The cumulative transaction volume in the national carbon market is 26.865 billion yuan, and companies suggest adding carbon financial products
Data from the National Carbon Emissions Registration and Settlement System (China Carbon Deng) shows that as of July 5, the cumulative transaction volume in the national carbon emissions trading market was 464 million tons, with a cumulative transaction volume of 26.865 billion yuan.
On July 5, the "Two Lakes Dialogue" International Cooperation Matchmaking Meeting on Carbon Market and Carbon Finance was held in Wuhan. The reporter of "Economic Daily News" learned at the meeting that after entering the second performance cycle, the transaction volume in the national carbon market increased by 19% compared with the first performance cycle, the transaction volume increased by 89%, and the number of companies participating in transactions increased by nearly 50%.
Data from the National Carbon Emissions Registration and Settlement System (China Carbon Deng) shows that as of July 5, the cumulative transaction volume in the national carbon emissions trading market was 464 million tons, with a cumulative transaction volume of 26.865 billion yuan. Huang Dai, deputy general manager of Carbon Emissions Registration and Settlement (Wuhan) Co., Ltd., said that since the launch of the national carbon market, transactions have become increasingly active, carbon prices have steadily increased, and market functions have gradually been demonstrated.
The reporter noticed that in the face of the continuous release of signals for carbon market expansion and the rising trend of carbon prices, some companies have proposed to participate in the carbon market, including increasing carbon financial products, increasing companies 'performance paths in the carbon market, and reducing performance costs and risks.
Carbon trading prices rise by about 90% in three years
On July 5, the average transaction price in the national carbon market was 91.16 yuan/ton. Compared with 48 yuan/ton when it was launched in July 2021, the carbon quota price increased by about 90%.
"It has enhanced enterprises 'awareness of low-carbon development that' carbon emission has costs and carbon reduction has benefits.' Regarding the development of the carbon market in recent years, Zhu Guohui, vice chairman and general manager of Carbon Emissions Registration and Settlement (Wuhan) Co., Ltd., said that through two performance cycles, the cost of carbon reduction in the national power industry has been reduced by approximately 35 billion yuan., effectively implementing the social responsibility of enterprises to reduce carbon performance.
Data shows that China Carbon Corporation undertakes the functions of registration, trading, and settlement of the national carbon emissions trading market, provides comprehensive management services such as carbon emission quota allocation and performance of ecological environment departments at all levels across the country, and provides carbon emissions trading accounts for incorporated entities. Market-based services such as account opening, transaction settlement, and asset management.
Zhu Guohui introduced that after the national carbon market was officially launched in July 2021, it included 2162 companies in the power industry, with an emission allocation of about 4.5 billion tons, accounting for 40% of the country's total carbon emissions. Currently, transactions are becoming increasingly active and prices have also shown a rising trend; currently, the allocation quota in the two performance cycles exceeds 19 billion tons, and based on current market prices, asset prices exceed 1.5 trillion yuan.
It is worth mentioning that the carbon trading market has been included in the power industry, but currently my country's high-emission industries also include steel, building materials, nonferrous metals, petrochemicals, etc. As the scale of carbon trading in the power industry increases, the voice of carbon market expansion has also begun to appear.
Regarding future changes in the carbon market, Zhu Guohui believes that the expansion of the national carbon market is a high probability event. This year, the cement, electrolytic aluminum and steel industries will be added, and the annual carbon allocation will reach about 8 billion tons; the number of participants will increase, such as qualified institutional investors; the variety will gradually increase; the distribution methods will be more diversified. Currently, quotas are allocated for free, and paid distribution may be carried out starting next year; it will further reflect the marginal cost of carbon emissions, and the price of carbon emissions will rise upwards; Carbon-mediated green finance will grow rapidly.
Companies advise on how to respond to changes in the carbon market
With active carbon market trading and steady increase in carbon prices, some key enterprises included in the national carbon market have achieved initial results in promoting their own green and low-carbon development.
Huang Dai introduced that since the opening of the national carbon market, emission control companies have accelerated the establishment of professional carbon market management companies to participate in key areas such as carbon asset operations, data quality management, and green and low-carbon investment. For example, Sinochem Energy Carbon Asset Operation Co., Ltd., a subsidiary of Sinopec, has achieved profitability in carbon trading investment and used investment profits to support renewable energy and low-carbon investment.
As the carbon market expansion signals continue to be released and carbon prices show an upward trend, some companies are also thinking about how to better participate in the carbon market and put forward corresponding suggestions. Suo Haixiang, project manager of China Coal Group's Carbon Asset Management Center, said that rising carbon prices is an inevitable trend. Which industries will be included in the future expansion of the carbon market, and what impact will it have on the existing carbon market after inclusion, including changes in quota allocation plans, quota performance, etc. These are issues that energy companies need to consider in participating in the carbon market. We hope to accelerate the construction of the carbon market policy system, enhance enterprises 'carbon market expectations, and increase the paths for enterprises to comply in the carbon market. Reduce corporate performance costs and risks.
Fang Long, general manager of the carbon asset operation and management department of Sinochem Energy Carbon Asset Operation Co., Ltd., said that in the future, the volume of carbon assets managed by the petrochemical and chemical industries will increase exponentially. The primary task of the management team is to help enterprises reduce performance costs; It is hoped that the expansion process of investment institutions will be accelerated, and more and more rich carbon asset management models will enter the market to help enterprises carry out risk management and asset operations.
Liu Gengshi, environmental protection director of Jingneng Shiyan Thermal Power Co., Ltd., said that carbon market trading products need more innovation to reflect financial attributes. Development products and derivative products based on carbon quotas, such as carbon futures, carbon options, carbon claims, etc., if incorporated into the trading system, the carbon market function will be more fully exerted, and the market potential will be more fully released, greatly stimulating market vitality.
The reporter noted that some institutions have launched financial innovation products and services based on the carbon market. For example, China Minsheng Bank has enriched the supply of green and low-carbon financial products, including national carbon quota loans, national carbon quota guaranteed letters of credit, and local carbon across performance periods. Quota guaranteed loans, etc., also set up a carbon finance innovation laboratory in China Carbon Deng Building, focusing on strengthening carbon finance business research, innovative project services, platform exchanges, etc., and exploring the development of carbon bonds, carbon forwards, carbon options and other products; In 2023, CITIC Securities and a Hubei enterprise will implement the first domestic carbon emission quota transaction based on Hubei. The company will revitalize the pre-allocated carbon trading rights through repurchase transactions.
