Around the development of low carbon economy, all kinds of preparations are carried out intensively. The Shanghai Environment and Energy Exchange issued the Announcement on Issues Related to National Carbon Emission Trading on June 22 (hereinafter referred to as the Announcement), which mentioned that the national carbon emission trading institution is responsible for organizing the centralized and unified trading of carbon emission rights nationwide. This means that the national carbon emission rights trading market (referred to as the carbon trading market) will start soon.
Under the guidance of the concept of sustainable development, low carbon economy means to reduce coal, oil and other high carbon energy consumption as much as possible, reduce greenhouse gas emissions and achieve a win-win economic development pattern of economic and social development and ecological and environmental protection through various means such as technological innovation, institutional innovation, industrial transformation and new energy development.
Low-carbon economy will ultimately reduce dependence on fossil fuels and reduce greenhouse gas emissions through technological innovation and optimization transformation of the real economy. However, according to history and the experience of relevant countries, without the introduction of market mechanism, it is impossible to achieve emission reduction targets only through voluntary or compulsory actions of enterprises and individuals. Carbon trading is the only way to use the market mechanism to lead the development of low-carbon economy. Starting from the level of capital, carbon trading market extends carbon asset, a new type of capital, by classifying environmental capacity and defining greenhouse gas emission rights.
According to the announcement, the national carbon emission trading agency is responsible for organizing the centralized and unified trading of carbon emission rights nationwide. Carbon emission quota (CEA) trading shall be conducted through the trading system, and may take the form of agreement transfer, one-way bidding or other conforming methods. Agreement transfer includes listing agreement trading and block agreement trading.
According to relevant studies, in the long term, China's carbon trading scale will exceed one trillion yuan. Earlier, at the 20th round of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the Chinese government said that China would limit its annual carbon dioxide emissions to less than 10 billion tons by 2016-2020 and promised that emissions would peak around 2030 at about 15 billion tons per year. In terms of industry, the power generation industry may take the lead in launching online trading in 2021. During the 14th Five-Year Plan period, high-emission industries such as petrochemical, chemical, building materials, steel, non-ferrous metals, papermaking and aviation will also be included in the national carbon trading market. By the end of the 14th Five-Year Plan, the world's largest carbon trading market will have been built, with a turnover expected to exceed 100 billion yuan. Some analysts point out that in the future, the market size of carbon futures is expected to reach 60 billion to 400 billion yuan per year, with the gradual transition from spot trading to futures trading.
According to the announcement, in terms of listing agreement transactions, the maximum quantity declared for a single transaction should be less than 100,000 tons of carbon dioxide equivalent. The subject of the transaction will check the real-time order quotation, choose the counterparty's price as the transaction price within the five optimal real-time prices of the counterparty according to the principle of price priority, submit the declaration and complete the transaction. If there are more than one listing declaration at the same price, the trading subject can choose any counterparty to complete the transaction. Transaction quantity is the quantity declared by the intended party.
For bulk deals, the minimum declared quantity for a single transaction shall not be less than 100,000 tonnes of CO2 equivalent. A trading subject may initiate a trading declaration, or negotiate the price through dialogue with the counterparty that has initiated the declaration, or make delivery directly with the counterparty. The transaction is confirmed after the two parties reach an agreement on the transaction price, transaction quantity and other factors. The closing price of a large deal is determined at ±30% of the previous trading day's closing price.
According to market developments, the trading system now offers one-way bidding, the statement said. The trading subject puts forward the selling application to the trading institution, the trading institution issues the bidding announcement, and the qualified intended assignee offers the price in accordance with the provisions and closes the transaction through the trading system within the agreed time. The trading institutions shall, according to the requirements of the competent authorities, organize and carry out compensated issuance of quotas, and the relevant business provisions of one-way bidding shall be applicable. The relevant business provisions of one-way bidding shall be announced separately by trading institutions. A trading declaration shall include the transaction subject number, transaction number, product code, trading direction, declared quantity, declared price and other contents as required by the trading institution.
The imminent launch of the carbon trading market means that China has taken another solid step towards the "double carbon" goal. In order to ensure the realization of carbon neutrality, the global energy consumption structure in the future requires that all carbon dioxide emitted by fossil energy can be absorbed by the earth's biosphere. However, the absorption capacity of the earth's biosphere is limited. Therefore, the proportion of renewable energy in the future energy consumption structure is bound to increase substantially. In this context, the new energy industry will usher in development opportunities.