ESG Week | The National Energy Administration launched a pilot renewable energy, and the national carbon trading market price reached a record high

ESG policy

1. The National Energy Administration issued the Notice on Organizing and Carrying out Pilot Demonstration of Renewable Energy Development

On October 18, the National Energy Administration issued the Notice on Organizing and Carrying out Pilot Demonstrations of Renewable Energy Development, pointing out that by 2025, it will organize and implement a number of demonstration projects with advanced technology, reasonable economic benefits and good prospects for promotion and application, promote the formation of a series of relatively mature and perfect support policies, technical standards, business models, etc., and effectively promote the development of new technologies, new models and new formats of renewable energy.

Comments:Carrying out pilot demonstrations of renewable energy development will further promote the development of China's renewable energy industry, promote the transformation and upgrading of energy structure, and inject new impetus into the sustainable development of China's economy. At the same time, it will also have a positive impact on the development of renewable energy around the world, and promote the global low-carbon and sustainable energy transition.

2. The State Administration for Market Regulation issued a document to promote the carbon peak and carbon neutrality of quality certification services

The State Administration for Market Regulation recently issued the Implementation Opinions on the Coordinated Use of Quality Certification Services to Reach Carbon Peak and Carbon Neutrality (hereinafter referred to as the Implementation Opinions), aiming to further promote the construction of carbon peak and carbon neutrality certification system, optimize system supply, standardize the implementation of certification, and comprehensively serve the realization of carbon peaking and carbon neutrality.

Comments:The implementation opinions will help promote the construction of carbon peak and carbon neutrality certification system system, standardize the implementation of certification, and improve the effectiveness and credibility of certification. By optimizing the system supply, it will better meet the market demand, provide enterprises with more convenient, efficient and reliable certification services, and help enterprises achieve sustainable development goals. In addition, it will further promote the attention and participation of the whole society in the work of carbon peaking and carbon neutrality, and promote the formation of a good atmosphere for the whole society to jointly promote green and low-carbon development.

ESG release

1. On October 17, the International Energy Agency (IEA) released the report "Power Grid and Secure Energy Transition"

The International Energy Agency (IEA) said in its Electricity Grids and Secure Energy Transitions report that if countries are to meet their climate goals and maintain energy security, investment in the global grid must double to more than $600 billion a year. At the same time, the report said China's transmission grid is growing rapidly, accounting for more than one-third of the global transmission grid expansion in the past 10 years. But if China is excluded, the rate of expansion of transmission grids in emerging economies has declined by an average of 7% per year over the past five years.

Comments:The report provides important information on global grid investment and transmission grid development, and has certain reference value for understanding global energy development trends and formulating energy policies. The development of China's transmission grid mentioned in the report reflects China's status and influence in the energy field, and is of great significance for understanding China's energy development and international cooperation.

2. The 2023 Green Supply Chain CITI Index and Climate Action CATI Index were released

On October 19, the Center for Public and Environmental Studies (IPE) released the 10th annual report of the Green Supply Chain CITI Index and the 6th Annual Report of the Supply Chain Climate Action CATI Index. It is understood that the evaluation covers 742 domestic and foreign enterprises in 22 industries. In Greater China, Foxconn, Luxshare Precision, Anta, LONGi Green Energy, Huawei, Lenovo, etc. are in a leading position. IPE pointed out that the current green supply chain construction is still in its infancy. In response to the triple crisis of climate change, biodiversity loss and environmental pollution facing the world, the construction of global green supply chain needs to be strengthened.

Comments:Building a green supply chain can not only improve the competitiveness of enterprises, but also drive the greening of the entire supply chain and promote the sustainable development of the economy. Therefore, the construction of green supply chain requires not only the participation of enterprises, but also the joint efforts of governments, industry associations and the public to promote the development of global supply chains in a more sustainable direction.

