The electric power industry urgently needs to introduce carbon trading

From a worldwide perspective, the power industry is an important area of ​​carbon emissions and carbon emissions reduction, and it is also one of the main players in the carbon trading market. The EU carbon trading system, the Greenhouse Gas Emissions Trading Mechanism (EU-ETS), the US Regional Greenhouse Gas Emissions Reduction Initiative (RGGI) and the California State Carbon Trading System, New Zealand and Australia, and Other carbon markets are all important parts of the power industry. At present, the construction of the domestic carbon market is steadily advancing. How can the power industry develop carbon trading? How can grid companies participate in the carbon market? Both are questions that deserve deep thought.

Ren Haoning, a researcher in the energy industry at China Investment Advisors, believes that the power industry is one of the major industries for carbon emissions in China. Due to the fact that China is mainly based on thermal power for a long time, a large number of oxides and carbon oxides are emitted. This has caused tremendous pressure on energy conservation and environmental protection work. It is necessary for the power industry to carry out carbon emissions trading. Many key issues need to be solved as soon as possible.

First, how to determine carbon emissions and define carbon emission trading rights are the key issues. China's power companies lack the ability to independently measure carbon emissions, and most companies only stay in the primary stage of their understanding of carbon emissions. They simply use the equipment provided by the country to “follow and check,” and they do not pay enough attention to overall environmental quality. At the same time, most power companies do not have much knowledge of the carbon emissions trading rights, which has led to the inability of companies to complete carbon emissions trading in a timely manner.

Second, improving the carbon emissions trading market is the core issue. On September 11, with the official launch of the Guangdong carbon emissions trading pilot, China's first carbon emission quota transaction was completed at the Guangzhou Emissions Exchange, which indicates that Guangdong's introduction of market mechanisms has forced energy conservation and carbon reduction to achieve new breakthroughs. However, relevant market systems, regulations, and documents were not issued in a timely manner. The nationwide carbon emissions trading market has not yet formed, which has greatly limited the scale of power companies participating in carbon emissions trading.

Third, carbon emissions must be combined with economic benefits. The awareness of carbon emission in domestic power companies is relatively weak. The importance of the energy conservation and environmental protection work in the power industry is unclear. The main reason is that carbon emissions trading and economic benefits have not been well combined. Power companies with outstanding energy conservation and environmental protection work have difficulty obtaining reasonable economic compensation from transactions, while power companies with poor environmental protection work still emit large amounts of carbon oxides without fear. The combination of carbon emission rights and economic interests, and the mobilization of power companies' enthusiasm are the future development trend of carbon emissions markets.

Zhang Yanlin, research director of China Investment Consulting Co., Ltd. pointed out that carbon emissions trading is necessary in the power industry and has far-reaching significance. It has a significant impact on the effective development of energy conservation and environmental protection in China and the sustainable development of the power industry. The relevant national environmental protection agencies and the power regulatory authorities should actively coordinate and do a good job in the determination of carbon emissions, and timely introduce relevant laws and regulations to protect the carbon emissions trading market.

China Investment Advisor "2012-2016 China's electricity industry investment analysis of energy-saving emission reduction and forecast report" pointed out that the power industry, energy-saving emission reduction task is heavier and greater pressure, but it will have a major impact on China's future economic and healthy development. As China gradually increases its investment in energy conservation and environmental protection, carbon emissions trading is expected to be implemented as soon as possible in the power industry. The power industry will achieve clean production, clean transportation, and clean use.