Our article: How can the cement industry more proactively integrate into the national carbon market?
The cement industry is the basic industry of the national economy and one of the main sources of industrial carbon emissions. Recently, the "National Carbon Emissions Trading Market Work Plan for Covering the Cement, Steel, and Electrolytic Aluminum Industries" has been publicly solicited from the public. The Ministry of Ecology and Environment has released greenhouse gas emission accounting reports and verification technical guidelines for enterprises in cement and other industries, marking the national carbon emissions. The expansion of the trading market has taken key steps. Since its launch in 2021, significant progress has been made in the construction of institutional norms, regulatory mechanisms, and system platforms for the national carbon market. As the national carbon market expands, what challenges will cement industry companies face? How should we respond?
Integrating the cement industry into the national carbon market will face two major challenges
Overall, the cement industry will face two major challenges when integrating into the national carbon market.
On the one hand, there are shortcomings in the quality management of carbon emission data. Carbon emission-related parameters and production data are an important basis for the verification of corporate carbon emission quota amounts and determination of payment and compliance amounts. Compared with the power generation industry that has been included in the national carbon market, the direct carbon emissions of the cement industry mainly come from the clinker production process. Carbonate decomposition and fossil fuel combustion have more measurement parameters, higher testing requirements, more production links and longer processes, making data quality management more difficult.
On the other hand, some enterprises are under greater pressure to pay and fulfill their carbon emission quotas. Since the allocation of carbon emission quotas adopts the idea of carbon emission intensity control, based on the nationally unified carbon emission benchmark value, the higher the energy efficiency and carbon efficiency level, the smaller the quota gap or even surplus, and otherwise, there will be a gap. The cement industry has high carbon emissions and difficulty in reducing emissions. Some enterprises have low energy efficiency and carbon efficiency levels. There may be a large quota gap. Coupled with factors such as rising carbon prices and poor cost-sharing mechanisms, the high cost of carbon emission quota compliance will reduce corporate profits and development capabilities.
The author believes that enterprises in the cement industry should place active participation in the national carbon market in a prominent position in enterprise operation and management, benchmark and table carbon market regulations, technical specifications and quota plans, familiarize themselves with market operation rules, system platforms, and technical points as soon as possible, and identify their own potential risk points, accelerate the improvement of the entire process and entire chain management capabilities of carbon emission, improve the level of carbon asset management and low-carbon sustainable development capabilities, and do a good job in paying and fulfilling carbon quotas at a high level.
Start with four aspects to do a good job in paying and fulfilling carbon quotas at a high level
We must attach great importance to it ideologically. From the decision-making level, management level to the execution level, we must accurately understand and grasp the important role of the national carbon market mechanism in my country's response to climate change and promoting carbon peak and carbon neutrality, and strengthen our understanding of the basic principles, laws and policies of the national carbon market. Systematic study of operating rules, technical specifications, etc.Xiand comprehensive mastery. Identify the gaps and challenges of enterprises in system construction, organizational structure, staffing, performance management, etc., carry out capacity-building activities such as training at levels, categories, and on a regular basis, and fully incorporate participation in the national carbon market into enterprise production plans, operation scheduling, daily management, supervision and assessment and other business management systems, enhance the ideological consciousness and action consciousness of enterprises to optimize, improve or even reshape the carbon asset management system, and fully mobilize the enthusiasm of relevant personnel of the enterprise, Initiative and creativity.
Management must be comprehensively improved. Strengthen the deliberation and coordination mechanism and the construction of internal institutions for enterprises to participate in the national carbon market work, and strengthen overall coordination, daily scheduling, supervision and assessment. Enterprises with conditions can introduce third-party service agencies, or they can give full play to the advantages of grouping and scale to establish carbon asset management companies. Adhere to the combination of external introduction and internal training, promote the transformation and improvement of measurement, testing, production, procurement, finance and other personnel, and cultivate a carbon emission management team covering carbon emission monitors, accountants, reporters, traders, etc. Comprehensively sort out and revise corporate rules and regulations, improve departmental responsibilities, optimize management processes, clarify work procedures, strengthen the updating and verification and calibration of measurement and laboratory equipment, improve the refinement and intelligence of measurement and the standardization of "collection, production, transformation and storage" of test samples. Level, optimize and improve ledger records, statistical accounting, monthly certificate storage and annual reports, cooperate with third-party professional verification and review, solidly rectify problems in all links, and avoid the risk of data breach of trust and law.
We must vigorously tackle carbon reduction. Combined with the "double control" target requirements of carbon emissions and the carbon budget in the region, predict the change trend of future energy consumption and carbon emissions. Give full play to the role of professional technical forces, organize and carry out comprehensive diagnosis of enterprise energy efficiency and carbon efficiency, and identify strategies, paths and technical routes for improving energy efficiency and carbon efficiency. Dynamically benchmark energy efficiency benchmarks and even benchmark levels and carbon emission benchmark values, proactively analyze the trend of carbon pricing and carbon constraints, strengthen the necessity and economic demonstration and analysis of the reserve and construction of green and low-carbon projects, and orderly carry out energy-saving and carbon reduction transformation such as waste heat power generation. Upgrade, accelerate the renewal of metering equipment, energy-using equipment and production equipment. Carry out carbon peak and carbon neutrality actions in stages and steps, tap the potential for carbon reduction through measures such as process optimization, fuel blending, raw material substitution, and digital empowerment, gradually optimize the energy use structure and improve energy efficiency and carbon efficiency levels.
We must be timely and proactive in fulfilling the contract. Based on production realities and quota policies, carry out trial calculations of carbon emission quotas and performance pressure tests, strengthen analysis and judgment of the carbon emission surplus and deficit situation, and find out the "bottom line" of carbon assets. Track the national carbon market conditions, strengthen transaction fund needs analysis and budget arrangements, establish a carbon trading authorization mechanism and a more flexible fund use mechanism, flexibly participate in market transactions, avoid cluster transactions and high-priced transactions, control and reduce market transaction costs, and implement the accounting system related to carbon emissions rights to prevent potential transaction risks and legal risks. Make full use of the carbon emission quota offset mechanism, participate in national voluntary greenhouse gas emission reduction transactions, and reduce payment and performance costs. In accordance with policies such as quota payment and performance, exemption and carry-over, payment and performance shall be carried out on time and in full, and environmental information such as carbon emissions shall be disclosed in a timely manner in accordance with the law.
Author's unit: Xu Rui, Xiang Liu, Sichuan Province Environmental Policy Research and Planning Institute; Zhang Kui, Sichuan Province Cement Association