ESG actions

1. The price of the national carbon trading market exceeded 80 yuan / ton

According to data from the Shanghai Environmental Exchange, the national carbon trading price has remained above 80 yuan since it exceeded 80 yuan / ton on October 12, and hit a new high of 82.79 yuan / ton on October 20. The national carbon market has a two-year compliance cycle, and is currently at the end of the second compliance cycle (January 1, 2022 to December 31, 2023).

Comments:Some market views believe that approaching the end of the compliance period is the main reason for this round of carbon price increases. But in fact, carbon prices have been hitting new highs since July this year, which directly reflects the market's demand for carbon emission allowances and the gradual increase in carbon value, as well as the market's expectations and confidence in future carbon emissions trading.

2. The Canton Fair achieved 100% green electricity consumption for the first time

On October 15, the China Import and Export Fair (Canton Fair) opened. In addition to the exhibition area and the number of exhibitors, the Canton Fair also achieved 100% green electricity consumption coverage for the first time in terms of venue energy consumption, and zero carbon emissions of electricity consumption. It is expected that the electricity consumption of all venues during the conference will be 12 million kWh, and 100% green electricity will be used through green certificate trading in the Guangzhou Electric Power Trading Center.

Comments:As one of China's important trade activities, the Canton Fair plays an important role in promoting Sino-foreign trade and promoting economic development. During this event, 100% green electricity coverage and zero carbon emissions of electricity consumption will be achieved, demonstrating China's determination and strength in promoting sustainable development, and will also promote the development and application of green energy.

ESG International

1. The UK announced that Europe's largest energy storage battery is connected to the grid

On October 17, Harmony Energy Ltd, a UK utility-scale battery energy storage company, announced that it has connected Europe's largest energy storage battery to the grid, increasing the UK's capacity to store green electricity for future use. The project, called Bumpers, is located in Buckinghamshire, England, and uses Tesla's Megapack 2XL battery, which has an installed capacity of up to 99 megawatts, enough to store enough energy to power 450,000 homes for two hours. This means that whether it's sudden weather changes or a surge in electricity demand, the Bumpers project can provide the UK with reliable electricity reserves.

Comments:The successful implementation of this project will promote the development of sustainable energy and the advancement of energy storage technology in the UK, provide reliable reserves and guarantees for future energy demand, and even affect the direction of energy structure transformation throughout Europe.

2. The United States invested $3.5 billion to strengthen the power grid and deploy clean energy

The Biden administration announced on October 18 $3.5 billion for projects to protect and improve aging U.S. power grids from extreme weather and fire, as well as projects to connect transmission systems with more power from renewable sources. U.S. Energy Secretary Jennifer Granholm said this was the largest direct investment in the U.S. ever made in the grid.

Comments:This is the largest grid direct investment in U.S. history, meaning the program will promote renewable energy, modernize transmission systems, and accelerate the transition to more sustainable energy. At the same time, the allocation of funds to 44 U.S. states will help boost local economic development and employment.

ESG investing

Bank of China was listed in the world's first batch of green bonds to jointly build the "Belt and Road"

On October 16, Bank of China officially listed the "Belt and Road" green bond issued by the Nasdaq Dubai Exchange. It is reported that the green bond, with a total scale of about 770 million US dollars, will be used to jointly build qualified green projects in "Belt and Road" countries, covering countries such as the United Arab Emirates, Saudi Arabia, Portugal, Austria, Bulgaria and Poland. The green bonds were issued simultaneously by two overseas branches of Bank of China in Dubai and Luxembourg, each with a maturity of 3 years. Among them, Bank of China Luxembourg Branch issued 2 billion yuan of offshore RMB varieties; Bank of China Dubai Branch issued US$500 million SOFR floating rate products, and Bank of China Dubai Branch was the first Chinese issuer to raise all funds for green projects in the Middle East.

Comments:The issuance of this green bond will promote the development of green projects and economic transformation and upgrading in countries along the Belt and Road, and strengthen economic ties and cooperation between China and countries in the Middle East. At the same time, it also provides new financing channels and internationalization platforms for Chinese-funded enterprises to go global, which is conducive to promoting the sustainable development of China's economy.

Cover image source: Visual China-VCG111347969476