emission

source enterprise level accounting are legal persons whose main business is cement clinker production or independent accounting units regarded as legal persons. The accounting and reporting scope of greenhouse gas emissions includes the main production system, auxiliary production system and subsidiary production system. The carbon emissions at the enterprise level are only used as reporting items for enterprises to grasp their own emissions, and no verification is carried out. The accounting boundary of clinker production is the clinker burning system, mainly including preheater, calciner, cement kiln, etc. Both clinker production and enterprise levels include fossil fuel combustion emissions and process emissions, excluding indirect carbon emissions of electricity and heat, but enterprises are required to fill in electricity and heat data for auxiliary verification of data.

2. Define the types

of non-carbonate alternative raw materials and alternative fuels. Non-carbonate alternative raw materials are non-carbonate raw materials used in clinker production to replace natural carbonate ore raw materials, which can significantly reduce process emissions. They are mainly industrial waste residues, waste residues calcined at high temperature or raw materials that clearly do not contain calcium carbonate or magnesium carbonate. Non-carbonate alternative raw materials recognized in the guidelines include desulfurization powder (calcium hydroxide), slaked lime, calcium carbide slag, magnesium slag, paper making white mud, calcium fluoride sludge, phosphorus slag, vanadium-titanium slag, nitrogen slag, fly ash, ferroalloy slag, desulfurization gypsum, phosphogypsum, titanium gypsum, fluorogypsum, boron gypsum, model gypsum, citric acid slag, steel slag, nickel slag, manganese slag, zinc slag, tin slag, municipal sludge, Aluminum slag, sulfuric acid slag, copper slag, lead-zinc slag, fly ash and red mud. The types of raw materials not included in the list shall not be deducted.

Alternative fuels are combustibles that are used as a heat source in clinker production to replace traditional fossil fuels. The main sources are municipal solid waste, industrial waste and by-products, biomass, etc., including waste oil, waste spinning, waste tires, waste plastics, rubber, waste solvents, waste leather, waste glass fiber reinforced plastic, carbon black, domestic waste pretreatment combustibles, biomass fuels, etc. Alternative fuel combustion emissions are not accounted for, only consumption is reported, and enterprises are encouraged to use alternative fuel technologies.

3. Focus on the accounting and verification of clinker production facilities, streamline key parameters, and give the requirements

for obtaining key parameters 3.1. Fossil fuel combustion emissions are calculated according to "consumption * low calorific value received * carbon content per unit calorific value * carbon oxidation rate * 44/12". The acquisition principle of key parameters is as follows:

the fossil fuel consumption is obtained by the measurement data of the electronic truck scale and rail scale entering and leaving the factory of the enterprise in combination with the inventory data; when it is clear that multiple production lines share the pulverized coal bunker or raw coal yard, the fossil fuel consumption of each production line is calculated according to the clinker output. The net calorific value of

fossil fuel may be the data value in each batch of trade settlement vouchers and the corresponding sampling and testing report, which shall clearly indicate the basis for sampling, sample preparation and testing, the net calorific value as received and the weight, batch or other traceability identification of the fossil fuel represented. It shall be issued by a testing institution/laboratory that has passed CMA certification or CNAS accreditation and has the ability to detect the low calorific value, and the test report shall be stamped with the CMA qualification certification mark or CNAS accreditation seal; the default low calorific value of the corresponding fossil fuel in the appendix can also be used. If the facility is unable to distinguish between coals and use coals not listed in the appendix, the default net calorific value of bituminous coal in the appendix is used. It should be emphasized that the source of the net calorific value of each fossil fuel shall not be changed in the reporting period after the source is determined. If the settlement calorific value is used for bituminous coal in the current year and the default value is used for anthracite, the settlement calorific value can continue to be used for bituminous coal in the next year and can be changed to the default value, and the default value can continue to be used for anthracite and can be changed to the settlement calorific value. 3.2 The

process emission is calculated according to "clinker output × clinker process emission factor-consumption of various non-carbonate alternative raw materials × deduction coefficient of non-carbonate alternative raw materials", and the acquisition principles of key parameters and factors are as follows:

