Feature: Emission control enterprises under the second compliance period of the national carbon market

Despite more than two years of real trading experience in the national carbon market, East Asia Power (Xiamen) Co., Ltd. (hereinafter referred to as East Asia Power (Xiamen)) actively participated in the first national carbon market simulation trading competition.

"The Demo Trading Competition truly restores the market trading scenario, which helps our company better improve its carbon trading knowledge and ability and temper the trading team, which is a rare simulation and practical opportunity." The relevant person in charge of East Asia Electric Power (Xiamen) said in an interview with a reporter from the Securities Times.

Since the start of the competition, the relevant personnel of East Asia Power (Xiamen) have been watching the market all day during the trading session, actively participating in trading, trading every trading day, participating in the one-way auction of simulated quotas every week, and winning the first place in the second, third and fourth week trading volume rankings of the competition.

Among them, East Asia Power (Xiamen), as a simulated quota gap control and emission control enterprise, fulfilled the 200,000 tons of quota of the gap, and the transaction was completed in the one-way bidding of the simulated quota in the first week.

"The paid allocation of quota auctions can increase the transparency of the distribution process, help increase market activity and release price signals, so that emission control enterprises can purchase quotas with one more option path, and provide guarantee for enterprise performance." At the same time, the paid allocation of quotas can reflect the cost of emission reduction for enterprises, help enterprises feel the asset value of carbon emission rights more intuitively, and encourage enterprises to carry out research and development and application of emission reduction technologies. The person in charge said, "This form can better play the role of the carbon market in effectively allocating resources and promoting greenhouse gas emission reduction, and has actively explored the development of the national carbon market." ”

East Asia Power (Xiamen) is already a "veteran" in the national carbon market. The company is one of the first power enterprises in Fujian Province to be included in the national carbon trading, actively participated in and supported the national carbon market trading activities during the first compliance period of the national carbon market, successfully completed the implementation of the national carbon market in 2019-2020 in 2021, and independently purchased hundreds of thousands of tons of carbon emission allowances through the block agreement trading model.

In 2015, the Xiamen East gas-fired power plant project developed by East Asia Power (Xiamen) received a national certified voluntary emission reduction of 2.424 million tons equivalent of carbon dioxide issued by the National Development and Reform Commission, setting and maintaining the national record for the largest emission reduction issued by gas-fired power generation. In the first compliance period, East Asia Power (Xiamen) actively participated in CCER trading and offsetting, and has sold all emission reductions to emission control enterprises and institutions for corporate compliance and carbon neutrality activities.

The national carbon market is an important tool for the state to adopt market mechanisms to control and reduce greenhouse gas emissions. Since participating in it for more than two years, East Asia Power (Xiamen) has deeply felt the country's determination and strength to achieve the "dual carbon" goal while facing the adjustment of distribution plans, the impact of the epidemic, and the pressure of energy supply.

"In the allocation and clearance of quotas in the national carbon market in 2021 and 2022, we have felt the contraction of the total amount of market quotas, and the remaining quotas after compliance have decreased significantly compared with the previous round. Recently, as the compliance period approaches, the demand for purchasing quotas to complete the settlement and compliance has been further released, the national carbon market has become increasingly active, and the price of carbon emission allowances has also increased compared with the first compliance cycle. The person in charge of East Asia Electric Power (Xiamen) told reporters, "For emission control enterprises, the price fluctuation of 1 yuan represents tens or even millions of costs or benefits, which largely promotes the enthusiasm of our enterprises and the industry for energy conservation and emission reduction." ”

RGE Group, a group company of East Asia Power (Xiamen), has made a commitment to reduce carbon emissions by 30% by 2030 in China, and in April 2021, established a carbon management committee chaired by the President of China to comprehensively guide and supervise the carbon management of RGE China.

According to reports, Golden Eagle Group intends to continuously carry out technological upgrading and transformation by improving energy efficiency, adjusting energy structure, supporting financial emission reduction, carrying out voluntary emission reduction and practicing the five major paths of ecological carbon sequestration, and trying to use natural gas, photovoltaic and biomass energy to replace coal burning, etc., energy conservation and carbon reduction have achieved initial results, and the carbon emission intensity of unit products in the group continues to decline. At the same time, RGE Group has also continuously explored innovative carbon finance products, cooperated with financial institutions, and continuously created carbon custody, carbon mortgage, carbon trust and other businesses, giving full play to the correlation and enabling role of carbon trading in the relationship between financial capital and the real economy.

At present, East Asia Power (Xiamen) is actively preparing for the 2021 and 2022 carbon emission quota clearance of the national carbon market. The above-mentioned person in charge revealed to reporters that the company has made relevant preparations and will perform the contract in a timely manner in combination with the work arrangements and requirements of the local competent authorities.

What aspects should the national carbon market be further improved? The person in charge of East Asia Power (Xiamen) said that at present, China's carbon market trading products are mainly carbon quota spot and certified voluntary emission reduction (CCER), and the trading varieties and trading methods are relatively limited, and it is recommended to study the feasibility of launching financial instruments such as carbon futures and carbon options in a timely manner, improve and enrich the carbon market trading variety system, and further activate market transactions.