February 9, 2024 Sustainability Daily

Mondo Finance Updated on 2024-02-09

Industry news

1.policyOn February 8, the National Energy Administration issued the "Notice on Establishing and Improving the Market Mechanism of Power Auxiliary Services", which pointed out that the transaction and mechanism of frequency modulation auxiliary services should be improved. Standardize the trading mechanism of the FM market. In principle, the FM market adopts a unitary system based on FM mileage. Each unit shall independently declare the frequency modulation capacity and the first time in the time period according to the rules, and determine the clearing and winning frequency modulation capacity through market competition. The FM fee is calculated based on the product of clearance**, FM mileage, and performance factor. Reasonably determine the upper limit of FM service**. Quoted from:: Important notice from the National Energy Administration! )

2.policyOn February 8, the "Opinions on Promoting the Construction of a Model Green Development City in Xiong'an New Area" issued by the people of Hebei Province pointed out that by 2035, a high-level socialist modern city with green and low-carbon, information intelligence, livability and business, strong competitiveness and influence, and harmonious coexistence between man and nature will be basically built. The urban green coverage rate has reached 50%, the water quality compliance rate of important water function areas has reached 95%, the proportion of blue-green space has been stable at 70%, and the quality of the atmospheric environment has been fundamentally improved. The pattern of green and low-carbon modern industry has been initially established, and the indicators of energy efficiency and carbon emissions have reached the leading level in China, and the water efficiency indicators have reached the international leading level. It has effectively undertaken Beijing's non-capital functions and become a new highland for green development and a new benchmark for urban construction. Quoted from:: It is related to Xiong'an New Area, and the people of Hebei Province are released by the country! )

3.MessageOn February 8, the Shanghai and Shenzhen North Stock Exchanges solicited opinions on the guidelines for the disclosure of sustainable development reports of listed companies, further promoting the improvement of the quality of listed companies, guiding listed companies to practice the concept of sustainable development, standardizing the disclosure of sustainable development-related information, and helping to build a standardized and unified sustainable development rule system for listed companies with Chinese characteristics, international influence, and standardization. In terms of disclosure entities, the Shanghai Stock Exchange requires companies to be included in the SSE 180 and STAR 50 indices during the reporting period, the Shenzhen Stock Exchange requires companies to be included in the SZSE 100 and ChiNext indices during the reporting period, and the Shanghai and Shenzhen Stock Exchanges both require companies listed at home and abroad to disclose their sustainability reportsQuoted from:: A shares are heavy! The guidelines for the sustainable development of listed companies are here! The three major exchanges: these listed companies must be forced to publish ESG reports! )

Today's view

CCER's Opportunities and Trends

The market size is expected to continue to expand. The main factors influencing the size of CCER transactions include the amount of CCER issued, the total amount of carbon allowances (CEAs) and the proportion of CCER offsets. At present, the national carbon market only includes the power sector, covering about 4.5 billion tons of carbon dioxide emissions, which is estimated at a cap of 5% of the available offset, corresponding to a CCER demand cap of about 2.2 per year2.5 billion tons, calculated according to the CCER unit price of 65 yuan tons, the economic value is nearly 15 billion yuan. Looking ahead, three major factors will drive the increase in CCER transaction volume.

First, the coverage of industry coverage may be expanded, and the coverage of carbon allowance trading in the national carbon market may be expanded from the power generation industry to steel, nonferrous metals, petrochemicals, chemicals, building materials, papermaking and other industries.

The second is the expansion of trading varieties, and the CCER market may bring innovation in trading products, increase the income of projects such as distributed wind and solar, green photovoltaic buildings, and forest and grass carbon sinks, and create new low-carbon development opportunities.

The third is the improvement of trading, the integration of the global carbon market, and the superposition of domestic low-carbon transformation needs, and the improvement of carbon trading.

The market is expected to develop in depth. With the gradual maturity of the carbon market, especially under the catalysis of CCER trading demand, financial institutions are expected to participate more widely in CCER's matchmaking, trading, mortgage financing, etc., to help the market further expand its scale, increase activity, and improve its functions such as discovery and risk control.

The global linkage of the carbon market is expected to increase. From a global perspective, there is currently one cross-national carbon market (the European Union national carbon market and 24 regional carbon markets, with a market size of 272 billion US dollars, covering 16% of the world's carbon emissions, but China's carbon market is less in line with the international market. Compared with the allowance carbon market, CCER trading itself has a higher potential for internationalization. CCER trading can be used as a pioneer in the construction of common mechanisms and the co-construction of trading channels by virtue of its unique advantages of high marketization and strong flexibility.

Expand the business form of green finance. The resumption of CCER may become a new "growth pole" for the development of green finance.

The first is to expand channels for financial product innovation

The second is to increase the demand for funds for ecological projects

The third is to revitalize the ecological assets of enterprises

Citation: Carbon Neutrality|CCER's Opportunities and Trends

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