8 cities pilot low-carbon cities are determined to do carbon emissions trading

The Chinese government has explicitly decided to launch carbon trading pilots during the “12th Five-Year Plan” period and has continuously released signals that the “Measures for the Management of China's Greenhouse Gases Voluntary Emissions Trading Activities (Interim)” will be introduced soon. At the same time, the National Development and Reform Commission officials will be present during the Spring Festival. At a meeting held at the meeting, it was also revealed that a specific indicator of a decrease in carbon intensity (CO2 emissions per unit of GDP) may be allocated to all levels of government. To this end, the central government is currently accounting for the establishment of local government greenhouse gas emissions data.

These actions will lay the foundation for the future development of China's carbon market. However, as the current government work has not yet formed specific documents, it is still impossible to predict what kind of carbon emission reduction system China will eventually establish.

Determined to do carbon emissions trading

The "Twelfth Five-Year Plan" will be issued soon. On January 26, on the eve of the Lunar New Year holiday, Sun Cuihua, deputy director of the Department of Climate Change at the National Development and Reform Commission, stated at the inauguration ceremony of the Beijing Green Finance Association that the energy conservation and emission reduction targets during the “12th Five-Year Plan” period have now been determined.

Earlier, the Chinese government set a target of 20% reduction in energy consumption per unit of GDP during the “Eleventh Five-Year Plan” period. For this hard bar, at the end of 2010, Chinese governments at all levels to achieve energy-saving emission reduction targets, some units around the phenomenon of power cuts occur.

Sun Cuihua did not disclose the next five years of energy-saving emission reduction targets. However, she said that the National Development and Reform Commission will also put forward a clear indicator of carbon intensity reduction at all levels of government, thus restricting the responsibilities and obligations of all parties in carbon emissions. At present, this operation is being negotiated with various provinces and cities, and there is no final result.

Last year, relevant experts had suggested to the National Development and Reform Commission that the energy consumption per unit of GDP during the “12th Five-Year Plan” period could be reduced by about 18%, and carbon intensity emission indicators could also adopt this indicator. However, experts from various parties have been arguing about the formulation of this figure. It can be determined that the indicator of carbon intensity decline will not deviate too far from the energy consumption index.

The formulation of indicators also requires clear and complete emission data. On the eve of the two sessions last year, the National Development and Reform Commission once said that the Chinese government will organize the preparation of 2005 and 2008 greenhouse gas emission inventories to enhance the integrity and accuracy of China's greenhouse gas emissions inventory. Prior to this, China had already calculated and released the 1994 list of greenhouse gas emissions. Sun Cuihua said that the National Development and Reform Commission has organized experts to compile a list of provincial governments, clear accounting standards and models, and so on.

In addition, the Chinese government is also brewing a carbon tax. Sun Cuihua said that the National Development and Reform Commission is working with various departments such as the Ministry of Finance and the Ministry of Environmental Protection to discuss the timing and conditions for the introduction of a carbon tax. The current official statement stated that the country may already be studying the specific operating steps for the introduction of the carbon tax.

In an interview with the Times Weekly reporter, Tang Renhu, chief scientist of carbon investment and carbon market at CITIC Securities, said that in fact, the development of carbon trading and the introduction of carbon taxes are all carbon emission reduction measures. Although the introduction of carbon taxes is easier to operate than the development of carbon trading, The implementation effect is not as good as the market-based carbon trading mechanism. “China’s tax burden is already light, and adding more taxes will cause more controversy”.

On the other hand, the Chinese government selected 5 provinces and 8 cities, including Guangdong Province and Baoding City, to conduct pilot projects for low-carbon and low-carbon cities in 2010. This signal is seen from the outside world as being the first step in exploring carbon trading.

Tang Renhu said that the government is determined to do a carbon emission reduction transaction. The biggest problem is how to do it. The market needs the government to draw a road map and establish a set of rules.

China's first single voluntary emission reduction transaction

For China's carbon trading, it is worth noting that Sun Cuihua said that the current "government measures for the management of greenhouse gas voluntary emission reduction activities (temporary)" (referred to as the "voluntary emission reduction management method") have been completed in writing and entered the government. Solicitation of opinions and fulfillment of the approval formalities.

