CEC Organized the Trials of Simulated Trading and Test with Real Capital of the Nationwide Carbon Market for Power Sectors

May 14，2021 /CEC/ - The first compliant cycle of China’s carbon market for power sectors started on 1st January 2021 and more than 2000 entities and operators are going to register and trade on it. Authorized by the Climate Change Department of the Ministry of Ecology and Environment and in liaison with the China Hubei Emission Exchange (CHEE) and Shanghai Environment and Energy Exchange (SEEE), China Electricity Council (CEC) organized the trials of simulated trading and test with real capital of the nationwide carbon market for power sectors from 7th to 13th May 2021. 

The main target of the trials is to ensure the key functions of the trading and the registration systems could be run in good condition from the user perspective. The trials should apply a problem-oriented approach, conduct all-around inspection on system function integrity and effectiveness to make a good preparation for the launch of the nationwide carbon trading market by end of June.

To launch the nationwide carbon trading market showing strengthening efforts to reach the country's ambitious goal of net-zero emissions by 2060. Under the guidance of the Department of Climate Change at the Ministry of Ecology and Environment, CEC has built up a carbon trading working group and the Research Center for Low Carbon Development in power industry to support the policy making of the government, the research of the carbon trading market, the promotion of the low carbon concept, the formulation of the industrial standardization and the international communication. CEC played an important role as the think tank for the China government and the power industry. 

All the efforts done by CEC to formulate the “Total Quota Settlement and Allocation Implementation Plan of Carbon Emission Trading from Year 2019 to 2020”, to compile the “Power Generation Enterprise Carbon Emission Trading Technical Guide” and the “National Carbon Market Carbon Trading Training Materials”, to develop the Continuous Emission Monitoring System (CEMS) in the field of carbon emissions etc., are to provide the knowhow support to set up of the nationwide carbon trading market. 

In accordance with the Climate Change Department of Ecology and Environment Ministry, CEC will continue the following works for assisting the power industry to reach the nation’s carbon peak and carbon neutrality targets:

- organize and carry out the carbon emissions trading works in the power industry

- focus on the in-depth studies of the annual allowance allocation plan

- support the construction and implementation of the national carbon emissions trading credit system

- check the national carbon trading market’s list of key emission enterprises in the power generation industry

- invite the experts from the industry to conduct the audit on the quality of the power generation industry’s recorded data

- unfold the carbon emission data survey and statistical analysis in the power generation industry.