At present, there is no mature direct measurement equipment in the industry, and data can only be obtained by inventory method. Enterprises are encouraged to adopt advanced intelligent inventory technology, and put forward the operation specifications and recording requirements of manual and intelligent inventory. The consumption

of non-carbonate substitute raw materials is measured by the belt weigher entering the raw mill or kiln. When the non-carbonate substitute raw materials are mixed with other raw materials into the raw mill or kiln and cannot be measured separately, the consumption of non-carbonate substitute raw materials is calculated as 0. Verification data, literature, EU data and other data sources are comprehensively considered in the determination process of

clinker process emission factors. Based on the analysis of 1360 verified measured data of calcium oxide and magnesium oxide content of clinker in 2022, the weighted average is 0.535 tCO2/t, the median is 0.535 tCO2/t, and the 99% confidence interval is 0.528 to 0.535 tCO2/t. At the same time, it is 0.538 tCO2/t compared with the Provincial Greenhouse Gas Inventory Compilation Guidelines (Trial) and 0.535 tCO2/t compared with the Accounting Guidelines.

The non-carbonate alternative material deduction factor is based on the non-carbonate alternative material calcium oxide and magnesium oxide content samples verified in 2022, and 133 commonly used non-carbonate alternative materials are identified, which are further classified into 8 categories of 30 main non-carbonate alternative materials (covering more than 92% of the consumption of commonly used non-carbonate alternative materials). The weighted average value of the deduction coefficient is calculated for 30 kinds of substitute raw materials, and the deduction coefficient of each kind of non-carbonate substitute raw materials is determined according to the conservative principle.

4. The emissions at the enterprise level are only reported but not verified

. The accounting at the enterprise level is based on the legal person whose main business is cement clinker production or the independent accounting unit regarded as a legal person. The scope of greenhouse gas emissions accounting and reporting includes greenhouse gas emissions from main production systems, auxiliary production systems and subsidiary production systems. At the same time, it is necessary to calculate the greenhouse gas emissions of power generation facilities and other non-cement clinker products that are not included in the national carbon emission trading market. The emissions at the enterprise level are only reported without verification

. 5. The new data quality control scheme requires

a new chapter on the data quality control scheme, which clarifies the format requirements, data quality management requirements, revision conditions and implementation requirements of the data quality control scheme. Promote enterprises to establish internal quality control and quality assurance system of data, improve the management system of original vouchers and account records, and continuously improve the basic ability of enterprise carbon emission statistics and accounting.

6. Clarify the requirements

for emission reporting and certification, implement the requirements of the Regulations, further clarify the requirements for greenhouse gas emission reporting and certification of enterprises, and put forward clearer requirements for monitoring and acquisition of key parameters such as fossil fuel consumption, clinker production, consumption of non-carbonate alternative raw materials, and verification/calibration of measuring instruments. Enterprises are required to upload key data and supporting materials including verification/calibration certificates of measuring equipment through the national carbon market management platform within 40 natural days after the end of each month. In order to reduce human intervention, enterprises are encouraged to promote the docking of measuring instruments and testing equipment acquisition terminals with the national carbon market management platform, laying a good foundation for the automatic submission of key parameters of carbon emission accounting in the next step.

7 Relevant requirements for online monitoring of flue gas carbon dioxide emissions (CEMS) are put forward

in the data quality control plan, monthly information certificate and annual emission report. Enterprises that install online monitoring equipment for carbon dioxide emissions are encouraged to fill in relevant information, including monitoring equipment, installation location, data report content and information recording form, data audit and abnormal situation handling system, as well as comparative analysis and verification of monitoring data and accounting data, so as to lay a good foundation for further exploration of online monitoring in cement enterprises.

All can be viewed after purchase
Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.