Soliciting opinions from the public on the total national carbon emission quota and allocation plan for 2023 and 2024

On July 2, the Ministry of Ecology and Environment issued the "National Carbon Emissions Trading Power Generation Industry Quota Total and Allocation Plan for 2023 and 2024 (Draft for Comments)"(hereinafter referred to as the "Quota Plan"). The main body of the "Quota Plan" includes eight aspects: working principles, implementation scope, unit classification, quota allocation methods, quota issuance, quota settlement, quota carry-over, and quota treatment when key emission units are merged, separated, or shut down.

It is understood that compared with the "Implementation Plan for Setting and Allocation of National Carbon Emissions Trading Quota Total in 2021 and 2022 (Power Generation Industry)", the "Quota Plan" optimizes the following aspects on the basis of maintaining policy continuity and stability. Improve, as follows.

The first is to optimize the basic parameters of quota allocation, from approving quotas based on power supply to approving quotas based on power generation. The power supply is obtained by subtracting the electricity consumption of production-related auxiliary equipment from the power generation facility, and is not obtained through direct measurement. Because the power consumption of production-related auxiliary equipment is difficult to accurately calculate and verify, the power supply is difficult to accurately measure, and the data quality is at high risk. In order to ensure the authenticity, accuracy and reliability of various parameters in the quota allocation process, the "Quota Plan" adjusts "power supply quotas based on power supply quantity" to "power generation quotas based on power generation quantity", that is, based on the power generation generated by the unit, the power generation benchmark value and Relevant correction factors are calculated to obtain the unit's power generation quota, and the power supply quantity and-26-power supply benchmark value are no longer used to calculate the quota.

The second is to cancel the correction factor for unit heat supply. The 2021 and 2022 quota allocation plans have set a heat supply correction factor. The main purpose is to encourage high-efficiency coal-fired cogeneration units to increase heat supply to replace small coal-fired boilers and bulk coal-burning heating. The heat supply correction coefficient is based on statistical fitting of a large number of measured samples, and needs to use the heat supply ratio as a key parameter for calculation. Judging from the actual operation conditions in the first and second performance cycles, the heating ratio calculation procedure is cumbersome and difficult to obtain accurately, resulting in deviations in the calculation results of the heating amount correction coefficient. In view of this, the "Quota Plan" eliminates the heating quantity correction factor in the quota calculation formula, but instead adjusts the benchmark value to achieve reasonable incentives for heating of generating units.

The third is to adjust the unit load (output) coefficient correction coefficient to the unit peak shaving correction coefficient, and revise the scope of application. In order to consume more renewable energy such as wind power and photovoltaics, some thermal power units undertake power grid peak regulation tasks and are in low-load operation. A "load factor correction factor" is set in the 2021 and 2022 quota allocation plans, and units with a load ratio below 85% can receive compensation quotas to reflect the encouragement and compensation for units undertaking peak shaving tasks. According to statistics, in 2022, the annual average load rates of conventional coal-fired units above 300MW, conventional coal-fired units above 300MW, unconventional coal-fired units and gas-fired units will be 67%, 65%, 63% and 69%, respectively. The average load rate of units across the country is about 65%. With the increase in the proportion of non-fossil energy power generation, the load rate of thermal power units has shown a downward trend year by year. Continuing to maintain the upper limit of 85% for load rate compensation is out of line. It is impossible to highlight the low load rate of peaking units, nor can it accurately support and encourage peaking units. The "Quota Plan" changes the name of the "load coefficient correction coefficient" to the "peak shaving correction coefficient" and adjusts the upper limit of the compensation load rate to 65%. Conventional coal-fired units with a unit load (output) coefficient of 65% or above will no longer introduce a correction factor greater than 1. During the statistical period, conventional coal-fired units with a unit load (output) coefficient of-27-below 65% are calculated according to the original calculation formula and a peak shaving correction factor greater than 1 is used to obtain compensation quotas.

Fourth, indirect carbon dioxide emissions from purchased and used electricity will no longer be included in the scope of quota management. The scope of control of the power generation industry in the first and second performance cycles includes indirect carbon dioxide emissions generated by purchased and used electricity. It is estimated that the proportion of indirect emissions in the power generation industry to the total direct emissions is relatively low, and the emission reduction effect of including indirect emissions is limited, but it significantly increases the workload of enterprises reporting and accounting for indirect emissions, as well as the supervision costs of verification by ecological and environmental authorities. In view of this, the Quota Plan no longer includes indirect carbon dioxide emissions generated by purchased and used electricity into consideration in quota allocation, and adjusts the quota benchmark value accordingly.

The fifth is to introduce a quota carry-over policy. The quota carry-over policy stipulates the conditions for quotas held by market entities to be retained for subsequent years, guiding trading entities to adjust trading strategies and adjust quota supply and demand. Referring to practical experience and practices at home and abroad, in order to encourage enterprises with quota surplus to sell quotas and release quota supply, the "Quota Plan" proposes quota carry-over regulations, linking the maximum carry-over amount of quotas for key emission units with trading behavior, and clarifying the relevant rules for the transfer of quotas, including the requirements for quota use in each year, carry-over objects, time schedule, calculation of carry-over amount, and carry-over application process, etc.