Under the concept of energy saving and energy reduction and energy revolution, carbon trading has gradually entered the field of vision of the photovoltaic industry. How should a photovoltaic power station participate in carbon trading?

1. How is the emission reduction calculated? Who will do it?

The calculation of emission reductions is mainly the choice of methodology. Choose a different methodology to calculate based on your project design and the carbon rights products that will be developed. Taking CCER as an example, as of April 18, 2014, the National Development and Reform Commission has published 178 documented CCER methodologies in four batches of information platforms, which have basically covered the applicable fields of domestic CCER project development. The methodology of photovoltaic power plants is also one of the most mature and widely used methodologies.

As for who is going to do it, it is mainly the writing of PDD (project design), which is mainly done by consulting companies and third-party certification agencies.

2. Do I have to join the Certified Voluntary Emission Reduction (CCER)?

Certified Voluntary Emission Reductions (CCER) is just a product of carbon trading. Whether or not to join CCER depends on your project design and market demand, which means depending on what kind of products your project wants to produce. Through what channels to trade out.

At present, the main targets of domestic pilot transactions are quotas and national certified voluntary emission reductions (CCERs). Quota refers to the emission reductions initially allocated by the policy makers to the enterprise (such as SHEA in Shanghai, BEA in Beijing), and the National Certified Voluntary Emission Reduction (CCER) refers to the emission reduction certificate obtained by implementing the project to reduce greenhouse gases. . In the quota transactions of each pilot, Shenzhen and Beijing are both products, while Shanghai is divided into 2013 quotas, 2014 quotas, and 2015 quotas.

Compared with whether to join the Certified Voluntary Emission Reduction (CCER) issue, how to make money is the most important. For the supply of CCER, the stock of CDM projects will be transferred to the domestic CCER market. There are new CCER projects to develop, so the supply will not be too small. On the one hand, the demand is offset by the current carbon trading pilots, on the other hand, the degree of approval at the national level, and the part is the end user's willingness to purchase.

3. The process and related departments involved

Regardless of whether it is a CDM project or a CCER or VCS project, the processes and design routes generated by carbon rights products are similar.

Taking CCER as an example, before the project is developed, it is necessary to evaluate the project through a professional consulting organization or technical staff to determine whether the project can be developed into a CCER project. The main basis is to evaluate whether the project conforms to the application of the CCER methodology recorded by the competent national authority. Conditions and whether the requirements for additionality arguments are met.

If the assessed project meets the applicable conditions of the methodology and meets the requirements of the additionality argument, the consulting firm will calculate the emission reductions generated by the project activities according to the methodology and refer to the CCER price of the carbon trading market to further estimate the emission reduction benefits of the project development. The development cost of CCER projects mainly includes the consultation costs of preparing project documents and monitoring plans, and the third-party costs for issuing audit reports and certification reports. The project owner analyzes the cost and benefits of the project development and decides whether to develop the project as a CCER project and determine the length of the monitoring period for each certification.

The development process of the CCER project has largely followed the framework and ideas of the CDM project. It mainly consists of six steps, namely: project document design, project validation, project filing, project implementation and monitoring, emission reduction verification and verification. Certificates and emission reductions are issued.

On October 24, 2013, China's voluntary emission reduction trading information platform was hosted by the National Development and Reform Commission on the China Clean Development Mechanism online line. The platform contains basic information such as notice announcement, management method, methodology, certification and certification body, and also publishes the contents of the project including the validation project, the registration project, and the issuance project. On this platform, voluntary emission reduction projects can be completed, approved, registered, and issued, and the emission reductions after the issuance can enter the exchange.

If a project wants to become a voluntary emission reduction project, it should first belong to the project category specified by the state and conform to the documented methodology. Methodology refers to methodological guidelines for determining project baselines, demonstrating additionality, calculating emission reductions, and developing monitoring plans.

The application for filing shall be examined and approved by the auditing agency before filing. At present, there are three certification and certification agencies for voluntary greenhouse gas emission reduction transactions registered with the National Development and Reform Commission, namely China Quality Certification Center (CQC), Guangzhou Saibao Certification Center Service Co., Ltd. (CEPREI) and Central United (Beijing) Certification. Center Limited (CEC).

After the completion of the examination and approval, the enterprises involved in greenhouse gas emission reduction in the central enterprises directly under the State-owned Assets Supervision and Administration Commission may apply directly to the National Development and Reform Commission for voluntary emission reduction projects; the enterprises not included in the list shall pass the project, and the project shall be developed at the provincial level. The department submits a filing application.

After receiving the application materials for the voluntary emission reduction project, the competent national authority shall entrust the experts to conduct the assessment for no more than 30 working days, and within 30 working days after the review is received (excluding the expert evaluation time) Projects that meet the following conditions are filed and registered in the National Register.

After the project produces emission reductions, verification and certification shall be carried out by the certification and certification body. The subsequent emission reduction record is similar to the project filing process. It also requires an expert assessment within 30 working days and a review within 30 working days.

4. The question about the high threshold of carbon trading

Regarding the high carbon trading threshold, this chart depicts the major market conditions and product classifications of previous international carbon trading. The same is true for the domestic model. Mandatory emission reductions are quota transactions, and voluntary emission reductions are CCER transactions.