During the COP25 Madrid Conference last year, your research team of Tsinghua University and the Chinese government authorities jointly organized a side meeting on "Policy and System Design Ideas and Progress in the Construction of a Carbon Trading System." At this climate conference, we can be discussing the operation of the national carbon market without having to sit back and talk. " What are your predictions and expectations for China's construction of a national carbon market in 2020?
Answer | First of all, as far as I know, the construction of the national carbon market, including emission data reporting and verification, quota allocation, registration and quota trading platform construction, is proceeding in an orderly manner. I personally think that, as far as the power generation industry is concerned, it is not only necessary but also possible to achieve quota trading by the end of this year. The establishment of a national carbon market is an iconic action for China to actively respond to global climate change and a commitment to the international community. After the construction of seven pilot carbon markets and the preparation of the national carbon market in recent years, the conditions for the actual operation of the carbon market in the power generation industry this year have been basically mature. Of course, in the construction of the carbon market of the power industry this year, there are also many challenges, and there are still many difficult tasks to be completed, which require a lot of effort. It requires not only the active participation of the majority of enterprises, but also the collaboration of relevant government departments and local governments The cooperation of the government also requires good public opinion.
Since the announcement of the launch of the national carbon market at the end of 2017, China has continuously promoted the construction of a national carbon emissions trading system, and plans to start carbon trading in the power industry this year. As a core expert, you are responsible for carrying out research on important topics such as total amount setting and carbon quota allocation. In your opinion, what are the main opportunities and challenges that the Chinese carbon market will face in the next five years? Can you list the top three separately?
Answer | The biggest opportunity for China ’s carbon market construction is China ’s transformation of development philosophy and the promotion of ecological civilization to an unprecedented level, especially the clear integration of climate change into the national economic and social development of long-term planning, through laws, administration, technology, market Various means to fully promote various efforts to combat climate change. The construction of the national carbon market is a major institutional arrangement to promote high-quality economic development and to implement the guiding ideology of Jinping ’s ecological civilization construction. In my opinion, a fundamental challenge facing the construction of China's carbon market is that all aspects and strata of Chinese society have not formed a good consensus on the issue of climate change. Of course, this problem does not only exist in China, but also in many countries in the world. In addition, a practical challenge for the construction of China's carbon market is the issue of the team of carbon market operation and management. After the completion of China's national carbon market, it is the world's largest carbon market, and it needs a management team whose quantity and quality match the scale of China's carbon market.
Once the Chinese carbon market is launched, it will surpass regional carbon markets such as the EU and the United States and become the world's largest carbon trading system. However, there are still large gaps with these countries in terms of market liquidity, transparency, and financial innovation. In your opinion, in the process of building a sound and effective national carbon market, in what areas should China further strengthen international cooperation and exchange of experience?
Answer | The carbon market mechanism originated in western countries in Europe, America, and the developed countries and regions such as the European Union and California have also been operating in the carbon market for many years. There is no doubt that China's carbon market construction should actively absorb the experience and lessons of the carbon market construction of these countries and regions. In fact, China's national carbon market and several pilot carbon market constructions do the same. But it should also be noted that the theory of carbon market construction is relatively simple, but the actual implementation is very complicated. It must be combined with the national conditions of the country to build the carbon market, and then continue to improve it. Therefore, China's carbon market construction should be a good example of China's economic reform. China's national carbon market and pilot carbon market construction have actively borrowed foreign experience through international cooperation in monitoring, reporting, and verification of the MRV system (including transparency), total volume setting, quota allocation, and quota transaction management. Some pilot carbon markets have also conducted good international cooperation in market liquidity and financial innovation. I think that in the future, no matter in system design, or in terms of market liquidity, transparency, financial innovation, etc., there is a great demand for international cooperation and exchanges, which need to be further strengthened.
