Zhitong Financial APP learned that the first Securities released a research report saying that for the environmental protection industry, voluntary greenhouse gas emission reduction trading can better reflect the value of environmental protection through economic means, and will have a positive impact on sub-areas such as waste incineration power generation, sewage treatment and air pollution treatment. From the perspective of practical operation, emission reduction approval involves not only methodology but also measurement, which requires the practice of a large number of cases to be continuously improved. therefore, the voluntary emission reduction trading in the environmental protection industry is a gradual process. Focus on the expansion of listed companies such as 600323.SH, 002573.SZ and 002658.SZ in the field of voluntary greenhouse gas emission reduction.

Events:In order to standardize the national voluntary greenhouse gas emission reduction trading and related activities, the Ministry of Ecology and Environment and the General Administration of Market Supervision jointly issued the measures for the Management of Voluntary greenhouse Gas Emission reduction Trading (for trial implementation).

The views of the pioneering securities are as follows:

The national voluntary greenhouse gas emission reduction trade is of great significance to the environmental protection industry.

Voluntary greenhouse gas emission reduction trading is an important institutional innovation to control and reduce greenhouse gas emissions through the market mechanism to achieve the goal of carbon peak carbon neutralization. The national voluntary greenhouse gas emission reduction trading market and the national carbon emissions trading market jointly constitute China's carbon trading system. After the voluntary emission reduction trading market is launched, all kinds of social subjects can independently and voluntarily develop greenhouse gas emission reduction projects in accordance with the relevant regulations. After the emission reduction effect of the project has been quantitatively certified by scientific methods and applied for registration, it can be sold in the market to obtain the corresponding contribution benefits of emission reduction. The launch of a voluntary emission reduction trading market is conducive to supporting the development of forestry carbon sequestration, renewable energy, methane emission reduction, energy conservation and efficiency, and encouraging a wider range of industries, enterprises and all sectors of society to participate in greenhouse gas emission reduction actions. it is of positive significance to promote economic and social green and low-carbon transformation and achieve high-quality development.

The measures for the Management of Voluntary greenhouse Gas Emission reduction Trading (for trial implementation) is the basic system to ensure the orderly operation of the national voluntary greenhouse gas emission reduction trading market.

The measures stipulate the various links of voluntary emission reduction trading and its related activities, and clarify the rights, obligations and legal responsibilities of project owners, examination and verification institutions, registration institutions, trading institutions, and so on, as well as the management responsibilities of ecological and environmental authorities and market supervision and management departments at all levels.

There are three most important elements in the voluntary greenhouse gas emission reduction transaction: uniqueness, additionality and conservatism.

Uniqueness means that the project does not participate in other greenhouse gas emission reduction trading mechanisms, and there is no repeated identification of the project or repeated calculation of emission reductions. Additionality means that when implemented as a voluntary greenhouse gas emission reduction project, compared with other alternatives that can provide the same products and services, it is not the best choice in terms of internal rate of return financial indicators and other obstacles such as financing and key technologies, but the implementation as a voluntary emission reduction project helps to overcome the above obstacles and compared with the baseline scenario established by the relevant project methodology. It has an additional emission reduction effect, that is, the greenhouse gas emissions of the project are lower than the baseline, or the greenhouse gas removals are higher than the baseline. Conservatism means that in the process of accounting or verification of emission reduction of voluntary greenhouse gas emission reduction projects, if there is a lack of effective technical means or technical specifications, there is a certain degree of uncertainty, when it is difficult to accurately judge the relevant parameters and technological paths, conservative methods should be used to estimate and take values to ensure that the emission reduction of the project will not be overcalculated.

Risk Tips:The progress of policy landing is lower than expected.