According to Xinhua News Agency, Premier Li Qiang recently signed an order to announce the "Interim Regulations on the Administration of Carbon Emission Trading", which will be officially implemented from May 1, 2024. The promulgation of this regulation marks the further improvement of China's carbon emission trading market and provides a strong guarantee for the sustainable development of related industries.
According to the regulation, the carbon emission trading market will cover more products and trading entities. In addition to the original carbon emission allowances, other approved spot trading products will also be included in the trading scope. At the same time, key emitting entities and other entities that meet the requirements will be eligible to participate in the transaction. This will help to expand the coverage of the market and increase the activity and trading volume of the market.
For the electrolytic aluminum industry, the implementation of this regulation will bring new opportunities and challenges. According to our calculations, the current carbon dioxide emissions per ton of thermal power aluminum are 1684 tons. As of February 2, the domestic carbon trading ** was 7453 yuan ton. This means that if the free quota is 0, a low-carbon premium of about 1,000 yuan per ton of thermal power aluminum will be formed. This will prompt companies to increase investment in the research and development and application of low-carbon technologies to reduce carbon emissions in the production process.
In this context, the hydropower aluminum and recycled aluminum industries will usher in new development opportunities. As a clean energy source, hydropower produces relatively low carbon emissions during its production. Recycled aluminium is reused through scrap aluminum, which not only saves resources, but also reduces carbon emissions in the production process. As a result, it will be easier for companies in these industries to obtain carbon emission allowances, reduce production costs, and improve market competitiveness.
However, we also need to be aware of the risks that may exist in the implementation of this regulation. Policy changes may have an impact on the carbon emissions trading market, such as changes in allowance allocation, trading rules, etc. In addition, factors such as supply and demand in the market, technological progress, etc., may also bring uncertainty to the low-carbon development of enterprises. Therefore, relevant enterprises need to pay close attention to policy dynamics and market changes, strengthen their own management and technological innovation, and adapt to the new development environment.
In short, the implementation of domestic carbon trading regulations will bring new development opportunities and challenges to the electrolytic aluminum industry. Enterprises need to actively respond to market changes and strengthen the research and development and application of low-carbon technologies to achieve sustainable development. At the same time, investors also need to pay attention to the potential of the hydropower aluminum and secondary aluminum industries to grasp market opportunities.
Note: The data and opinions in this article are provided by the team of Zheshang Metal New Materials and are for reference only and do not constitute investment advice.
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