The national carbon market has been operating for three years and the effect of promoting industry emission reduction has gradually emerged
On the occasion of the 3rd anniversary of the operation of the national carbon market, the "National Carbon Market Development Report (2024)"(hereinafter referred to as the "Report") was released at the 2024 China Carbon Market Conference. The report shows that the carbon emission intensity of electricity in 2023 will drop by 8.78% compared with 2018. The effect of the national carbon market in promoting industry emission reduction has gradually emerged, and the main role of the carbon market in carbon pricing has been further strengthened.
The national carbon market is a key institutional arrangement for using market mechanisms to control greenhouse gas emissions. my country's carbon market consists of a national unified mandatory carbon emissions trading market and a voluntary greenhouse gas voluntary emission reduction trading market. In July 2021, with the power industry as a breakthrough, the national carbon emissions trading market launched online trading. "Compared with mandatory production and emission restrictions, the carbon emissions trading mechanism allocates carbon emission resources through market means, and enterprises 'emission reduction methods are more flexible and more conducive to promoting industry emission reduction." Zhao Yingmin, Deputy Minister of Ecology and Environment, said. He introduced a set of figures: On the premise of ensuring the rapid development and energy security of the power industry, the carbon emission intensity of national thermal power in 2023 will drop by 2.38% compared with 2018, and the carbon emission intensity of power will drop by 8.78% compared with 2018."Promote greenhouse gas emissions through the carbon market, promote energy structure adjustment, and encourage advanced and constrain backward are more obvious."
It is understood that the national carbon emissions trading market has successfully completed the construction and operation of two compliance cycles. The second compliance cycle has included a total of 2257 key emission units, covering approximately 5.1 billion tons of carbon dioxide emissions annually, accounting for 40% of the country's carbon dioxide emissions. Above, it is the world's largest carbon market covering greenhouse gas emissions.
The report shows that at present, key emission units in the power generation industry have established internal control systems for carbon emission management, of which more than 80% have full-time personnel responsible for carbon asset management and incorporate carbon asset management into daily production and operation activities. The vast majority of key emission units have evaluated their own emission reduction potential and costs, proactively adopted emission reduction measures such as low-carbon technology transformation and production process optimization, and conducted internal carbon emission reduction assessments. Activity in the carbon market has increased significantly, and the number of companies participating in transactions in the second compliance cycle has increased by 32% compared with the first compliance cycle. According to data from the National Carbon Market Information Network, as of July 17, the cumulative transaction volume of carbon quotas in the national carbon market reached 466 million tons, with a cumulative transaction volume of 27.026 billion yuan.
On January 25 this year, the State Council promulgated the "Interim Regulations on the Administration of Carbon Emissions Trading", which is China's first special regulation in the field of climate change response. It clarifies the main links and legal responsibilities of each entity in carbon emissions trading and related activities. With the promulgation and implementation of the regulations and the continuous advancement of related work in the third compliance cycle, carbon trading prices are also rising steadily. On April 24, the carbon price once exceeded 100 yuan per ton, and currently fluctuates around 90 yuan per ton. The report believes that the green financial attributes of carbon emission rights have gradually gained market recognition. The national carbon market transaction prices have anchored benchmark prices for climate investment and financing, carbon asset management, quota pledges, etc., leveraging more green and low-carbon investments, and promoting industry energy efficiency improvement and energy structure adjustment have shown a positive role in promoting green, low-carbon and high-quality development.
This report is the latest report on the progress of the national carbon market after the release of the "First Implementation Cycle Report of the National Carbon Emissions Trading Market" in December 2022. Zhao Yingmin said that in the future, the Ministry of Ecology and Environment will continue to release annual reports on the national carbon market.
