This newspaper article: Give full play to the role of the carbon market to help the research and development and promotion and application of low-carbon technology innovation

Innovative R&D, promotion and application of advanced low-carbon technologies are the key drivers for safe, fair, green, low-carbon and high-quality economic and social development, and the fundamental requirements for actively responding to climate change and building a beautiful China. Recently, the Ministry of Ecology and Environment issued the "Implementation Plan for the Collection and Promotion of National Key Low-carbon Technologies" (hereinafter referred to as the "Plan"), which clarifies the guiding ideology, working principles and main objectives of the collection and promotion of national key low-carbon technologies, points out the key directions for the research and development, promotion and application of advanced low-carbon technologies, and proposes safeguard measures for implementation. The Plan is an important measure to completely, accurately and comprehensively implement the new development concept, take the national strategy of actively responding to climate change as the guide, mobilize the strength of the whole country, make overall arrangements, and systematically promote the research, breakthrough and promotion and application of low-carbon technologies in key directions, which will effectively promote the realization of carbon peak and carbon neutrality, and make new and greater contributions to the modernization of building a beautiful China and comprehensively promoting the harmonious coexistence of man and nature.

The Plan establishes an important policy mechanism for the government to guide the R&D, promotion and application of advanced low-carbon technology innovation. In order to effectively implement the Plan and effectively promote the R&D and promotion of low-carbon technologies, it is necessary to adhere to the organic unity of the role of the market and the role of the government, and attach importance to the important role played by the market in the development and promotion of low-carbon technologies.

The CPC Central Committee and the State Council attach great importance to the important role of market mechanisms in the development and promotion of low-carbon technologies. At the 36th collective study of the Political Bureau of the Central Committee of the Communist Party of ChinapracticemiddlepracticeNear-flatThe general secretary stressed that it is necessary to pay close attention to tackling key problems in green and low-carbon technologies, accelerate the research and development, promotion and application of advanced and applicable technologies, establish and improve the evaluation and trading system of green and low-carbon technologies, and accelerate the transformation of innovative achievements. The "Opinions of the Central Committee of the Communist Party of China and the State Council on Completely, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality" requires the government and the market to work together to build a new national system, strengthen scientific and technological and institutional innovation, and accelerate the green and low-carbon scientific and technological revolution. The Action Plan for Peaking Carbon Emissions Before 2030 points out that the role of the government should be better played, a new national system should be built, the role of market mechanisms should be given full play, green and low-carbon technological innovation should be vigorously promoted, reforms in energy and related fields should be deepened, and effective incentive and restraint mechanisms should be formed.

Market mechanisms, especially carbon trading market mechanisms, will play an important role in innovative research and development and the promotion and application of advanced low-carbon technologies. The core role of carbon trading is to build a carbon emission incentive and restraint mechanism through the formation of a reasonable carbon price, that is, "carbon emissions must be paid, and carbon emission reduction will be profitable". By releasing carbon price signals with incentives and constraints, the carbon trading market mechanism encourages the R&D and promotion and application of advanced low-carbon technology innovation, restricts the use of high-carbon emission technologies and eliminates backward production capacity, and provides spatial and economic incentives for the promotion and application of low-carbon technologies.

China has basically built a carbon trading system, including the national carbon emission trading market and the greenhouse gas voluntary emission reduction trading market. The national carbon emission trading is an important policy tool to achieve carbon peak and carbon neutrality, and the greenhouse gas voluntary emission reduction trading market is an important supplement to the national carbon emission trading market, and through the "offset mechanism" and the national carbon emission trading market, the national carbon emission trading market and the greenhouse gas voluntary emission reduction trading market provide an effective platform for the research and development and promotion of advanced low-carbon technologies.

China's voluntary greenhouse gas emission reduction system has provided important support for the development of renewable energy technology and industry. In March 2017, before China's voluntary greenhouse gas emission reduction trading system stopped accepting project applications and emission reductions were issued, about 77 million tons of CCER (China Certified Carbon Emission Reduction) had been issued, of which about 80% of the emission reductions came from renewable energy projects including wind power, photovoltaic and hydropower. From 2015 to the end of December 2023, the CCER trading volume was about 460 million tons, with a total turnover of about 6.8 billion yuan, and the installed capacity of wind power and photovoltaic power in China increased to about 3.6 times and 14 times respectively during the same period. It can be seen that China's greenhouse gas voluntary emission reduction trading market has supported the innovation and industrial development of renewable energy technology in China to a certain extent.

