A key step has been taken in the construction of China's carbon market

　　On January 5, the executive meeting of the State Council deliberated and passed the Interim Regulations on the Administration of Carbon Emission Trading (Draft) (hereinafter referred to as the "Interim Regulations"), which means that China will establish an carbon emission trading system from the top-level design, marking an important step in China's response to climate change and promoting carbon emission reduction. This decision is an important measure taken by the Chinese government to strengthen environmental protection and promote sustainable economic development, and it is also a manifestation of China's active actions in global climate governance.

　　Against the backdrop of increasingly severe global climate change, the Chinese government has put forward a series of aggressive carbon emission reduction targets and adopted a series of powerful policy measures. The adoption of the Interim Regulations further demonstrates the Chinese government's commitment to climate governance, and demonstrates China's responsible attitude and positive actions in global climate governance.

　　However, the establishment and operation of the carbon market still faces many challenges, how to ensure the fairness, justice and transparency of carbon emission trading, and how to balance the relationship between carbon emission reduction and economic growth are all issues that need to be seriously considered and solved. For example, at present, China's carbon market mainly covers the power industry, and other high-emission industries such as steel, cement, petrochemical and chemical industries have not yet been included. At the same time, it is also necessary to further strengthen the supervision and guidance of enterprises, improve data quality management, and ensure the healthy development of the carbon market.

　　It is foreseeable that while the Interim Regulations will inject vitality into China's carbon market construction and carbon emission reduction work, it will also have a far-reaching impact on the petroleum and chemical industry, which will need to adapt to the new carbon emission trading system.

　　First, the Interim Regulations will push the petroleum and chemical industry to step up carbon emission reduction. As an industry with high energy consumption and high carbon emissions, the petroleum and chemical industry will face stricter carbon emission restrictions and emission reduction pressures, which will prompt enterprises to increase energy conservation and emission reduction technological transformation, promote the transformation of the industry to low-carbon and green development, and improve resource utilization efficiency.

　　Second, the ETS will bring a new business model to the petroleum and chemical industry. Enterprises need to purchase carbon emission rights to make up for excess emissions, which will undoubtedly increase the production cost of enterprises, so enterprises will pay more attention to energy conservation and emission reduction, increase investment in technological innovation, product structure adjustment, etc., and improve the core competitiveness of enterprises.

　　Thirdly, the carbon emission trading market will bring new business opportunities to the petroleum and chemical industry. With the gradual maturity of the carbon market, carbon emission trading will become a new financial derivative, and enterprises can avoid risks and obtain benefits by participating in carbon market transactions, which will bring more investment and financing channels to the industry.

　　Finally, the petroleum and chemical industry needs to strengthen cooperation with the government, industry associations and scientific research institutions to jointly promote the implementation of the carbon emission trading system. Only through the joint efforts of the government, enterprises and society can we achieve the goal of carbon emission reduction and promote the green and low-carbon development of the petroleum and chemical industry.

　　In summary, the new Interim Regulations will have a profound impact on the petroleum and chemical industry, which needs to actively respond to the need to increase energy conservation and emission reduction efforts to seize the new opportunities brought by the carbon market.