The hottest carbon emission trading system in Chin

2022-07-30
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China's carbon emission trading system and its future development trend

under the background of the increasingly serious global climate change and the frequent occurrence of various natural disasters related to climate change, controlling greenhouse gas emissions and realizing energy conservation and emission reduction have become the focus of global attention. As a major carbon emitter, China made a solemn commitment in 2009: by 2020, China's carbon dioxide emissions per unit of GDP will be reduced by% on the basis of 2005 The 12th Five year plan clearly sets a target that the total carbon dioxide emissions per unit of GDP in 2015 will be 17% lower than that in 2005. To achieve the above carbon emission reduction targets, in addition to actively developing and applying various new energy-saving and emission reduction technologies, carbon emission trading, a market-oriented means, can also effectively achieve the goal of reducing carbon emissions. At present, China is still practicing and exploring in the field of the construction of carbon emission trading system. The introduction of some new laws and regulations and normative documents provides an important basis for China to carry out carbon emission trading, and also allows all relevant subjects to meet the future development direction of China's carbon emission trading system

I. overview of the concept of carbon emissions trading the concept of carbon emissions trading originates from the concept of emissions trading put forward in the 1960s. It was first proposed by American economist dales in pollution, wealth and price in 1968, and first applied in the clean air act and its amendments of the United States. The so-called emission trading refers to the right of emitters to discharge pollutants into the environment according to law within the quota allocated by the environmental protection supervision and administration department and on the premise that the exercise of this right will not damage other public environmental rights and interests. Emission trading means that in a certain region, on the premise that the total amount of pollutant emissions does not exceed the allowable emissions, the internal pollution sources adjust their emissions through currency exchange, so as to achieve the purpose of reducing emissions and protecting the environment. Carbon emission trading is the extension of the emission trading system in the field of greenhouse gas emission reduction represented by carbon dioxide, that is, taking the carbon dioxide emission right as a commodity, by introducing the market trading mechanism, countries or enterprises are allowed to sell their excess emission quotas or additional emission reduction benefits to countries or enterprises that cannot achieve the emission reduction goals, so as to achieve the common emission reduction goals

the reason why the carbon emission trading system is established is that different countries or enterprises have different utilization rates and technologies for energy and offline online support sources, resulting in great differences in emission reduction costs among different countries and enterprises. If the same emission reduction goals are to be achieved, those enterprises with low energy utilization and backward emission reduction technologies are easy to achieve the emission reduction goals at a lower cost, or even exceed the targets; However, those enterprises with low energy efficiency and backward emission reduction technology need to pay higher costs to achieve emission reduction targets. Therefore, economists have proposed to let some enterprises sell their excess quotas to other enterprises with excess emissions, which can not only encourage enterprises capable of emission reduction to produce more emission reductions at a lower cost and develop new emission reduction technologies, but also enable enterprises with high emission reduction costs and weak emission reduction capabilities to complete the emission reduction targets at a lower cost, so as to achieve the goal of controlling the total carbon emissions in the most economical way

II. Laws, regulations and policies of China's carbon emission trading although China started the pilot work of emission trading as early as 1991, carbon emission trading is still a new thing. The relevant laws and regulations are not complete and lack basic legal provisions. The relevant systems and concepts are more reflected through policies, normative documents and some laws and regulations. The systematicness of the trading system is still insufficient

at the level of international law, China is a party to the United Nations Framework Convention on climate change and has also signed the Kyoto protocol. Although China does not undertake the obligation of mandatory emission reduction for the time being, Chinese enterprises and carbon emission reduction projects can participate in the clean development mechanism (CDM) as the seller of carbon emission reduction amount, so as to sell certified carbon emission reduction amount in the international market. Therefore, the earliest practice and system of carbon emissions trading in China are closely related to CDM projects. In order to better participate in CDM projects, China formally implemented the measures for the operation and management of CDM projects on october12,2005. According to e-carbon home, on August 3, 2011, the revised management measures for the operation of Clean Development Mechanism projects was officially implemented, and the original management measures for the operation of phosphorus flame retardant materials in Clean Development Mechanism projects subject to certain use restrictions were abolished at the same time. The new measures have made detailed provisions on the management system, application and implementation procedures, laws and other contents of CDM projects, and played an important role in promoting and standardizing the effective and orderly operation of CDM projects. However, due to the particularity of Clean Development Mechanism projects, the relevant provisions can not be generally applied to domestic carbon emissions trading. The establishment of domestic carbon emissions trading system still needs clear provisions of policies and regulations

In 2010, China issued the outline of the 12th Five Year Plan. The outline clearly proposes to establish and improve the statistical accounting system for greenhouse gas emissions and gradually establish a carbon emission trading market. This is the first time that the Chinese government has proposed to establish China's domestic carbon market in a national official document

in October, 2011, the national development and Reform Commission issued the notice on carrying out carbon emission trading pilot work, officially approving seven provinces and cities including Beijing and Shanghai as carbon emission trading pilot. It is planned to carry out regional carbon emission trading pilot before 2013, and carry out carbon emission trading nationwide from 2015 to establish a unified trading market

in December, 2011, the State Council issued the work plan for controlling greenhouse gas emissions during the 12th Five Year Plan period. The plan calls for accelerating the establishment of a statistical accounting system for greenhouse gas emissions and exploring the establishment of a carbon emission trading market. At the same time, the plan also specifically allocated the reduction targets of carbon dioxide emissions and total energy consumption in each province

