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.

Exchange (organized market) highly organized trading market

An exchange, or bourse also known as a trading exchange or trading venue, is an organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.

The Chicago Climate Exchange (CCX) was North America’s only voluntary, legally binding greenhouse gas (GHG) reduction and trading system for emission sources and offset projects in North America and Brazil.

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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.

Tianjin Municipality in Peoples Republic of China

Tianjin, alternatively romanized as Tientsin, is a municipality and a coastal metropolis in Northern China on the shore of Bohai Sea, it is one of the nine national central cities in Mainland China, with a total population of 15,621,200 as of 2016 estimation. Its built-up area, made up of 12 central districts, was home to 12,491,300 inhabitants in 2016 and is also the world's 29th-largest agglomeration and 11th-most populous city proper.

Asset management refers to systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets and to intangible assets. Asset management is a systematic process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner.

A division of a business, sometimes called a business sector or business unit (segment), is one of the parts into which a business, organization or company is divided. The divisions are distinct parts of that business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the divisions. However, in a large organization, various parts of the business may be run by different subsidiaries, and a business division may include one or many subsidiaries. Each subsidiary is a separate legal entity owned by the primary business or by another subsidiary in the hierarchy. Often a division operates under a separate name and is the equivalent of a corporation or limited liability company obtaining a fictitious name or "doing business as" certificate and operating a business under that fictitious name. Companies often set up business units to operate in divisions prior to the legal formation of subsidiaries.

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 achieving reductions in the emissions of pollutants.

Carbon tax tax on the carbon content of fuels

A carbon tax is a tax levied on the carbon content of fuels and, like carbon emissions trading, is a form of carbon pricing. The term carbon tax is also used to refer to a carbon dioxide equivalent tax, the latter of which is quite similar but can be placed on any type of greenhouse gas or combination of greenhouse gases, emitted by any economic sector.

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 reduction in emissions of carbon dioxide or greenhouse gases made in order to compensate for or to offset an emission made elsewhere

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

Coal pollution mitigation, often called clean coal, is a series of systems and technologies that seek to mitigate the pollution and other environmental effects normally associated with the burning of coal, which is widely regarded as the dirtiest of the common fuels for industrial processes and power generation.

An emission inventory is an accounting of the amount of pollutants discharged into the atmosphere. An emission inventory usually contains the total emissions for one or more specific greenhouse gases or air pollutants, originating from all source categories in a certain geographical area and within a specified time span, usually a specific year.

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 biosphere, but specifically refers to the greenhouse gas 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 impacts for people and ecosystems.

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 5.14 billion metric tons of carbon-dioxide equivalent greenhouse gas (GHG) emissions in 2017, the lowest since the early 1990s, but still the second largest in the world after greenhouse gas emissions by China and amongst the worst countries by greenhouse gas emissions per person. From year to year, emissions rise and fall due to changes in the economy, the price of fuel and other factors. The US Environmental Protection Agency attributed recent decreases to a reduction in emissions from fossil fuel combustion, which was a result of multiple factors including switching from coal to natural gas consumption in the electric power sector; warmer winter conditions that reduced demand for heating fuel in the residential and commercial sectors; and a slight decrease in electricity demand.

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. Primary energy use in China was 26,250 TWh and 20 TWh per million persons in 2009. According to the International Energy Agency, the primary energy use grew 40% and electricity use 70% from 2004 to 2009.

Global Warming Pollution Reduction Act of 2007 proposed bill

The Global Warming Pollution Reduction Act of 2007 - a bill to amend the Clean Air Act to reduce emissions of carbon dioxide, and for other purposes. It was proposed in the 110th United States Congress by Senators Bernie Sanders (I-VT) and Barbara Boxer (D-CA) on January 15, 2007.

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 by the end of 2017. 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 and many major Chinese cities have severe air pollution. With this plan, China will soon be the largest market in carbon trading. The scheme will 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 in 2016.

Greenhouse gas Gas in an atmosphere that absorbs and emits radiation within the thermal infrared range

A greenhouse gas is a gas that absorbs and emits radiant energy within the thermal infrared range. Greenhouse gases cause the greenhouse effect. The primary greenhouse gases in Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide and ozone. Without greenhouse gases, the average temperature of Earth's surface would be about −18 °C (0 °F), rather than the present average of 15 °C (59 °F). The atmospheres of Venus, Mars and Titan also contain greenhouse gases.

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.

Technological Innovation for Climate Change Mitigation

Climate change has worsened at the hands of human activity for centuries, and many scientific efforts have been made since the first political acknowledgment. In order to avoid the ongoing and potential impacts of climate change, mitigation technologies have been developed in order to adapt to the issue, each invention belonging to one of four specific groups of effort. These groups include energy efficiency improvements, renewable energy (RE), nuclear power/energy (NE), and carbon capture storage (CCS). However, concerns regarding mitigating and adapting to climate change commonly have a priority focus on the groups of carbon capture storage and renewable energy efforts.

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