Shute is a senior project manager at Shanghai ZHIXIN Carbon Asset Management Co., Ltd., one of China’s leading carbon asset management companies based in Shanghai, and the only subsidiary of State Grid of China specializing in carbon asset management. He is also a low-carbon economist, Certified Energy Manager (CEM) and an AEE member. Shute has over eight years experiences in carbon consulting and carbon audit, and is very familiar with carbon trading mechanism and carbon asset management. In addtition to answering some of the above questions Shute also gives an overview on the current situation and future perspective of China emission trading system, and counter-measures for enterprises interested in the system.

1. 12015/5/10
2014‐3‐17
Carbon Asset Introduction
碳资产简介
Shanghai ZHIXIN Carbon Asset Management Co., Ltd.
上海置信碳资产管理有限公司

2. Content
China Certified Emission Reduction
中国自愿减排量
Emission Allowance
碳排放配额
2

3. Mechanism
 Cost different for cutting GHG emission
减排成本的差异
 China Certified Emission Reduction (CCER) are from
carbon reduction projects and approved by government
中国自愿减排量来源于减排项目，由政府批准
 Initial emission allowances are allocated by government
初始配额由政府发放
 Emission allowance and CCER are valuable products and
tradable
配额和CCER均有价值，可交易
3

4. Mechanism
100
80
130
60
20
Company A Company B Company C
Allowance Emission CCER
20
10
Unit: tCO2
4

5. Origin
 Kyoto Protocol京都议定书
CDM: Clean Development Mechanism
IET: International Emission Trade
JI: Joint Implementation
CER: Certified Emission Reduction
AAU: Assigned Amount Unit
ERU: Emission Reduction Unit
5

6. CDM Project Cycle
6
Methodology Development
Project Design
Document
(PDD)
Preparation
Designated
National
Authority (DNA)
Approval
Designated
Operation Entity
(DOE) Validation
CDM Executive Board
(EB) Registration
Emission
Reduction (ER)
Monitoring
Designated
Operation Entity
(DOE) Verification
Issuance
Trading

7. CDM Market
 Oversupply of CER and AAU;
 Lack of demand due to the financial crisis in
2008/2009 followed by the ongoing recession in the
EU;
 In 2004‐2012, 6 billion $ CERs revenues for China.
7

8. CER Price
8
€/t

9. CCER Exchange Info‐Platform
 2013/10/24，CCER Exchange Info‐Platform online
http://cdm.ccchina.gov.cn/ccer.aspx
 CCER Administration
 Methodology
 Project Publication & Approval
 CCER Publication & Approval
 Designated Operational Entity (DOE)
9

10. CCER Demand
Pilot‐2015 CCER Offset Ratio CCER Demand (Mt)
Guangdong 10% 39.2
Hubei 10% 19.0
Shanghai 5% 7.0
Beijing 5% 3.1
Tianjin 10% 11.6
Chongqing 8% 8.7
Shenzhen 10% 4.5
Total ‐ 93.1
2016 10% 300‐400
10

11. CCER Supply
Afforestation, 1
Energy
Replacement, 6
Energy
Efficiency, 8
Biogas
Utilization, 17
Wind
Power, 50
Hydro
Power, 43
Solar Power, 15
Biomass, 12
Renewable
Energy, 120
11
 Total 152 projects approved.

12. CCER Supply
Energy
Replacement, 2
Energy
Efficiency, 2
Biogas
Utilization, 3
Wind
Power, 7 Hydro
Power, 10
Solar Power, 1
Biomass, 1
Renewable
Energy, 19
12
 Total 13.5 million ton CCER approved.

13. Revenue Estimation
13
Project Type
Estimated CCER
（tCO2e）
Annual Revenue
( million Yuan)
Solar power (30MW) 36,000 0.54
Wind power (30MW) 69,000 1.04
Hydro power (30MW) 96,000 1.44
Biomass to power
(30MW) 150,000 2.25

14. CCER Trading Volume
Date Exchange Volume (t)
2015/03/09 Guangdong 200,000
2015/03/12 Beijing 378,000
2015/03/24 Tianjin 60,000
2015/04/08 Shanghai 200,000
2015/04/22 Tianjin 200,000
2015/04/27 Tianjin 506,125
2015/04/27 Shenzhen 22,000
2015/04/27 Guangdong 5,000
2015/04/27 Shanghai 65,455
2015/04/28 Shanghai 189,733
2015/04/29 Shanghai 149,733
Total 1,976,046
14

15. CCER Project Cycle
15
PDD
Validation
Exchange
System
Registration
System
Application
Approval
Monitoring
Verification
Application
Approval
CO2, CH4, N2O
HFCs, PFCs, SF6
-CCERs +CCERs
3‐5months
2months
3‐5months
2months
1‐3months 6‐12months

16. Methodology
 Methodology：181, 173 of them translated from CDM
methodology, 8 of them are new developed.
16
 2 new methodologies developed by
Zhixin were approved :
① GHG reduction methodology by
constructing charging stations and
charging points to provide charging
service to electric vehicles and to
displace fossil fuel vehicles.
② Introduction of energy‐saving wire or
cable to new or existing power line.

17. CCER Application Condition
 Enterprises established within the territory of the P.R. China
 Construction date：as from 2005/2/16
 Project type：
① Project using CCER Methodology; or
② Approved CDM project by National Development and
Reform Commission(NDRC), but not registered in UN; or
③ Registered CDM project by UN and ER derived from pre‐
registration; or
④ Registered CDM project by UN, but ER are not issued.
17

18. Emission Reduction
Time [year]
GHGemission[tCO2e] Baseline emission
Project emission
Emission
Reduction
18

19. Renewable energy project
19
Baseline
Scenario
Project
Scenario

20. Fuel switch project
20
Baseline
Scenario
Project
Scenario

21. Energy efficiency project
21
Baseline
Scenario
Project
Scenario

22. Pilot Market
22
Beijing
Tianjin
Shanghai
Guangdong
Shenzhen
Chongqing
Hubei

23. Allowance Trading Volume
23
 Total Trading Volume: 19.29 million ton;
 Total Trading Amount: 0.67 billion Yuan.

24. Allowance Trading Price
24

25. Zhixin Carbon Index
 2014.04.30, Zhixin Carbon Index (ZXCI) was launched
in Shanghai Environment and Energy Exchange.
 ZXCI is the first carbon market index in China.
25

26. Zhixin Carbon Index
26
ZXCI Tendency
 ZXCI indicates China’s overall carbon market performance.
 ZXCI serves as an authoritative reference for index investing
and index derivatives development in the future.

27. Carbon Management
• CCER development and trading
CCER开发和交易
• Emission allowance trading
碳配额交易
• Carbon finance innovation
碳金融创新
① Emission allowance trusteeship 碳配额托管
② CCER/emission allowance pledge loan 质押贷款
③ Carbon fund 碳基金
④ Carbon bond 碳债券
27

28. 28
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Shute LI 李树德
TEL：159 2157 3598
E-mail：shude_li@163.com
Website：www.zhixincarbon.com
Shanghai ZHIXIN Carbon Asset Management
Co., Ltd.上海置信碳资产管理有限公司