Status of China Carbon Market. Qian Guoqiang November 18, 2013, Warsaw

Transcription

1 Status of China Carbon Market Qian Guoqiang November 18, 2013, Warsaw

2 Who we are? Our Objective: promoting low carbon development in China through various innovations Our Team More than 70 people Profound background in the areas of finance, energy and environment industries Membership and Qualifications Beijing High-Tech enterprise Authorized Technical Supporting Organization by Beijing DRC in the area of climate change Authorized Verification Organization of Carbon Emission Trading by Beijing DRC Authorized Technical Supporting Organization by Wuhan DRC in the area of climate change The executive director membership of the China Carbon Emission Reduction Association Member of Beijing Emission Trading and Green Finance Association Low carbon training hub of Beijing Dongcheng District Government Strategic Partner of low carbon industry development of Beijing Dongcheng District 2

3 Company Structure & Business Low-Carbon Education & Training Carbon Trading Services Low-Carbon Think Tank Educatio n & Training SinoCarbon SinoCarb on Green Corporate Carbon Consulting Forest Carbon Sink Services Low-Carbon Technology Transfer & Promotion Validation& Verification SinoEuro Carbon Fund Green Supply Chain Carbon Management IT System Corporate Structure Business Segments 3

4 Outline Major progress of China carbon market Comparison of seven pilot ETS Evaluation of market size of seven pilots Prospect of China carbon market 4

5 Background of China Carbon Market Low carbon transition trend CDM experiences Relevant domestic policies International Context China carbon market Relevant system gradually established 5

6 Binding Emission Targets in China 2020 target lower carbon dioxide emissions per unit of GDP by 40-45% by 2020 compare to 2005 level 12 th FYP target lower carbon dioxide emissions per unit of GDP by 17% by 2015 compare to 2010 level Burden Sharing Decompose national reduction target in 12 th fiveyear to provinces, based on the energy-saving targets of provinces 6

7 General Approach of the Construction of China Carbon Market Nationallevel (top-down) Local-level (bottom-up) Pilot ETS Project-based voluntary emission trading scheme (CCER trading) National registry Guidance of GHG accounting methodologies of key sectors Design of national carbon market(pmr of World Bank) Oct.2011: NDRC issued a NOTICE 7 pilot ETS 2 provinces: Guangdong and Hubei 5 cities: Beijing, Shanghai, Shenzhen, Tianjin and Chongqing Launch in

8 Main Progresses: National-level Pilot ETS 12 Contributing Countries 16 Implementing Countries PMR Registry system and MRV system, etc. Capability building in ETS regulations proposals for market readiness approved Capability building in technical perspective Marketbased emission reduction approach 8

9 Main Progresses: Local-level Basic Framework of the construction of pilot ETS Coverage Cap setting Allowance allocation MRV Compliance mechanism Supporting tools Registry system Reporting system Trading platform Relevant institutions Competent authority Regulatory body Financing institutions Price Containment Price Control Allowance Reserve Offset ting Laws and regulations 9

10 scope entities An Overview of 7 Pilots ETS Design Beijing Tianjing Shenzhen Guangdong Chongqing Hubei Shanghai heat supply, electricity, cement, petrochemic al, other industries sectors, service sectors. around 500 Iron and steel, chemical engineering, electricity and heat, petrochemi cal, oil and gas production more than industry sectors and public buildings(2 013); Transporta tion sector (before 2015) 635 industry enterprise s and 200 public buildings Electricity, cement, iron and steel, petrochemica l industry 239 Electricity, heat, chemical engineering, mineral, coal, ferrous metals, non-ferrous metals, papermakin g, etc. Around iron and steel, chemical engineering, cement, auto making, electricity, ferrous metal, glass, paper making, etc. Around Coverage ratio 50% 60% 40% 50% 40% 35% 49% Industrial sectors including iron and steel, petrochemical, chemical engineering, etc. Non-industrial sectors including airport, railway, hotels and finance, etc. 10

11 An Overview of 7 Pilots ETS Design Allowance allocation Offset limit Beijing Tianjing Shenzhen Guangdong Chongqing Hubei Shanghai To be To be TBD benchmark TBD TBD TBD announced announced 5% 10% 10% 10% 8% 10% 5% Trading products Allowances CCER Allowances CCER Allowances CCER Allowances CCER Allowances CCER Allowances CCER Allowance CCER Trading platform China Beijing Environment Exchange Tianjin Climate Exchange Shenzhen s China Emissions Exchange Guangzhou s China Emissions Exchange Chongqing Emission Trading Center Hubei Emission Trading Center Shanghai Environme nt and Energy Exchange 11

12 Initial Estimation of Market Volume (2013 to 2015) 100 milli on tons 3-year total allowances Average allowances 3-year total offsets Average offsets 12

13 Main Challenges Main Challenges Macro level Micro level Economic growth Lowcarbon transition Data base Impleme ntation Binding Capacity 13

14 Thank you! Qian Guoqiang SinoCarbon Innovation and Investment Co. Ltd. For More Information 14