Tianjin Climate Exchange

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Tianjin Climate Exchange (TCX) is a domestic carbon market cap-and-trade scheme exchange. Jeff Huang is assistant chairman of Tianjin Climate Exchange and vice-president of Chicago Climate Exchange.

Contents

It is China’s first integrated exchange for trading of environmental financial instruments

TCX is a joint venture between Chicago Climate Exchange, the municipal government of Tianjin and the asset management unit of PetroChina, the country’s largest oil and gas producer.

Cap-and-trade schemes are programs under which member companies commit to lowering their greenhouse gas emissions by a certain amount in a certain period of time and trade carbon credits generated by this. As China does not have a national cap on emissions, any such scheme would be voluntary, similar to the situation in the US when the Chicago Climate Exchange launched in 2003.

History

On September 25 2008, Tianjin Climate Exchange, co-established by CNPC Assets Management Co., Ltd. (holding a 53% stake), Tianjin Property Rights Exchange (北方产权交易市场) (holding a 22% stake), and Chicago Climate Exchange (CCX) (holding a 25% stake), was unveiled in the Tianjin Binhai New Area.

At the request of the State Council, Tianjin Climate Exchange is established as China's first comprehensive platform for trading carbon credits under the Clean Development Mechanism, and will promote environmental protection and emission reduction by means of market and financial measures.

Tianjin Climate Exchange has the following goals: to help enterprises cost-effectively reduce emissions of pollutants, such as sulfur dioxide, chemical oxygen demand, etc.; to help enterprises achieve maximum energy efficiency at minimum cost; to help enterprises manage environmental risks and meet increasing disclosure requirements; and to provide enterprises with integrated international emissions market access and experience.

In 2006, Tianjin Binhai New Area was designed by the State Council of the PRC as the national experimental zone for comprehensive reforms related to financial innovation, land and administrative management.

China's Eleventh Five-Year Plan (2006-10) called for cutting energy consumption per unit of GDP up to 20 percent by 2010 while reducing major pollutants, such as sulfur dioxide (SO2) by 10 percent.[3]

Tianjin Property Rights Exchange

TPRE was launched in 1994, under government approval. It is a government agent under the charge of Tianjin SASAC and is the only appointed exchange authorized by Tianjin SASAC for state-owned assets and equities transaction. It is one of three national institutions permitted by SASAC to transact assets and equities of SOEs under control of central government.[2]

Trade products and services

Greenhouse gas emissions trading Energy efficiency market product trading Emissions trading based on mandatory government targets Carbon neutral trading and other forms of voluntary carbon reduction trading International trade in greenhouse gas emissions Trading of emission rights for major pollutants Sulfur dioxide emissions trading Chemical oxygen demand emission trading Emissions trading of nitrogen oxides and other pollutants Comprehensive services for energy conservation and emission reduction Integrated services for clean development mechanism (CDM) projects Integrated services for contract energy management (EMC) projects Low carbon solution design for region, industry and project Other advisory services Trading product development and design Emission trading product development and design Development and design of environmental financial derivatives

See also

Related Research Articles

Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants.

Environmental finance is a field within finance that employs market-based environmental policy instruments to improve the ecological impact of investment strategies. The primary objective of environmental finance is to regress the negative impacts of climate change through pricing and trading schemes. The field of environmental finance was established in response to the poor management of economic crises by government bodies globally. Environmental finance aims to reallocate a businesses resources to improve the sustainability of investments whilst also retaining profit margins.

This glossary of climate change is a list of definitions of terms and concepts relevant to climate change, global warming, and related topics.

Fossil fuel power station Facility that burns fossil fuels to produce electricity

A fossil fuel power station is a thermal power station which burns a fossil fuel, such as coal or natural gas, to produce electricity. Fossil fuel power stations have machinery to convert the heat energy of combustion into mechanical energy, which then operates an electrical generator. The prime mover may be a steam turbine, a gas turbine or, in small plants, a reciprocating gas engine. All plants use the energy extracted from expanding gas, either steam or combustion gases. Although different energy conversion methods exist, all thermal power station conversion methods have efficiency limited by the Carnot efficiency and therefore produce waste heat.

A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).

An emission intensity is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule of energy produced, or the ratio of greenhouse gas emissions produced to gross domestic product (GDP). Emission intensities are used to derive estimates of air pollutant or greenhouse gas emissions based on the amount of fuel combusted, the number of animals in animal husbandry, on industrial production levels, distances traveled or similar activity data. Emission intensities may also be used to compare the environmental impact of different fuels or activities. In some case the related terms emission factor and carbon intensity are used interchangeably. The jargon used can be different, for different fields/industrial sectors; normally the term "carbon" excludes other pollutants, such as particulate emissions. One commonly used figure is carbon intensity per kilowatt-hour (CIPK), which is used to compare emissions from different sources of electrical power.

Carbon offset

A carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e). One tonne of carbon offset represents the reduction of one tonne of carbon dioxide or its equivalent in other greenhouse gases.

