Lu WU 吴露 Building Sustainability 绿建部门
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Outline • What is carbon trading? • What is the ultimate goal of carbon trading? • Criticism of carbon trading • China carbon trading market • Arup relevant services
What is carbon trading?
Right Emission Right Emission Right Political basis: International law Kyoto Protocol Economic basis: Property rights $ $ Demand vs Supply Operational basis: ET, CDM, JI Right to emit Right to emit Trading vehicle: Allowance, Emission Reduction Unit Carbon pricing: a solution to negative externality caused by carbon emission/climate change
What is the ultimate goal of carbon trading?
Reduce overall carbon emissions in a most cost efficient way Mitigate Climate Change For the 1 st time drive human being jointly combat with a global issue of negative externality This is a vision of the future that goes beyond just surviving or enduring climate change, beyond “mitigating” and “adapting” to it in the grim language of the United Nations. It is a A trigger to reshape the economy vision in which we collectively use the crisis to leap somewhere that seems, frankly, better than where we are right now. -- Naomi Klein in This Changes everything capitalism vs the climate We shape a better world
Criticism of carbon trading
Criticism of carbon trading Is it a dangerous distraction? Verified emissions of EU capped emitters Global Fossil-Fuel CO2 Emissions 40000.00 2200 2150 35000.00 2100 30000.00 2050 25000.00 2000 1950 20000.00 1900 15000.00 1850 1800 10000.00 1750 5000.00 1700 0.00 1650 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 Mt CO2-eq Source: EU ETS Mt CO2-eq Source: IDIAC The capped emissions decreased while the global dependence on the fossil fuel increased. Carbon leakage happened and carbon bubble may occur if all the efforts including carbon pricing mechanism do not work. You have been negotiating all my life. --Anjali Appadurai, 21 years old
Criticism of carbon trading Source: State and Trends of Carbon Pricing/2014 The share of emissions covered by ETS only amounts to 10% of total so far.
Criticism of carbon trading % Source: GHG Data - UNFCCC % Source: UNFCCC We see Framework Convention on Climate Change works.
China carbon trading market
China carbon trading China Fossil fuels Combustion Carbon Emission Ranking Production based Per Person Per GDP Whole Country 9977 MTCO 2 7.2 tCO 2 /person 2.1 kgCO 2 /GDP 1 st out of 216 51 th out of 216 11 th out of 216 2013 2013 2013 Consumption based 8040 MTCO 2 5.8 tCO 2 /person 1.8 kgCO 2 /GDP 1 st out of 216 52 th out of 216 7 th out of 216 Source: Global carbon atlas 2012 2012 2012
China carbon trading Transfer of emissions=Production based - consumption based Transfer Transfer emissions of China 2000 Percent of China in Global Transfer 1500 35% 1000 29% 27% 27% 28% 27% 29% 30% 500 27% 23% 25% 0 21% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20% 17% 16% 14% 14% 15% 12% Global transfer emissions 12% 11% 11% 12% 10% 6000 5000 5% 4000 3000 0% 2000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Global carbon atlas
China carbon trading China carbon/fossil fuel based energy reduction commitment and carbon trading action milestones 2014.11 2012.06 Target to reach China GHGs the emission voluntary peak value by 2009.11 2013.11 emission 2030, non- 2014.4 Cut 40-45% reduction Beijing fossil fuel ratio emissions on management Shanghai Hubei carbon of 20% in total the 2005 basis method (pilot carbon trading trading pilot primary energy by 2020 version) pilot launched launched consumption 2011.10 2013.6 2013.12 2014.6 Officially Shenzhen Guangdong Chongqing announce to carbon trading Tianjin carbon carbon trading set up 7 pilot launched trading pilot pilot launched and the 1 st province/city launched carbon trading year of carbon pilots trading compliance period closed
China carbon trading China carbon market size and trading price China Carbon Trading Pilot Allowance Volume 450 388 400 324 350 300 250 200 Trading volume: 17 MTCO2 160 130 132 150 Average trading price: 35.56 CNY/TCO2 100 50 50 Tianjin Shenzhen Price 0 Beijing Shanghai Guangdong Hubei Chongqin Shenzhen Shanghai Hubei Total allowance volume: around 1200 MTCO2 Beijing Chongqing Guangdong Source: 2014 China Carbon Market Report by SinoCarbon Innovation & Investment
Arup relevant services
Arup relevant services Reduce overall carbon emissions in a most cost efficient way Help the client understand how much is their emissions, where does the emissions come from, how does the emissions relate to the normal operation, what is the best way to monitor, measure and reduce emissions, what risks and opportunities would the relevant carbon reduction regulations or carbon market bring to the clients, either regarding a project, Mitigate Climate Change a community or a corporate. For the 1 st time drive human being jointly combat with a global issue of negative externality Actively engaged in relevant international climate friendly actions or alliances such as C40, 100 City Resilience, the Ellen MacArthur Foundation’s Circular A trigger to reshape the economy Economy 100.
Arup relevant services
Arup relevant services
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