The national carbon market is finally here, how should energy companies respond?

On January 5, the Ministry of Ecology and Environment formally issued the "Administrative Measures for Carbon Emission Trading (Trial)" (hereinafter referred to as the "Administrative Measures"), which stipulated the national carbon emission trading and related activities, including the allocation and clearing of carbon emission allowances.

At the same time, the Ministry of Ecology and Environment first included the power generation industry in the national carbon emission trading market, and issued a supporting quota allocation plan and a list of 2225 key emission units

As an important starting point for promoting China's carbon emission reduction work, China's carbon market has conducted a lot of exploration and practice since the launch of pilot projects in seven provinces and cities including Beijing and Shanghai in 2011

The national carbon market accelerates

The "Administrative Measures" pointed out that units that belong to the industry covered by the national carbon emission rights trading market and whose annual greenhouse gas emissions reach 26,000 tons of carbon dioxide equivalent should be included in the list of key greenhouse gas emission units

The Ministry of Ecology and Environment, in accordance with the national greenhouse gas emission control requirements, comprehensively considers factors such as economic growth, industrial structure adjustment, energy structure optimization, and coordinated control of air pollutant emissions, and formulates the total carbon emission quota determination and allocation plan

"In the next step, the Ministry of Ecology and Environment will accelerate the construction of the national carbon emission rights registration system and trading system, gradually expand the market coverage of the industry, enrich the trading varieties and trading methods, and effectively use the market mechanism to control greenhouse gas emissions and promote green and low-carbon emissions.

According to Dong Xiucheng, a researcher at the National Opening-up Research Institute of the University of International Business and Economics, the acceleration of the carbon emission trading market is of iconic significance

There are still many challenges

In fact, China has been exploring the carbon emission trading market for the past 10 years, and has accumulated valuable experience for promoting the construction of a carbon market nationwide

"The pilot work of China's carbon market is very effective.

However, in the opinion of many interviewees, the complexity and challenges faced by local pilot projects to the national carbon market system cannot be underestimated

"When conducting carbon trading in pilot areas, companies in the competent department area are relatively familiar, and there are a series of administrative measures to regulate corporate behavior, but after it is upgraded to the national system, a more complete policy system is required

According to Duan Maosheng, deputy director of the Institute of Energy, Environment and Economics of Tsinghua University, both the allocation of allowances and the related accounting of carbon emission data need to be further adjusted and improved according to the actual subsequent operation

In addition, the company's carbon emission data is also affected by many factors, such as whether it is measured data or data calculated with emission factors or carbon content.

Carbon asset management becomes a compulsory course for enterprises

It is foreseeable that after the power generation industry is first included in the national carbon emission trading market, other key industries such as steel, cement, and chemical industry will also be included in an accelerated manner

"With the carbon trading market, carbon has become an important indicator of the competitiveness of enterprises

"In the future, more industries will be included in the carbon market trading system, which will have a structural impact on companies.

Dong Xiucheng said: “Everyone may think that production costs will rise after being included in the carbon market, and the pressure will increase, but on the other hand, after enterprises use technological transformation, input costs, and reduce carbon emissions, the remaining allowances can be used in the carbon market.
For
example, if petroleum companies develop geothermal resources, the reduced carbon emissions can be traded through the market or offset the carbon emissions of other refining and chemical sectors.
This is actually a means of income generation
.
"