Hosted by China Financial Frontier Forum (CFAF) and supported by Shanghai Environment and Energy Exchange, Beijing Green Exchange, Tianjin Emissions Exchange, Guangzhou Carbon Emissions Exchange, etc. "The Second China Carbon Trading and ESG Investment Cooperation Development Summit" July 8 in Shanghai.The participants believed that the construction of the national carbon market is an important part of my country's climate change policy system. To better develop the carbon market, it is necessary to have a correct understanding of the opportunities and challenges facing the development of the carbon market.
Ma Aimin, deputy director of the National Climate Change Strategy Research and International Cooperation Center, said at the meeting that the coverage of the carbon market needs to be steadily expanded according to the carbon emissions of the industry and the basic situation of emissions, so as to realize the carbon market for a wider range and more focus. effective control of greenhouse gas emission sources.In terms of increasing transaction entities, it is necessary to study the introduction of institutional investors in a timely manner.The increase of trading entities is conducive to the formation of a reasonable market price and enables the carbon market to give full play to the role of price discovery.
In the long run, he believes that for the carbon market to play a bigger and better role, efforts need to be made in five aspects: first, to require the carbon market to form a clear price signal to promote the internalization of carbon costs; second, to effectively control carbon from key sources emissions to help achieve climate change goals; the third is to guide the future investment direction of enterprises and promote the adjustment and optimization of the industrial structure; the fourth is to provide enterprises with emission reduction strategies to reduce the cost of social emission reduction; the fifth is to strengthen the competitiveness of the international market and strengthen my country Market pricing position.
"The development of China's carbon market is very good, and the statistics are much higher than expected. I believe that China will show the same attractiveness in the next two or three years." Founder of Chicago Climate Exchange, American Finance Exchange founder Richard Sandel said.
In terms of carbon emission rights futures, Jeff Huang, founder and CEO of AEX and former vice president of the Chicago Climate Exchange, said that many large futures positions in China are small, but the daily trading volume is relatively large, reflecting the relatively large participation volume. In emission futures, the proportion must be adjusted to increase the participation of institutions.At the end of last year, among the 85 futures exchanges in the world, the total open interest of futures exchanges was 1.08 billion lots, and the total open interest of China's futures exchanges was 30 million lots, less than 3% of the world's total.China's GDP is 17% of global GDP, so there is a lot of room for improvement in the future. Improving the pricing efficiency of carbon allowances requires the joint efforts of financial institutions and emission control companies.
"As the carbon market continues to expand and professional trading institutions enter the market, China can increase the proportion of less than 3% in my country to more than 10% by relying only on electricity futures, thermal coal futures, and carbon emission rights futures. We need to significantly increase the global proportion." Huang Jeff said.