China's pilot carbon emission trading market has also played a role in promoting the development of low-carbon technologies in the industry. For example, from 2013 to 2020, more than 80% of the enterprises under the management of the pilot carbon emission trading market in Guangdong Province have implemented energy-saving and carbon-reduction technological transformation projects, more than 60% of the emission control enterprises have achieved a reduction in carbon intensity per unit of product, and the carbon emissions per unit of industrial added value of the electricity, cement, steel, paper and civil aviation industries covered by the Guangdong pilot carbon emission trading market have decreased by 11.8%, 7.1%, 12.7%, 15.9% and 5.4% respectively.

On January 22 this year, the national voluntary greenhouse gas emission reduction trading market was launched, and Vice Premier Ding Xuexiang of the State Council attended the launching ceremony. Offshore wind power and CSP are advanced low-carbon technologies that are of great significance for carbon peak and carbon neutrality, and the CCER generated by such projects will provide strong economic incentives for the development of offshore wind power and CSP technologies through carbon trading.

Since the launch of the national carbon emission trading market, key emitting enterprises have completed the implementation of the 2019-2020, 2021 and 2022 allowances with more than 99% of the quota payment, the overall operation of the trading market has been stable, and the carbon price has generally maintained an upward trend. The trading volume in 2023 will be about 212 million tons, and the total turnover will be about 14.44 billion yuan, an increase of 18.5% and 88.5% respectively compared with the first performance cycle (2019-2020), the closing price on December 29, 2023 will be 79.42 yuan/ton, an increase of 44.40% compared with the last trading day of 2022 (December 30, 2022), and the average market transaction price in 2023 will be 68.15 yuan/ton, an increase of 23.24% compared with the average market transaction price in 2022. The national carbon emission trading market has released a carbon emission price signal, providing possible economic incentives for the research and development and promotion of low-carbon technologies. For example, it is estimated that in the first compliance cycle of the national carbon emission trading market, key emitting enterprises will reduce emission reduction costs by about 13.8 billion yuan, and in the second compliance cycle, more than 900 power generation quotas will be short, mainly coal-fired power plants with small scale, old units, poor fuel quality and low efficiency, reflecting the constraint policy orientation of eliminating outdated production capacity and restricting high-carbon emission technologies. In addition, although the national carbon market currently only includes key emitting enterprises in the power generation industry, it will soon include high-emitting industries including steel, building materials, non-ferrous metals, petrochemicals, chemicals, and papermaking, which will further play an important role in promoting the research and development and promotion of advanced low-carbon technologies.

The continuous development and improvement of the national carbon emission trading market and the greenhouse gas voluntary emission reduction trading market will provide effective guidance for climate investment and financing, making climate investment and financing an important channel for the optimal allocation of green and low-carbon assets and resources, and will effectively promote the construction, promotion and application of low-carbon projects.

As the main body of advanced low-carbon technology innovation and R&D and application, enterprises should pay more attention to the application of the carbon trading market to promote the R&D and promotion of advanced low-carbon technologies. To this end, enterprises should first fully understand that carbon trading is an important way to promote enterprises to achieve carbon emission reduction and promote the research and development and application of advanced low-carbon technologies. Secondly, enterprises should continue to improve their own carbon emission management level, establish an internal carbon emission management system, continuously improve carbon asset management capabilities, actively participate in carbon trading, obtain effective economic incentives through research and development and promotion of low-carbon technologies, and explore more ways to achieve low-carbon technology research and development and promotion.

In addition, in order to make the carbon trading market mechanism play an important role in the research and development and promotion of low-carbon technologies, and to better play the role of the government, the competent authorities should continue to improve the carbon trading market mechanism policy and regulatory system, continue to consolidate the quality of carbon emission data and generate high-quality carbon credits, continuously improve the market function, and build a more effective, more dynamic and more internationally influential carbon trading market. Technological innovation capabilities and human resources will be directed to the field of green and low-carbon development, promote the innovation and promotion of advanced low-carbon technologies, and help achieve carbon peak, carbon neutrality and the construction of a beautiful China.

Author's Affiliation: National Center for Climate Change Strategy and International Cooperation