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Climate change has become a global hot issue. In 2015, at the 21st United Nations Framework for Climate Change, the Paris Agreement was approved. The overall goal of the Paris Agreement is to “limit the global temperature increase in the current century to 2 degrees Celsius, and at the same time, we will seek to limit the temperature increase to 1.5 degrees Celsius in a step.” The agreement requests parties to determine the goals and actions to face climate change based on their own circumstances and submit the National Independent Contribution Plan (NDCs).
Choose appropriate policy things to ensure the reality of the Paris Agreement and the national independent goals has become an important topic in front of the authorities of various countries. Whether it is the power industry’s carbon removal and industrial low-carbon transformation, or the development of cleanup and the addition of forest carbon transfer, it is necessary to change the existing production and consumption forms, as well as continuous innovation in technical research and development, infrastructure construction and investment mechanisms. At the same time, the bureau must also ensure that these transformations can create new economic growth points, increase employment opportunities, and further improve the level of national careers. Carbon pricing policies may be a helping force. Certification of carbon emissions can guide capital flows into the low-carbon field, improve energy efficiency and project competition, encourage enterprises to develop and produce low-carbon products, make low-carbon products more popular among consumers, and provide real-life supply paths for green ecological value.
There are two important mechanisms for carbon pricing today: carbon tax and market-based mechanism. The former is to set a fixed tax rate for the single emissions of the product, internalizing internal emissions. The latter is to use the market to find and release appropriate carbon price signals, thereby promoting emission reduction.
In particular, the carbon market mechanism can also be divided into total volume, cap&trade and carbon crediting mechanism.
Total volume and purchase and sale mechanism are also called the carbon emission rights purchase and sale system (ETS) by Sugar daddy. The authorities set a lower limit for the total emissions in the market and issue emission allocations to enterprises that do not exceed the lower limit; all enterprises within the coverage range can purchase and sell them, thereby forming a carbon price. China’s national carbon emission rights buying and selling system uses this mechanism.
The carbon trust mechanism is to establish an emission baseline, if the company lowers emissions below the baseline, or seals emissions forever, or generates carbon transfer, carbon trust can be created. The demand for carbon credibility comes from departmental contractual obligations in the system of offsetting carbon emissions. China’s national verification voluntaryDisplacement reduction (CCER) is derived from the carbon trust mechanism.
According to the latest statistics of the world’s banks, as of April 2021, 30 carbon market mechanisms are operating around the world (24 of which are carbon emission rights purchase systems), covering more than 16% of the world’s annual emissions of temperature gas. A report from Refinitiv pointed out that the global carbon market purchase amount in 2020 was as high as US$229 billion, a 20% increase from 2019 and five times the total purchase amount in 2017. More and more countries and authorities have chosen a focus policy for market machine production to reduce gas emissions in temperature.
In 2005, the European Union and Norway took the lead in launching the carbon emissions buying and selling system. Different from other carbon pricing, the carbon emissions system limits the total emissions covered by the coverage area. However, the carbon price is not fixed. The principle is determined by the allocation supply and demand relationship, so as to ensure that the society achieves the established emission reduction target with a minimum capital.
This article will focus on the five relatively mature carbon emission rights buying and selling systems based on the long international operation time, namely the EU ETS, Sugar baby, simple EU ETS, and New Zealand carbon emissions. baby‘s purchase system, California total and purchase plan, Korean carbon emissions purchase system and the american regional temperature gas initiative (simplified by RGGI) are examples, discussing the extensive experience of carbon market design and implementation, as well as an indication of the development of China’s carbon market.
The wide international experience of carbon market design and implementation
●Policy positioning and system overview
Every country or region needs to combine its own national conditions and its national reduction goals and actions to establish a fruitful climate management system at any time. Therefore, the market system has a unified operational principle, but in different climate policies, the market is under the influence of different market policies.Under the framework of ar daddy, in order to meet the specific targets and paths of the local area, the color of the carbon market is different: for example, the EU will be EU. ETS is the cornerstone of its climate policy combination; California has a spike climate and power policy law, and when other policy measures reduce the consequences of emissions are less than expected, the price signal of carbon buying can act as a powerless support; New Zealand regards carbon buying and selling as an important policy for reducing emissions of temperature air; South Korea regards its national carbon buying and selling system as a way to achieve the failure or lack of national self-reliance commitmentsPinay escort‘s policy stuff; while RGGI only uses carbon purchases to control and reduce carbon dioxide emissions generated by fossil fuel combustion in the state power industry.
Due to differences in policy positioning, the design and implementation of different carbon markets have become diversified. The size of the five carbon emissions purchasing systems, the quantity of infrastructure and entities, and the degree of carbon prices are very different.
Manila escort●The mutual influence between other policies
In addition to reducing carbon emissions, carbon buying and selling can also promote the real environmental, economic and social goals, and form a coherent effect in the policy. Taking California total and buying and selling plans as an example, it will transport the route into the carbon market, and the coherent effects it can produce should include reducing air purification and relieving road blockages. In addition, California also allows carbon exchange generated by forestry projects to offset the reputation and enter the carbon market, which has also had a positive impact on local natural environment protection. EU ETS is one of the earliest markets to introduce the auction method to allocate allocation, and the local expenditure brought by the auction is used to support projects that can generate specific benefits. According to a European Union report, from 2012 to 2019, the EU members received approximately 50.5 billion euros through auctions; 37% of these expenditures were for renewable power, 3Sugar baby2% were for energy efficiency improvement, 17% were for sustainability, and 7% were for technical research and development. Starting in 2021, the allocation expenditures obtained by the EU will be used to ensure fair transformation of financial support for innovative technologies (such as carbon capture and storage), industrial process reduction, renewable power generation and energy conservation projects, as well as energy efficiency improvements in low-spending members and modernization reforms in power systems.
In contrast, other policies can also have an aggressive, severe and even negative impact on the carbon market. Among them, the impact of dynamic policies on the carbon market is the most typical example.In theory, carbon pricing can promote carbon removal in the power industry. First, carbon prices add to the production cost of high-carbon electricity generation, while low-carbon electricity is becoming more competitive, and thus Escort manila promotes the transformation of electricity development technology and investment from fossil power to clean power. Secondly, the increase in the capital of “high carbon power generation” will gradually change the consumption behavior, prompting it to improve its energy efficiency or turn to low carbon power. However, the structure and regulatory policies of the electricity industry will significantly affect this process. Generally speaking, the power system mainly based on coal and electricity has a strong reaction to the induction of carbon prices. If existing coal-electric facilities are retired longer and the early service brings less pure assets, then the cost and resistance to carbon pricing will also decrease accordingly. In addition, the regulation of power markets (such as California and South Korea) can restrain the transmission of carbon price signals in the supply chain. Therefore, when different countries and regions are entering the power generation industry, they have fully considered the local power structure and regulatory policies, especially in the design of coverage and monitoring points, combining actual situations to enable carbon buying a TC: