Implement the big article of green finance and make efforts by securities companies to develop the carbon trading market

Recently, the national greenhouse gas voluntary emission reduction trading market was launched in Beijing, and CICC, Guotai Junan, CITIC Securities, Huatai Securities and other securities firms participated in the first day of trading. Among them, CITIC Securities listed to buy 5,000 tons of national certified voluntary emission reductions (CCER).

At the end of last year, the Central Financial Work Conference proposed to do a good job in "green finance" and other five major articles, and the carbon emission trading system is one of the important practical measures to practice the concept of green development. With the improvement of China's carbon emission trading management framework, securities companies will also usher in more development opportunities.

The top brokerage participates in the transaction

According to statistics, the total trading volume of the national greenhouse gas voluntary emission reduction trading market on the first day was 375,300 tons, with a total turnover of 23,835,300 yuan. Sinopec, CNOOC, State Power Investment, CICC, Guotai Junan, CITIC Securities, Huatai Securities and other companies participated in the first day of trading.

It is reported that the national greenhouse gas voluntary emission reduction trading market can provide support for the energy conservation and carbon reduction actions of various market players in various industries through CCER trading. Owners of voluntary emission reduction projects can obtain economic returns through the sale of CCER, and participate more actively and consciously in the development and application of low-carbon technologies, high-emitting enterprises can use CCER to fulfill carbon emission reduction obligations, and enterprises and institutions can purchase CCER to offset carbon emissions, achieve carbon neutrality in products and major activities, and fulfill low-carbon commitments and social responsibilities.

CITIC Securities said that at the above-mentioned launching ceremony, as the first batch of trading institutions allowed to participate in the market, CITIC Securities listed to buy 5,000 tons of CCER, closely participating in and promoting the development process of China's carbon market. CITIC Securities will voluntarily cancel the emission reductions to offset the carbon emissions generated by the company's operations, take the initiative to fulfill its social responsibilities, further reduce the impact of its own operations on the environment, and actively respond to the national "carbon neutrality" goal.

Brokerages take the initiative to give full play to the advantages of intermediaries

In addition to directly participating in carbon trading, securities companies also actively give full play to the advantages of intermediaries, based on their own trading capabilities and risk control systems, diversify and enrich the carbon market from the dimensions of market liquidity, price discovery, information mining, carbon financial instruments, etc., improve the effectiveness and continuity of market transactions, promote the discovery of reasonable carbon prices, promote the carbon market to give full play to the important role of incentives for energy conservation and carbon reduction, and promote green and low-carbon development by market-oriented means.

CITIC Securities is the first financial institution in China to carry out carbon trading business. Since its establishment, the company has provided comprehensive carbon trading and carbon finance services for emission control and emission reduction enterprises nationwide, helping them reduce performance costs, obtain carbon reduction funds, and realize carbon emission reduction benefits.

In January this year, Shenwan Hongyuan signed a cooperation agreement with external partners Deloitte Consulting and Wu'an Yiyuan Animal Husbandry to jointly study and promote the registration and issuance of emission reductions for the project. This is the first CCER mechanism project signed by Shenwan Hongyuan after obtaining the qualification to participate in carbon emission trading issued by the China Securities Regulatory Commission, marking another solid step for Shenwan Hongyuan in practicing the national "dual carbon" strategy, serving the real economy and promoting rural revitalization.

At the end of December 2023, Huabao Securities and Chongqing Reignwood Group Glass Co., Ltd., a local enterprise in Chongqing that is included in the carbon emission compliance contract, successfully carried out the carbon repurchase trading business. This is the first carbon buyback trading business in Chongqing, and it is also an active exploration of key emission control enterprises and financial institutions in Chongqing's carbon market on a new model and path of carbon finance. The carbon buyback trading business has the advantages of helping enterprises broaden low-carbon financing channels, effectively reduce capital costs, and improve the flexibility of capital use.

CICC told reporters that it is of great strategic significance for financial institutions to participate in the carbon trading market. First of all, under the "dual carbon" strategy, carbon emission trading is an important part of financial institutions to serve the real economy, and by giving full play to their trading capabilities and professional product creation capabilities, they can provide more low-carbon transformation solutions for the real economy and effectively improve the depth and breadth of financial services for the real economy. Second, emission control companies need financial services to help them effectively manage carbon assets, account for carbon emissions, and design more economical compliance plans while carrying out normal production and operation. At present, the domestic carbon trading market is mainly participated by emission control enterprises, and it is also a spot market, and the degree of financial service docking is relatively low. Finally, participating in carbon emission trading will help enrich the green investment varieties of financial institutions, build full-chain trading capabilities, improve green comprehensive service capabilities, and better embrace the historical opportunities of dual-carbon development and the new track of green development.

There are also brokerages who are actively applying for qualifications

On January 15, Guosen Securities announced that the company's board of directors deliberated and passed the proposal on applying for carbon emission trading business, and agreed that the company should apply for increasing the types of carbon emission trading business, and carry out relevant business in accordance with relevant laws, regulations and business rules.

At the beginning of February 2023, CICC, Huatai Securities, Shenwan Hongyuan, Orient Securities, and China Securities Construction Investment announced that they had received a no-objection letter from the China Securities Regulatory Commission on the company's self-operated participation in carbon emission trading, and stated that "the company will carry out business in compliance and prudence in accordance with the relevant regulations and the requirements of the above-mentioned no-objection letter, with the goal of serving the real economy, reducing the cost of emission reduction for the whole society, and promoting the transformation and upgrading of the economy to green and low-carbon, and incorporate relevant businesses into the comprehensive risk management system."

In the 2023 semi-annual report, China Securities Construction Investment said that the company continued to deploy carbon finance business, implemented various infrastructure work for domestic carbon market trading, and completed the company's first carbon allowance trading at the Shanghai Environment and Energy Exchange, which is a key step in the company's path to expand the breadth and depth of carbon financial products and services, and is also an important milestone for the company to support the establishment and improvement of the domestic carbon emission trading system.