Carbon finance welcomes the policy outlet

　　Recently, the Interim Regulations on the Administration of Carbon Emission Trading (hereinafter referred to as the "Regulations") were signed and officially promulgated by the State Council and will be implemented on May 1. For the first time, the Regulations clarify the carbon emission market trading system in the form of administrative regulations, which is the legal basis for guiding the operation and management of China's carbon market, and is of milestone significance for the development of the carbon market. It is not only conducive to solving the problems of unclear attributes of domestic carbon emission rights assets, imperfect legislation and top-level design, and unclear supporting supervision and reward and punishment mechanisms, but also greatly promotes the development of carbon finance in China.

　　First of all, the formation of the carbon emission trading market provides market demand for carbon financial products and services. Enterprises and institutions need to purchase carbon emission credits or implement emission reduction measures to meet the emission cap requirements, which has formed a demand for carbon financial products and services, and promoted the development of the carbon finance market.

　　Second, the development of the carbon emission trading market has promoted the innovation of carbon financial products. For example, the emergence of financial derivatives such as carbon futures, carbon options, and carbon funds has provided investors with more choices, and at the same time, it has also provided more risk management tools for enterprises and institutions, promoting the diversification and innovative development of carbon financial products.

　　Third, the volatility and uncertainty of the ETS market provide a risk management need for companies and financial institutions. Enterprises need to manage carbon emission risks through carbon financial products and services, and financial institutions can meet this demand by providing related products and services, which promotes the development of carbon finance market.

　　Finally, the ETS offers new investment opportunities for investors. Investors can obtain benefits by investing in carbon emission rights or participating in carbon financial products and services, and at the same time, they can also support and promote the emission reduction behavior of enterprises and institutions, which promotes the expansion and expansion of the carbon finance market.

　　The petrochemical industry is a traditional industry with high energy consumption and high carbon emissions, and is one of the main sources of greenhouse gases in the industrial field, with high carbon emissions per unit of GDP. According to the statistics of the China Petroleum and Chemical Industry Federation, the CO₂ emissions of the petrochemical industry in 2020 will be 1.384 billion tons, accounting for about 21% of China's total industrial emissions and 14% of the total carbon emissions. According to CICC's estimates, during the 2030-2060 carbon neutrality period, the petrochemical industry will be one of the industries with the largest demand for capital among China's high-carbon industries, reaching 3.9 trillion yuan. Therefore, the author has the following suggestions on how the petrochemical industry can obtain financial support with the help of carbon emission trading and carbon finance market, promote the green and low-carbon transformation and upgrading of enterprises, and achieve high-quality development of the industry:

　　First, it is necessary to establish a carbon emission data collection and reporting mechanism. The petrochemical industry should establish a sound carbon emission data collection and reporting mechanism to ensure accurate and reliable access to enterprise carbon emission data. This will provide basic data support for enterprises to participate in carbon emission trading and carbon finance markets.

　　Second, we must strengthen carbon emission management and technological innovation for emission reduction. The petrochemical industry should strengthen carbon emission management, promote the innovation and application of emission reduction technologies, and reduce carbon emissions and increase the value of carbon emission rights by adopting cleaner and more efficient production processes and equipment.

　　Third, we must actively participate in the carbon emission trading market. Petrochemical companies can manage carbon emission risks by purchasing and selling carbon emission rights, achieving a win-win situation of carbon emission reduction and economic benefits.

　　Fourth, we should pay attention to the innovation of carbon financial products and services as soon as possible. Petrochemical companies can focus on the innovation of carbon financial products and services, such as carbon futures and carbon options, and use these financial tools to manage and invest in carbon emission risks.