The sound of the two sessions | Li Yonglin, member of the National Committee of the Chinese People's Political Consultative Conference and deputy general manager of Sinopec: It is recommended to accelerate the construction of the national carbon market system system and scientifically formulate a carbon quota allocation mechanism

After China announced the timetable for carbon peaking and carbon neutrality, the construction of a unified national carbon emission trading market has become an important starting point for achieving this goal, but the current construction of the national carbon market is still in its early stages, and many aspects need to be improved.

Li Yonglin, member of the National Committee of the Chinese People's Political Consultative Conference and deputy general manager of Sinopec, suggested in the proposal that the construction of the national carbon market system be accelerated, the carbon quota allocation mechanism should be scientifically formulated, the management level of the carbon market should be improved and improved, and carbon emission reduction should be effectively promoted.

As a market mechanism, emissions trading can effectively reduce the overall cost of emission reduction and achieve the goal of controlling greenhouse gas emissions. In recent years, China has actively promoted the construction of carbon emission trading markets, and since 2011, it has launched local carbon trading pilots in seven provinces and cities, and has made positive progress. On this basis, in December 2017, China launched the construction of a national carbon market. In January 2021, China issued the Administrative Measures for Carbon Emissions Trading (Trial Implementation), marking a new stage in the construction and development of the national carbon trading market.

Since it is still in the early stage of construction, Li Yonglin believes that the current problems are mainly that the carbon trading system system is not sound enough, the quota allocation is not scientific and reasonable, and the management level is not complete enough. For example, the Administrative Measures for Carbon Emissions Trading (Trial Implementation) lacks a superior law, and there is still no national legal support such as the Environmental Protection Law and the Energy Conservation Law.

Li Yonglin suggested: First, accelerate the construction of the national carbon market system system. Legislation comes first, with higher-level legislation to ensure the authority of the carbon market, and to introduce the "National Regulations on the Administration of Carbon Emissions Trading" as soon as possible to provide legal support for the construction of the carbon market system. In addition, on the basis of the Administrative Measures for Carbon Emissions Trading (Trial Implementation), further formulate and improve relevant supporting systems and rules to guide enterprises to carry out carbon trading work.

The second is to scientifically formulate a carbon quota allocation mechanism. It is recommended to unify the quota allocation method, reflect the advanced nature of carbon emissions and emission reduction of enterprises, effectively adjust the carbon price by optimizing the total amount of quotas, give play to the role of market mechanisms, improve the enthusiasm of enterprises to participate in the carbon market, promote enterprises to implement emission reduction programs more scientifically and efficiently, and use CCER and other related mechanisms to promote the development of new technologies, new industries and new formats of energy conservation and carbon reduction.

The third is to improve the management level of the carbon market。 Encourage group enterprises to give full play to the advantages of collectivization and intensive control, coordinate the internal balance of carbon emission quotas and carbon market platform trading of subordinate enterprises, and achieve greater emission reduction efforts driven by overall promotion and advanced promotion。

The fourth is to expand coverage and participants. It is recommended to gradually expand the scope of the national carbon market to cover the industry, timely incorporate petrochemical, building materials, steel, nonferrous metals, aviation and other industries into the carbon market, design more trading varieties and access mechanisms, attract more participants, improve carbon market activity, and enhance the participation of the whole society in carbon peaking and carbon neutrality.

Fifth, increase the variety of carbon trading. It is recommended to explore and study the introduction of financial derivatives such as carbon futures, options, and forward products into the carbon market after the national carbon market is mature and perfected.