Shanghai Carbon Market has 100% compliance for 11 consecutive years

The transaction amount exceeded 5 billion yuan

Sinochem News reporter recently learned from the Shanghai City Ecological Environment Bureau that as of September 30, Shanghai pilot carbon market management enterprises have all completed the payment of carbon emission quotas in 2023, setting a record of 100% performance for 11 consecutive years. Since the launch of the Shanghai pilot carbon market, a total of 256 million tons of spot transactions have been completed, with a transaction value of 5.081 billion yuan.

In November 2011, the National Development and Reform Commission identified seven provinces and cities to carry out regional carbon emissions trading pilots, and Shanghai is one of them. Data released by the Shanghai Department of Ecology and Environment at the beginning of this year shows that 378 key emission companies have been included in the Shanghai carbon market, involving 28 industries including steel, power, chemicals, aviation, water transportation, and construction, as well as 16 industries and 197 companies 10 years ago. Compared with 197 companies, the carbon market is more comprehensive and mature.

At present, enterprises included in carbon emission quota management account for more than 60% of the city's carbon emissions. In terms of emission reduction effects, Shanghai's carbon dioxide emissions per unit of GDP have dropped by more than 50% in the past 10 years, and the carbon market has contributed significantly.

According to the Shanghai City Bureau of Ecology and Environment, this year's Shanghai pilot carbon market has innovated a synergy mechanism for pollution reduction and carbon reduction, providing preferential measures to increase the proportion of direct distribution quotas to enterprises that have performed well in synergy of pollution reduction and carbon reduction in the atmospheric field. The purpose is to guide and encourage participants to "walk on two legs." This year, five companies in Shanghai have enjoyed preferential policies to increase the proportion of direct quotas by 0.5% or 0.3%.

This year, Shanghai also innovated a pre-quota early issuance mechanism. After completing the performance and payment of 2023 quotas, the management unit will issue 2024 pre-allocated quotas based on 80% of the 2023 approved emissions, which can be used for market transactions. This move has increased the activity of the carbon market. Currently, Shanghai has issued pre-quotas to 153 companies in advance, totaling 28.76 million tons. The quota transaction volume has increased by 108% year-on-year, and the transaction volume has increased by 133% year-on-year.

The reporter learned that among the pilot carbon market management companies in Shanghai, there are more than 50 petrochemical companies. The reporter interviewed the person in charge of the carbon trading business of a petrochemical company in Shanghai and learned that the company had completed the 2023 carbon quota performance and payment in September this year. At the same time, the company is also actively reducing carbon through measures such as carbon reduction projects, carbon quota transactions, green electricity transactions, and carbon inclusive transactions, and reserves carbon quotas for the coming year.