In February last year, your research team published the latest research results on the construction of China's carbon market infrastructure in the "Nature" sub-Journal "Nature-Climate Change" and the Massachusetts Institute of Technology-"China's Early Carbon Market Enterprise Emission Report "Consistency", in-depth discussion on the carbon emission reporting and verification mechanism of enterprises that support the operation of the carbon market. According to what you know, what are the main challenges for Chinese emission control companies in terms of carbon emission data, information disclosure and carbon asset management? What targeted capacity building and technical support are needed?
Answer | Everyone knows that the quality of emission data is the cornerstone of the success of the carbon market, which not only determines the effectiveness, efficiency and fairness of the carbon market's operation, but also determines people's confidence in the carbon market. Because in developing countries, emission data monitoring, reporting and verification capabilities are relatively low, the quality of carbon market data is particularly important. The MRV system is a basic system of the carbon market. Our joint research with the Massachusetts Institute of Technology shows that the MRV system and practices developed by Beijing in the construction of the pilot carbon market are effective, which can ensure the reliability and quality of data, and the accuracy of data continues to improve. Evidence of collusion by a third-party verification agency. Since 2015, key emission units across the country have also begun to implement data reporting and verification work, which has laid a good foundation for the construction of the national carbon market. I personally think that the main problems of China's MRV system construction are M and V, which should guide and help enterprises to formulate effective monitoring plans. In the initial stage of the establishment of the third-party emission data verification system, the government's role was still very large. Our research shows that if the government can purchase third-party verification services and use random sampling to review the verification reports of third-party verification agencies, the data quality can be effectively improved.
As the world's largest carbon market, the success of China's carbon market is not only important to China, but also more important for the global response to climate change. China has proposed the “Belt and Road” initiative and is committed to promoting green investment. After the successful establishment of China ’s national carbon market, the green “One Belt One Road” initiative can be used to introduce leading carbon countries to China ’s carbon market construction experience and support their establishment of a carbon trading system to promote global market-based cooperation on climate change. Any suggestions?
Answer | Such a good idea, I particularly agree. In my opinion, first of all, a coordination mechanism involving multiple government departments should be established. In addition to the Ministry of Ecology and Environment, the Ministry of Commerce, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission and other departments should also participate to incorporate the carbon market into the “Belt and Road” initiative In the countries along the “Belt and Road”, there is a lack of effective market mechanisms that encourage green investment. In addition, it is now possible to start the establishment of a “Belt and Road” initiative carbon market forum, focusing on developing countries along the “Belt and Road”, introducing China ’s carbon market construction experience, disseminating carbon market construction knowledge, and helping these countries cultivate a batch of carbon markets The talents needed for design and construction.
As a senior expert in the field of climate change and energy in China, how do you advocate and practice green, low-carbon and sustainable development in your daily life?
Answer | I basically do n’t drive, and insist on taking public transportation to work every day, and I am proud of it.
Zhang Xiliang, Ph.D. in System Engineering from Tsinghua University, is currently a professor and director of the Institute of Energy, Environment and Economics, Tsinghua University, a standing member of the China Energy Research Association and a chairman of the Energy System Engineering Professional Committee, a director of the China Sustainable Development Research Association, and China ’s Renewable Energy Learn to be a director. Professor Zhang Xiliang has long been engaged in research on green and low-carbon energy economic transformation, comprehensive evaluation of energy technology, energy and climate change policy and mechanism design. Professor Zhang Xiliang served as the head of the expert group for drafting the "Renewable Energy Law" (Expert Recommendation Draft) and the chief scientist of the National 973 Project. At present, he is the person in charge of major projects of the National Natural Science Foundation of China, the person in charge of the national key research and development plan, and the person in charge of the national carbon emission trading system overall design technology expert group. He also serves as the associate editor of the international academic journal Climate Policy, and the editorial board of Energy, Economics of Energy and Environment Policy and other journals. Professor Zhang Xiliang served as the lead author of the 4th and 5th Climate Change Assessment Report of the United Nations Special Committee on Climate Change (IPCC) and published several papers in Nature Energy, Nature Climate Change, AEA Papers and Proceedings and other journals.