Last year, the National Development and Reform Commission on the voluntary emission reduction management measures has been to the market for many times, and Sun Cuihua also said that the National Development and Reform Commission hopes to introduce this approach as soon as possible to establish the most basic registration system, so that voluntary emission reduction projects can reduce emissions It is fair and transparent and enhances its appeal to buyers.

Since China currently does not assume the obligation of compulsory emission reduction, most of the current carbon trade in China is a Clean Development Mechanism (CDM) project. Voluntary emission reductions are based on the interpretation of Mei Dewen, general manager of the Beijing Environment Exchange. ". The transaction mechanism based on a completely voluntary basis has only completed one case in China so far, so a set of rules is urgently needed to improve the market.

Sun Cuihua also pointed out that at present, the world carbon trading market is mainly in EU countries, and China’s macro-environment does not yet have a full carbon trading market, because the total carbon emission control is a prerequisite, and China cannot do this now, so It is appropriate to develop voluntary emission reductions. “After the National Development and Reform Commission investigated and researched, the establishment of a national market is the most important tool and means.”

Tang Renhu also told the Times Weekly reporter that carbon trading is a highly virtual concept. After all, transactions are digitally presented. The most need for the establishment of a credit system, including the variety, rules, and supervision of transactions, requires the government to complete the transaction. . In the long run, China will definitely develop a carbon trading market. The first step is to develop voluntary emission reductions. “First try this way.”

Recently, experts who have seen voluntary emission reduction management methods revealed to the media that voluntary emission reductions that are traded in state-recognized trading institutions will have national credit, that is, related projects must be approved by the National Development and Reform Commission, including reductions. Displacement determination, transaction process, etc. will all be completed under the supervision of the government department.

On August 5, 2010, Beijing Environment Exchange completed the first single voluntary emission reduction transaction in China. Shanghai Tianping Automobile Insurance Co., Ltd. invested RMB 277,699. 6 and successfully purchased 8,226 tons of carbon reduction from Beijing's green travel activities during the Olympics. The platoon indicators are used to offset the carbon emissions generated by the company from the establishment of the company in 2004 to the end of 2008.

Medivh said in an interview with the Times Weekly reporter that China's development of carbon trading should be carried out in accordance with the principles of voluntary and post-compulsory. Therefore, the Beijing Environment Exchange is developing a set of voluntary emission reduction standards, the Panda Standard, in order to establish The International Dissipative Market's Right to Discourse in China.

The greatest uncertainty in the development of CDM

On the one hand, the domestic market is in an embryonic state. On the other hand, in the international market, Chinese projects have frequently encountered rejection. In the past two years, the probability of China’s CDM project being rejected by the UN’s Executive Committee on the Clean Development Mechanism has been increasing. Many wind power projects have been rejected due to alleged government subsidies.

According to data released by the National Development and Reform Commission, as of October 2010, China registered as many as 1,000 CDM projects in the United Nations, which accounted for 41% of the global total. The annual emission reduction was equivalent to 230 million tons equivalent, accounting for 61% of the global total. The successful signing of more than 300 projects has also become the biggest beneficiary of this trading mechanism, but the recent rejection of the project will seriously affect the development of China's carbon trading market.

In response to this, at the inauguration ceremony of the Beijing Green Finance Association, Sun Cuihua said on behalf of the authorities that the Chinese wind power and hydropower projects were rejected, which made the Chinese government worried that this new trend is unfair and unreasonable for Chinese projects. The government is negotiating with relevant parties of the United Nations and sending experts to explain with the UN Executive Board of the Clean Development Mechanism. At present, this issue is being solved."

The prescription of the “Kyoto Protocol” is about to end. For the future of the CDM mechanism after 2012, all parties have been arguing and the situation is not clear. Tang Renhu believes that the implementation of the CDM mechanism has achieved very good results in the past five years. The future carbon trading mechanism is sure to continue to develop, but may no longer present a model. Perhaps it is a combination of industry and regional mechanisms, but CDM's Technology and ideas will certainly be inherited.

From the perspective of the Chinese government, after 2012, the country's emission reduction obligations have not been determined to be the greatest uncertainty in the development of the CDM mechanism. However, this mechanism has proved to be successful and is conducive to the development of international carbon reduction projects. Therefore, Sun Cuihua said that “the circle believes that the specific rules of the future may be improved, but all parties still have confidence in the existence of this mechanism.”

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