Coal pollution mitigation Series of systems and technologies to mitigate the pollution associated with the burning of coal

Coal pollution mitigation, sometimes called clean coal, is a series of systems and technologies that seek to mitigate the health and environmental impact of coal; in particular air pollution from coal-fired power stations, and from coal burnt by heavy industry.

Carbon accounting or greenhouse gas accounting refers to processes used to measure how much carbon dioxide equivalents an organization emits. It is used by states, corporations, and individuals to create the carbon credit commodity traded on carbon markets. Examples of products based on forms of carbon accounting may be found in national inventories, corporate environmental reports, and carbon footprint calculators.

A low-carbon economy (LCE), low-fossil-fuel economy (LFFE), or decarbonised economy is an economy based on low-carbon power sources that therefore has a minimal output of greenhouse gas (GHG) emissions into the atmosphere, specifically carbon dioxide. GHG emissions due to anthropogenic (human) activity are the dominant cause of observed global warming since the mid-20th century. Continued emission of greenhouse gases may cause long-lasting changes around the world, increasing the likelihood of severe, pervasive, and irreversible effects for people and ecosystems.

Greenhouse gas emissions Sources and amounts of greenhouse gases emitted to the atmosphere from human activities

Greenhouse gas emissions come from a range of anthropogenic activities, mainly carbon dioxide emissions come from combustion of fossil fuels, principally coal, petroleum and natural gas, with additional contributions coming from deforestation and other changes in land use. The leading source of anthropogenic methane emissions is agriculture, closely followed by gas venting and fugitive emissions from the fossil-fuel industry. Traditional rice cultivation is the second biggest agricultural methane source after livestock, with a near-term warming impact equivalent to the carbon-dioxide emissions from all aviation.

A mobile emission reduction credit (MERC) is an emission reduction credit generated within the transportation sector. The term “mobile sources” refers to motor vehicles, engines, and equipment that move, or can be moved, from place to place. Mobile sources include vehicles that operate on roads and highways, as well as nonroad vehicles, engines, and equipment. Examples of mobile sources are passenger cars, light trucks, large trucks, buses, motorcycles, earth-moving equipment, nonroad recreational vehicles, farm and construction equipment, cranes, lawn and garden power tools, marine engines, ships, railroad locomotives, and airplanes. In California, mobile sources account for about 60 percent of all ozone forming emissions and for over 90 percent of all carbon monoxide (CO) emissions from all sources.

Greenhouse gas emissions by the United States Climate changing gases from the North American country

The United States produced 6.7 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2018, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In total the USA has emitted 400 billion metric tons, more than any other country. This is over 15 tones per person and, amongst the top ten emitters, is the second highest country by greenhouse gas emissions per person after Canada. Because coal-fired power stations are gradually shutting down, in the 2010s emissions from electricity generation fell to second place behind transportation which is now the largest single source. In the year 2018, 28% of the GHG emissions of the United States were from transportation, 27% from electricity, 22% from industry, 12% from commercial and residential buildings and 10% from agriculture.

Energy policy of China National energy production and sources

Ensuring adequate energy supply to sustain economic growth has been a core concern of the Chinese government since 1949. The country is the world's largest emitter of greenhouse gases, and coal in China is a major cause of global warming. However, from 2010 to 2015 China reduced energy consumption per unit of GDP by 18%, and CO2 emissions per unit of GDP by 20%. On a per-capita basis, it was the world's 51st largest emitter of greenhouse gases in 2016.

This is a list of climate change topics.

The Chinese national carbon trading scheme is a cap and trade system for carbon dioxide emissions set to be implemented in the 2020s. This emission trading scheme (ETS) creates a carbon market where emitters can buy and sell emission credits. From this scheme, China can limit emissions, but allow economic freedom for emitters to reduce emissions or purchase emission allowances from other emitters. China is currently the largest emitter of greenhouse gases (GHG) and many major Chinese cities have severe air pollution. If fully implemented, China would be the largest market in carbon trading. The scheme eventually plans to limit emissions from six of China's top carbon dioxide emitting industries, including coal-fired power plants. China was able to gain experience in drafting and implementation of an ETS plan from the United Nations Framework Convention on Climate Change (UNFCCC), where China was part of the Clean Development Mechanism (CDM). From this experience with carbon markets, and lengthy discussions with the next largest carbon market, the European Union (EU), as well as analysis of small scale pilot markets in major Chinese cities and provinces, China's national ETS will be the largest of its kind and will help China achieve its Intended Nationally Determined Contribution (INDC) from the Paris Agreement.

The milestones for carbon capture and storage show the lack of commercial scale development and implementation of CCS over the years since the first carbon tax was imposed.

BlueNext was a European environmental trading exchange, considered the largest CO2 permit spot market, with headquarters in Paris, France. On October 26, 2012, BlueNext announced that it would close permanently its spot and derivatives trading operations as of December 5, 2012.

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