The cumulative transaction volume exceeded 9.8 billion yuan! Hubei carbon market continues to release new momentum for emission reduction

"Hubei supports an average annual economic growth of 6% with an average annual energy consumption growth rate of 3%, and supports the seventh economic aggregate with the 22nd largest energy consumption intensity in the country." Wang Zhonglin, Deputy Secretary of the Hubei Provincial Party Committee and Governor, said at a series of press conferences on the theme of "Promoting High-Quality Development" recently held by the State Council Information Office.

The carbon market is one of the important policy tools to promote "dual control" of energy consumption and carbon emissions. As an important province in the Yangtze River Economic Belt, Hubei Province is of great significance to make good use of the carbon market mechanism to accelerate the promotion of green and low-carbon development. Since the Hubei carbon emissions trading pilot was launched in 2014, the transaction volume and turnover of the carbon market in Hubei Province has long remained the first in the country.

Data shows that as of June 21, 2024, the cumulative transaction volume of the carbon market in Hubei Province was 403 million tons, with a transaction volume of 9.806 billion yuan, accounting for 42.9% and 41.7% of the total transaction volume and total transaction volume of various local carbon markets respectively.

Build a "bottom database" of the national carbon market with high standards

The registration system records information such as the holding, change, payment, and cancellation of carbon emission quotas, and provides settlement services, which is the final basis for judging the ownership of carbon emission quotas. The registration system and the trading system are interconnected and together constitute the national carbon market business support system.

In July 2021, the National Carbon Emissions Trading Market (hereinafter referred to as the National Carbon Market) launched online trading. The National Carbon Emissions Registration, Registration and Settlement System (hereinafter referred to as China Carbon Deng) located in Wuhan City, Hubei Province is responsible for the construction and operation and maintenance of the national carbon emission rights registration system. The visible K-line chart of red and green intertwined market transactions and the invisible carbon trading data are running rapidly...

As the "carbon asset brain" of the national carbon market, since its establishment, China Carbon Corporation has operated at a high speed, strongly supporting the National Carbon Market, the world's largest carbon market. Data shows that as of June 24, 2024, the cumulative transaction volume of carbon emission quotas in the national carbon market was 461 million tons, with a cumulative transaction volume of 26.627 billion yuan. China Carbon Corporation manages 2533 companies across the country and is the "underlying database" of the national carbon market.

Hubei's carbon market coverage is gradually expanding

Since the launch of the carbon trading pilot construction in November 2011, Hubei has continuously carried out exploration and practice in carbon market system design, platform construction, product innovation, market supervision, service innovation, etc., and has continuously cultivated and expanded market entities. According to the "Hubei Province 2022 Carbon Emission Quota Allocation Plan", Hubei's carbon market has included a total of 16 industrial industries including heat production and supply, steel, petrochemicals, and chemicals. The threshold for enterprise inclusion has gradually been reduced from the initial 60,000 tons of standard coal to 10,000 tons, and the number of companies covered has expanded from 138 in the first year to a maximum of 373. After the launch of the national carbon market, power generation companies in Hubei Province entered the national carbon market. Hubei carbon market currently has more than 20,000 market entities of various types.

Hubei has a first-mover advantage in carbon market construction and carbon industry development. Focusing on China Carbon Deng Building, more than 200 carbon-related service companies and institutions have gathered, and the agglomeration effect of dual-carbon industries has gradually emerged.

Carbon finance innovation accelerates green and low-carbon transformation

Accelerating the promotion of green and low-carbon transformation is one of the key tasks in further promoting the practical exploration of the "Five Eases" Chinese-style modernization in Hubei.

Hubei Province took the lead in opening up a collaborative pilot program for the three markets of "electricity-carbon-finance", initially forming a full carbon finance industry chain such as carbon trading mechanism, carbon asset management, carbon rating, and carbon credit. On May 31 this year, the country's first electricity-carbon-financial three-market collaborative transaction was launched in Wuhan. At the scene, four electricity companies, including Changfei and Chaoying Electronics, reached cooperation intentions with two financial institutions, Bank of Communications and China Merchants Bank. The four electricity companies will receive a low-interest green loan of 72.5 million yuan to purchase 154 million kilowatt hours of green electricity, which is expected to deduct up to 110,000 tons of carbon quotas in the carbon market. The green financial credit model that is linked to green electricity consumption and carbon assets encourages enterprises to consume green while effectively reducing enterprises 'financing costs, supports enterprises' green and low-carbon transformation, and cultivates new momentum in green transformation.

Since the beginning of this year, the Hubei Province Carbon Emissions Trading Center has further reduced corporate financing costs, broadened corporate financing channels, and promoted the green and low-carbon transformation and development of emission control enterprises by reducing carbon repurchase service fees. So far, Hubei Carbon Market has completed 11 carbon repurchase businesses, raising a total of more than 200 million yuan in funds for enterprises.