Upload
green-initiatives-
View
63
Download
6
Embed Size (px)
Citation preview
Outline
• What is carbon trading?
• What is the ultimate goal of carbon trading?
• Criticism of carbon trading
• China carbon trading market
• Arup relevant services
$
Right to emit
Right Emission Right Emission
Economic basis: Property rights
Carbon pricing: a solution to negative externality caused by carbon emission/climate change
Demand vs Supply
Political basis: International law Kyoto Protocol
Operational basis: ET, CDM, JI
Trading vehicle: Allowance, Emission Reduction Unit
Right
$
Right to emit
Reduce overall carbon emissions in a most cost efficient way
Mitigate Climate Change
For the 1st time drive human being jointly combat with a global issue of negative externality
A trigger to reshape the economy
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
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
Is it a dangerous distraction?
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
2150
2200
2005 2006 2007 2008 2009 2010 2011 2012 2013
Verified emissions of EU capped emitters
Mt CO2-eq Source: EU ETS Source: IDIACMt CO2-eq
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
0.00
5000.00
10000.00
15000.00
20000.00
25000.00
30000.00
35000.00
40000.00
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Global Fossil-Fuel CO2 Emissions
The share of emissions covered by ETS only amounts to 10% of total so far.
Source: State and Trends of Carbon Pricing/2014
Criticism of carbon trading
Source: GHG Data - UNFCCC%
We see Framework Convention on Climate Change works.
Source: UNFCCC
%
Criticism of carbon trading
China carbon trading
China Fossil fuels Combustion Carbon Emission Ranking
9977 MTCO2
1st out of 2162013
Source: Global carbon atlas
8040 MTCO2
1st out of 2162012
2.1 kgCO2/GDP11th out of 2162013
7.2 tCO2/person51th out of 2162013
1.8 kgCO2/GDP7th out of 2162012
5.8 tCO2/person52th out of 2162012
Production based
Consumption based
Whole Country Per Person Per GDP
China carbon trading
Transfer of emissions=Production based - consumption based
Source: Global carbon atlas
Transfer
0
500
1000
1500
2000
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Transfer emissions of China
0
1000
2000
3000
4000
5000
6000
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Global transfer emissions 12%
14%16%
14%12% 11% 11%
12%
17%
21%
23%
27%29%
27% 27%28% 27%
29%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Percent of China in Global Transfer
China carbon trading
2009.11
Cut 40-45% emissions on the 2005 basis by 2020
2011.10
Officially announce to set up 7 province/city carbon trading pilots
2012.06
China GHGs voluntary emission reduction management method (pilot version)
2013.6
Shenzhen carbon trading pilot launched
2013.11
Beijing Shanghai carbon trading pilot launched
2013.12
Guangdong Tianjin carbon trading pilot launched
2014.4
Hubei carbon trading pilot launched
2014.6
Chongqing carbon trading pilot launched and the 1st
year of carbon trading compliance period closed
2014.11
Target to reach the emission peak value by 2030, non-fossil fuel ratio of 20% in total primary energy consumption
China carbon/fossil fuel based energy reduction commitment and carbon trading action milestones
China carbon trading
China carbon market size and trading price
Price Shenzhen
Shanghai
Beijing
Guangdong
Tianjin
Hubei
Chongqing
Trading volume: 17 MTCO2Average trading price: 35.56 CNY/TCO2
Total allowance volume: around 1200 MTCO2
50
160
388
324
130 132
0
50
100
150
200
250
300
350
400
450
China Carbon Trading Pilot Allowance Volume
Beijing Shanghai Guangdong Hubei Chongqin Shenzhen
Source: 2014 China Carbon Market Report by SinoCarbon Innovation & Investment
Arup relevant services
Reduce overall carbon emissions in a most cost efficient way
Mitigate Climate Change
A trigger to reshape the economy
For the 1st time drive human being jointly combat with a global issue of negative externality
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, a community or a corporate.
Actively engaged in relevant international climate friendly actions or alliances such as C40, 100 City Resilience, the Ellen MacArthur Foundation’s Circular Economy 100.