[Concurrent] Feng Luxi, a carbon trader at the Sichuan United Environment Exchange
I am a carbon trader, and my daily work is mainly (carbon emissions trading) account opening (etc.).
At present, with the proposal of the goal and vision of "3060", the carbon market has also derived some positions such as carbon traders, carbon verifiers, carbon managers and so on.
[Explanation] Recently, in the trading hall of Sichuan United Environment Exchange, carbon trader Feng Luxi is handling carbon emission trading accounts for enterprises.
Feng Luxi, 24, is the youngest carbon trader in the Sichuan United Environment Exchange, one of nine environmental exchanges in China.
[Explanation] In July 2021, the national carbon quota trading market officially launched online trading.
According to Feng Luxi, carbon trading is generally used to trade carbon dioxide emission rights as commodities on exchanges, with each ton of carbon dioxide equivalent as the unit of measurement.
[Concurrent] Feng Luxi, a carbon trader at the Sichuan United Environment Exchange
For example, this company A may get a quota of 800,000 tons (carbon emissions) this year, but it actually emits 1 million tons, then when it fulfills the contract at the end of the year, it will now have a shortfall of 200,000 tons, (for After completing the performance target), they can go to the market to purchase quota indicators.
If a company B has a surplus of quotas this year, then company AB can facilitate buying and selling transactions through a trading platform like our Sichuan Ring Exchange.
[Explanation] On the screen of the trading floor, the day's National Certified Voluntary Emission Reduction (CCER) trading information is scrolling in real time.
Feng Luxi said that the National Certified Voluntary Emission Reduction (CCER) is another basic trading product in the carbon market in addition to carbon emission quotas. Enterprises can purchase certified emission reductions to offset their own carbon emissions.
[Concurrent] Feng Luxi, a carbon trader at the Sichuan United Environment Exchange
The Chinese name of CCER is State-Certified Voluntary Emission Reduction, which is actually a supplementary mechanism for the quota just mentioned, an offset mechanism.
A simple understanding is all kinds of clean energy, such as hydropower, wind power, photovoltaic power generation, biogas, and some clean energy that can reduce carbon dioxide emissions, such as hydropower, wind power, photovoltaic power generation, and biogas, including forestry carbon sinks. It has been developed into a CCER product, and if it is developed, it can be placed on the trading platform of our Sichuan Huan Stock Exchange for trading.
For example, "Sichuan Biogas 02" actually refers to a biogas project from Sichuan.
(Currently) the price trend of the entire CCER is about 40 yuan (per ton), and the allowance price in the national carbon market is between 50 (yuan) and more than 60 (yuan per ton).
Therefore, this is also the reason why some key control units, if they have a (quota) gap, are willing to give priority to the market to purchase a certain percentage of CCER for clearing and fulfilling the contract.
Because the price of CCER is generally lower than the quota price, it can help key emission control units to reduce the cost of emission reduction (compliance) to a certain extent.
[Explanation] He Jinfeng, chairman of the Sichuan United Environment Exchange, introduced that currently only the power generation industry is included in China's carbon emissions trading market. According to the principle of "one mature industry, one industry", the coverage of China's carbon market will gradually expand in the future. The guiding role of market transactions will also be further evident.
[Concurrent] He Jinfeng, Chairman of Sichuan United Environment Exchange
Our country's carbon market was the first to include 2,162 power generation companies, and in terms of volume, it has covered 4.5 billion tons of carbon emissions.
In terms of this volume, it has surpassed the EU's carbon emissions trading system and has become the world's largest carbon market. This is not the trading scale, but the coverage of carbon emissions.
In the future, we will also include petrochemicals, chemicals, building materials, steel, non-ferrous metals and aviation. In this case, our national carbon market will have a larger volume.
In the carbon market, after the first compliance period (the end), companies are paying more and more attention to this market and are increasingly aware of the value of carbon emission rights.
From the comprehensive analysis of these factors, the future (carbon trading) market will be more active and mature.
Chen Xuanbin reports from Chengdu
Responsible editor: [Zhang Xi]