At present, China's carbon market is based onFree distributionThe quota is the main quota, and a small part of the quota isPaid distribution, the main of which is:Auction allocation
According to the latest allocation policy, it is important to note that:
First, the quota approval method is not fixed and will change in some industries. For example, the quota allocation method of Shenzhen industry has undergone major changes in 2021, and the public transportation industry, port and terminal industry, hazardous waste treatment industry, and subway industry have been adjusted from the benchmark intensity method to the historical intensity method. In 2022, the quota approval method for other sub-sectors of power generation (pumped storage) and power ** (power grid) in Beijing was adjusted from the historical intensity method to the benchmark value method.
Second, carbon allowances are not fixed every year, and the total annual allowances will be adjusted every year according to factors such as climate change targets, economic growth trends, industry emission reduction potential, and historical quota supply and demand. In 2021, the total amount of allowances in the pilot carbon market was basically increased, such as Hubei from 1. in 20206.6 billion tons increased to 1. in 20218.2 billion tons, Shanghai by 10.5 billion tons increased to 1. in FY20210.9 billion tons; Guangdong by 2021 26.5 billion tons increased to 2 in 2022 year6.6 billion tons; Shenzhen increased by 3 million tons, while Tianjin remained unchanged.
Third, the paid allocation of carbon emission allowances is a trend, although some provinces and cities do not mention paid allocation in the carbon allowance allocation plan, but have begun to make relevant preparations and attempts. For example, on November 23, 2022, the Beijing Green Exchange organized and implemented a paid bidding for the issuance of carbon emission allowances in Beijing in 2021, and a total of 17 key emitting enterprises that passed the qualification review were successfully bid, with a total transaction volume of 960,000 tons. Transaction**: The unified transaction price is 11754 yuan ton, total turnover: 11.3 billion yuan. Hubei and Tianjin also have announcements of carbon allowance auctions.
The national ETS uses the industry baseline method to issue allowances free of charge, while the method based on historical enterprise data and the industry benchmark method are the two most widely used allocation methods in the pilot areas. From the perspective of the initial quota allocation calculation method, at the beginning of the pilot, the pilot carbon market uses the historical method for allocating quotas, that is, according to the emissions of enterprises in the past 2 or 3 years and the initial allocation of quotas, and some areas adopt the benchmark method for the allocation of quotas by enterprises in industries with better data conditions and single products, such as electricity, cement and other industries. At present, each carbon pilot has different calculation methods for different industries or production processes.
The following table shows the comparison of the allocation methods and methods of China's carbon market
In view of the above situation, we can see that there are still some problems in the allocation of allowances in China's carbon market. First of all, there are different calculation methods for the allocation of allowances in the carbon market in the pilot areas, and there is a lack of unified standards and norms, which not only increases the difficulty and cost of enterprise transactions, but also affects the stability and fairness of the market. Second, the paid allocation of carbon emission rights has not been fully promoted, and only some regions have tried to do so, which is not conducive to the role of market mechanisms in carbon emission reduction.
In order to solve these problems, we can take the following measures. First of all, it is necessary to strengthen the unified management and regulation of the allocation of allowances in the carbon market, and formulate a unified national calculation method for allowance allocation to ensure the fairness and transparency of the market. Secondly, we should gradually promote the paid allocation of carbon emission rights, give full play to the role of market mechanisms in carbon emission reduction, and improve the awareness and enthusiasm of enterprises to reduce emissions. At the same time, data management and monitoring should be strengthened to ensure the accuracy and scientificity of quota allocation.
In addition, we can also promote the healthy development of China's carbon market through the following aspects. First of all, policy publicity and training should be strengthened to improve the awareness and understanding of the carbon market among enterprises and the public, and enhance the awareness and responsibility of enterprises to reduce emissions. Second, we should strengthen the coordination and cooperation between the carbon market and other environmental policies, such as environmental protection tax and emission rights trading, so as to form a policy synergy and jointly promote China's environmental protection. Finally, international cooperation and exchanges should be strengthened, and the experience and lessons of the international carbon market construction should be learned, and China's carbon market system and management mechanism should be continuously improved.
In short, the development of China's carbon market is a long-term process, which requires the joint efforts of enterprises, enterprises and the public. Only by continuously strengthening the work of policy formulation and implementation, market construction and supervision, and the participation and cooperation of enterprises and the public can we promote the healthy development of China's carbon market, achieve the goal of carbon emission reduction, and make greater contributions to China's environmental protection.
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Carbon allowances