in June, 2012, the national development and Reform Commission issued the Interim Measures for the management of voluntary greenhouse gas emission reduction transactions. The Measures specify the trading products, trading venues, new methodology application procedures for voluntary emission reduction trading, as well as the accreditation procedures for the qualification of approval and certification institutions, and solve the problem of lack of credit system in the domestic voluntary emission reduction market

in addition, under the requirements of the notice on carrying out the pilot work of carbon emission trading, the pilot implementation plan of Beijing has been reviewed and approved by the national development and Reform Commission, and the relevant pilot work has been initiated this year. On July 3 this year, Shanghai also issued the opinions of the Shanghai Municipal People's Government on the implementation of the pilot work of carbon emissions trading in Shanghai, and plans to issue the administrative measures for the pilot work of carbon emissions trading in Shanghai by the end of this year. This will provide an important legal basis for Shanghai to carry out carbon emission trading pilot

III. interpretation of current key regulations, policies and legislative trends of carbon emissions trading under the background that the 12th Five year plan clearly proposes to establish a carbon emissions trading market, some regulations and normative documents issued by China have important reference value for standardizing carbon emissions trading practice and clarifying future legislative trends. Among them, the Interim Measures for the administration of voluntary emission reduction trading of greenhouse gases promulgated by the national development and Reform Commission, the pilot implementation plan formulated by Beijing in accordance with the notice on the pilot work of carbon emission trading, and the implementation opinions of the Shanghai Municipal People's Government on the pilot work of carbon emission trading issued by Shanghai in accordance with the above notice deserve our attention

(I) interpretation of the Interim Measures for the administration of voluntary greenhouse gas emission reduction trading under the situation that China has carried out some project-based resource carbon emission reduction trading activities, the issuance of the Interim Measures for the administration by the national development and Reform Commission will help to solve the problem of the lack of credit system in the domestic voluntary emission reduction market and standardize the domestic voluntary emission reduction trading market, which is an important step in the construction of China's carbon trading system and market. The measures mainly include the following contents

1. Purpose of promulgation of the measures according to the notice of the national development and Reform Commission on Promulgating the measures and the provisions of the relevant provisions of the measures, the purposes of promulgation of the measures are: 1. Responding to the call for the gradual establishment of a carbon emission trading market put forward in the 12th five year plan; 2、 Provide legal basis for some voluntary emission reduction activities already carried out in China; 3、 Encourage project-based voluntary greenhouse gas emission reduction transactions; 4、 Cultivate market awareness of carbon emission reduction to prepare for the establishment of a unified national trading market in the future

2. Applicable objects of the measures first, the measures are applicable to six types of greenhouse gases, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride

secondly, the measures are mainly applicable to the following projects: 1) voluntary emission reduction projects developed using the methodology filed by the national competent department; 2) Projects approved by the national development and Reform Commission as clean development mechanism projects but not registered with the Executive Board of the United Nations Clean Development Mechanism; 3) Projects that have been approved by the national development and Reform Commission as clean development mechanism projects and have generated emission reductions before registration with the Executive Board of the United Nations Clean Development Mechanism; 4) Projects that are registered with the Executive Board of the United Nations clean development mechanism but whose emission reductions have not been issued. It should be noted that the above-mentioned projects must meet the two preconditions of being examined and approved by the examination and approval institution filed by the national competent department, issuing the project examination and approval report, and starting construction after february16,2005. In fact, we can see that the types of projects to which the Interim Measures apply are set for CDM projects. Bringing the actual emission reductions generated by CDM projects in the process of applying for UN registration that are not certified by the United Nations and cannot be traded on the international market into the domestic carbon emission trading market will help to achieve the goal of encouraging project-based voluntary emission reduction trading of greenhouse gases

3. Recognition and transaction of emission reductions in terms of recognition of emission reductions, as long as the method requires certification by a certification institution filed with the national competent department and issues a certification report on emission reductions, the emission reductions can be recognized. For the identified emission reductions, the method also adopts a unified name (CCER) and unit (tco2e); In terms of emission reduction trading, the Measures stipulate that certified emission reductions can be traded in any trading institution that has been filed with the national competent authority. This means that after the enterprises are filed, the emission reductions generated by them will be easier to be recognized and can be traded nationwide. Moreover, the adoption of CCER also means that these emission reductions can be connected with the pilot schemes in various regions in the future

4. Inadequacies of the interim measures although from the perspective of encouraging voluntary carbon emissions trading, the interim measures aim to make domestic enterprises familiar with carbon emissions trading as soon as possible and deal with the pressure of mandatory emission reduction that may come from the international arena in the future, which can be said to provide an important basis for China to establish a carbon emissions trading system and market, the inadequacies of the Interim Measures are also obvious, Including: no clear conversion rules and measurement standards between greenhouse gases; There is no specific transaction procedure; Lack of regulatory provisions on the trading market, etc. This may lead to the fact that all trading entities are unable to rely on relevant issues after participating in carbon emission trading, and suffer unnecessary loss of interests, thus undermining the enthusiasm of relevant entities to voluntarily participate in carbon emission trading. Relevant management organizations shall, in accordance with future practice, continuously define and refine their own

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