Zhang Xiliang of Tsinghua University: Significant progress has been made in the construction of the carbon market, connecting with the green certificate system to form a synergy

Recently, the Ministry of Ecology and Environment and the National Energy Administration jointly issued a notice requiring the connection between renewable energy green power certificates and voluntary emission reduction markets. How to use the "green certificate" that the market is generally concerned about? How to connect the "green certificate" system with the carbon market? In response to these questions, the cover reporter interviewed Zhang Xiliang, director of the Institute of Energy, Environment and Economics of Tsinghua University and chief scientist of the Center for Climate Governance and Carbon Finance of the Institute of Carbon Neutrality of Tsinghua University.

In an interview with a cover reporter, Zhang Xiliang said that in the past year, in order to actively respond to climate change, improve green and low-carbon development mechanisms, and respond to the "Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development" on strengthening green electricity, green certificates, and carbon. Policy coordination requirements for market-oriented mechanisms such as trading, the carbon market system and the green power certificate system have been gradually improved and effective connection has been achieved. All sectors of society should objectively understand the reasonable application scenarios of the green power certificate system so that it can play its due role in suitable fields.

Zhang Xiliang said that it is necessary to correctly understand the reasonable application scenarios of the green power certificate system. Judging from the current situation, there are mainly the following reasonable application scenarios for the green power certificate system. The first is to support local governments in completing dual-control assessments of energy consumption. The "Notice on Strengthening the Connection between Green Power Certificates and Energy Conservation and Carbon Reduction Policies to Vigorously Promote Non-Fossil Energy Consumption" clarifies that provincial governments can deduct energy consumption during the "14th Five-Year Plan" period through green certificate transactions. In order to complete energy consumption assessments, Zhejiang, Qinghai, Guangdong and other provinces have guided local companies to purchase green certificates on a large scale.

Second, key energy-using units complete their responsibilities for renewable energy consumption. The "Notice on the Weight of Responsibilities for Renewable Energy Power Consumption and Related Matters in 2024" clarifies that the electrolytic aluminum industry uses the green certificates it holds to calculate the completion of renewable energy consumption responsibilities.

Third, the international supply chain will increase the proportion of renewable energy. The "Notice on Full Coverage of Renewable Energy Green Power Certificates to Promote Renewable Energy Power Consumption" clarifies that domestic renewable energy electricity can only apply for and issue domestic green certificates. Accordingly, the International Tracking Standards Foundation announced that it would stop issuing international green certificates I-REC for renewable energy electricity in China. A large number of export-oriented enterprises will complete the renewable energy use ratio requirements in the international supply chain by purchasing China green certificates. However, green certificates cannot meet the requirements of all carbon-related scenarios. Internationally, the EU Carbon Border Regulation Mechanism and the EU Battery and Waste Battery Regulation have clearly not accepted all forms of green certificates in the latest documents, including European Source Guarantee Certificates. One of the main reasons for this is that it believes that purchasing green certificates lacks justification for the actual use of additional renewable energy in the product production process. Although companies currently joining the Science-Based Carbon Targets initiative (SBTi) can reduce their Scope 2 emissions by purchasing green certificates, in order to avoid the question of "greening", the current international mainstream trend is to promote full-time matching of supply and demand for green certificates, which is different from the current concept of green certificates in my country.

Zhang Xiliang pointed out that in terms of carbon footprint standards, the recently released General Rules for Product Carbon Footprint Accounting "Requirements and Guidelines for Quantifying Carbon Footprint of Greenhouse Gas Products" organized and compiled by the Ministry of Ecology and Environment clearly states that "reporting entities can select contract tools based on the needs of target users. Type", fully considering the coexistence of existing power trading contracts and energy attribute certificates (such as China Green Certificates, etc.) in my country, That is to say, if the country (region) where the target user is located recognizes the environmental benefits of China's green certificate in carbon footprint quantification, product carbon footprint quantification can be carried out based on the national standard, and can reflect the reduction of carbon footprint caused by the use of green electricity, which reflects The compatibility of product carbon footprint accounting standards with China's green certificate lays a foundation for international exchanges and mutual recognition of product carbon footprint accounting methods and data.

In terms of power emission factors, in order to support my country's enterprises in accurately accounting carbon emissions, the Ministry of Ecology and Environment and the National Bureau of Statistics jointly issued the "Announcement on Issuing the 2021 Electricity Carbon Dioxide Emission Factor", which announced the national fossil energy electricity carbon dioxide emission factor, and used Green certificates. Enterprises that calculate carbon emissions can use this factor for calculation. In the calculation, this factor deducts the country's non-fossil energy electricity, which deducts more than the electricity traded in green certificates. It takes into account operability and accuracy, and can effectively avoid double calculation of environmental values and make it easier to obtain international recognition., laying a technical foundation for my country's green certificates to enhance international recognition.

"At present, my country's carbon market construction has made significant progress and has formed a synergy with the green certificate system." Zhang Xiliang said that the carbon market has made significant progress in both the national carbon emissions trading market and the national voluntary greenhouse gas emission reduction trading market, and has actively responded to the "Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development" on strengthening green electricity, green certificates, and carbon. Policy coordination requirements for market-oriented mechanisms such as trading.

He pointed out that in terms of the carbon emissions trading market, the "National Carbon Emissions Trading Market Work Plan for Covering the Cement, Steel, and Electrolytic Aluminum Industries (Draft for Comments)" clarifies that direct emissions from the cement, steel, and electrolytic aluminum industries will be included in the control. About 1500 new key emission units have been added, covering a new increase of approximately 3 billion tons in emissions. At present, indirect emissions from the use of electricity are not included in the control for the time being. This does not mean that key industries will not need to increase the proportion of green electricity in electricity consumption in the future, but will allow key energy-using units to pass the green certificate assessment in the future. Policy space is left for the completion of responsibilities.

In terms of the voluntary emission reduction trading market, the "Measures for the Management of Voluntary Greenhouse Gas Emission Reduction Trading (Trial)" has been issued in the past year to formulate methodologies for projects such as far-reaching offshore wind power and solar thermal power generation; the first batch of China certified voluntary emission reduction (CCER) projects were officially launched in September, covering 5 solar thermal projects and 22 offshore wind power projects. In order to clarify the boundaries of the green certificate market and the voluntary emission reduction market, the competent authorities jointly issued the "Notice on Connecting Renewable Energy Green Power Certificates and the Voluntary Emission Reduction Market" to avoid far-reaching offshore wind power and thermal power generation projects from the mechanism level. The repeated benefits of green certificates and CCER will help accelerate the international recognition of my country's green certificates.