China News Service, Beijing, July 14 (Reporter Ruan Yulin) Zhao Yingmin, Vice Minister of the Ministry of Ecology and Environment of China, stated at the State Council’s regular policy briefing on the 14th that the national carbon market chose to use the power generation industry as a breakthrough point, and that the carbon market in the power generation industry is operating in a healthy manner On this basis, gradually expand the market coverage to more high-emission industries.
At the end of 2020, the Ministry of Ecology and Environment issued a normative document "2019-2020 National Carbon Emission Trading Quota Setting and Distribution Implementation Plan (Power Generation Industry)", and announced the inclusion of 2225 power generation companies and self-provided power plants. List of key emission units under the management of national carbon emission rights trading quotas.
The first batch of 2,225 power generation companies will be allocated carbon emission allowances.
Why are more than 2,200 power generation companies included in the national carbon market in the first batch?
Zhao Yingmin said that the national carbon market chooses to use the power generation industry as a breakthrough point. There are two considerations: first, the power generation industry directly burns coal, which causes relatively large carbon dioxide emissions. There are more than 2,000 key emission units in the power generation industry across the country, including self-provided power plants. The annual carbon dioxide emissions exceed 4 billion tons. Therefore, the first batch of power generation industries can give full play to the positive role of the carbon market in controlling greenhouse gas emissions.
Second, the management system of the power generation industry is relatively sound and the data foundation is relatively good.
Accurate and effective acquisition of emission data is a prerequisite for carbon market trading.
The power generation industry has a single product, standardized data management, and easy verification, and the allocation of quotas is simple and easy.
Judging from international experience, the power generation industry is an industry that all countries’ carbon markets will prefer to include.
"The power generation industry has high carbon dioxide emissions and high coal consumption. It is first included in the power generation industry, which can simultaneously play a synergistic role in reducing pollution and carbon." Zhao Yingmin said.
Zhao Yingmin pointed out that in conjunction with the compilation of the national emission inventory, data accounting, submission and verification of high-emission industries such as power generation, petrochemical, chemical, building materials, steel, paper, and aviation have been organized and carried out nationwide for many years.
In the next step, we will speed up the revision of the national standards for the accounting and reporting of greenhouse gas emissions in related industries in accordance with the principle of maturity, approval and publication, and study and formulate quota allocation plans by industry.
Zhao Yingmin emphasized that after the healthy operation of the carbon market in the power generation industry, further expand the scope of the carbon market to cover industries and give full play to the important role of market mechanisms in controlling greenhouse gas emissions, promoting green and low-carbon technological innovation, and guiding climate investment and financing.
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