How to trade CDM in carbon market?
According to Cheng Guang, a salesman of Beijing Zhongtan Technology Co., Ltd., according to the Marrakesh Agreement reached by the Seventh Conference of the Parties to the United Nations Framework Convention on Climate Change in 20001,a typical CDM project needs to go through the processes of project identification, project design, approval by participating countries, project approval, project registration, project implementation, monitoring and forecasting, and verification and verification of emission reduction. According to the Executive Board of the United Nations Framework Convention on Climate Change (EB), as a developing country, nearly 2,000 CDM projects in China have been approved by the National Development and Reform Commission, and 267 CDM projects have been successfully registered in EB.
As an intermediary company engaged in carbon market trading, Cheng Guang said that in the process of serving enterprises, they feel that whether CDM projects can be successfully registered in EB is the key factor for the success of trading CDM.
According to Cheng Guang, generally speaking, carbon market transactions include three processes: pre-development, carbon asset development and carbon asset project management. Each process stage includes many links. For example, in the early stage of development, it is necessary to carry out project analysis, that is, to determine which projects of the enterprise conform to the concept of CDM; It is necessary to further collect information, estimate emission reduction and determine the calculation method; It is necessary to predict the sustainable development ability and future market trends of enterprises and determine the development costs and risks.
In the development stage of carbon assets, it is necessary to carry out procedures such as project document design, government approval of buyers and sellers, signing of carbon purchase agreement, third-party certification, and United Nations registration. Cheng Guang said: "Each CDM project has an independent document report. The Chinese part is submitted to the China Municipal Government for approval, and the English part is submitted to the United Nations for third-party certification and registration. Registration requires online publicity for 50 days. If there is no doubt, the end of the publicity period means that the automatic registration is successful. "
It is reported that in the carbon asset project management stage, we should focus on three aspects. First, it is necessary to carry out daily management, mainly including process monitoring and the acquisition of enterprise operation information, in order to ensure the stable income of enterprise carbon assets and avoid communicating with buyers in advance to take preventive measures without generating emission reduction. Second, according to the actual emission reduction situation, according to the requirements of enterprises, project inspection reports are issued quarterly or annually. Third, carry out third-party certification of emission reduction, register with the United Nations, and finally deliver carbon assets.
In these processes, what expenses do enterprises need to pay? According to Cheng Guang, the general expenses include the audit of the project by a third party (10.8 million euros), the registration fee (0.2 US dollars/year to verify emission reduction), the monitoring, verification and certification fee (about10.0 million US dollars), the adaptation fee (2% of the total emission reduction verification) and the management fee (0.2 US dollars/year) collected by the CDM Board of the United Nations.
As for the role played by intermediary companies, Cheng Guang said that their main tasks are to identify CDM projects, find and screen carbon buyers for project owners, assist enterprises to negotiate with buyers, help enterprises maximize their benefits in emission reduction transactions, and ultimately contribute to the completion of CDM projects.
Looking at Hangang from the Successful Mode
For China enterprises, if they can successfully register a CDM project, they can not only reduce a certain amount of carbon dioxide, but also earn extra income by selling emission reductions. From this point of view, the success of Hangang is undoubtedly of exemplary significance to China enterprises.
In February, 2005, after the Kyoto Protocol came into effect, the CDM project office of Hebei Province considered that the combined cycle power generation project of waste gas recovery in Handan Iron and Steel Company (which can build a circulating power station by recovering excess blast furnace gas and coke oven gas generated in the steel production process, and can meet 36% of the annual electricity consumption of Handan Iron and Steel Company) met the requirements of CDM project, and immediately instructed Handan Iron and Steel Company to start the development and registration preparation of the project.
How to develop is also learned. According to Kyoto Protocol, there are three modes of CDM project development: unilateral mode, bilateral mode and multilateral mode. The latter two refer to finding the buyer at the beginning of the project development, and the buyer can give the project funds and technical support during the project development process. The unilateral mode is that the enterprise will find a buyer after completing the whole project independently. For example, the first CDM project in the field of renewable energy in China-the 30.6MW wind power CDM project in Liu Ao, Zhangpu, Fujian is a unilateral project.
The project developed by Hangang Group was finally finalized as a bilateral project. The project was approved by the National Development and Reform Commission and EB in 2007, and the buyer is a carbon asset management company from Sweden. Negotiations between the two sides began in the second half of 2006 and ended in March 2007. According to the agreement, by 20 12, Hangang will earn a net profit of about 200 million yuan by selling carbon dioxide emission reduction targets to the company.
"Preparing the design documents for the development project for the buyer is the most important link and the key factor for the successful registration of CDM projects." The staff of the Propaganda Department of Hangang said.
After signing a letter of intent with the CDM office in Hebei Province to develop CDM projects, Hangang held several training courses on registration procedures. In the following time, the project development unit and Hangang have done a lot of work to realize CDM project registration. These tasks include collecting a lot of data and project information, such as project-related approval documents, feasibility reports, environmental impact assessment reports, field research data and consultations with stakeholders. Select the method that is most suitable for the project; Determine the accounting period of emission reduction generated by the project and explain how the project can promote the sustainable development of the host country; Contact foreign buyers; Find a suitable third party to demonstrate the project qualification; Report to the National Development and Reform Commission for approval; Submit it to EB for approval.
The completion of this complicated CDM project registration is equivalent to the success of carbon trading. "Looking for a buyer and talking about the price also happened during the whole registration process. Therefore, from the perspective of business operations, the most difficult step is how to register successfully. " The staff of Handan Iron and Steel said.
China still lacks a good intermediary.
China's 11th Five-Year Plan clearly states that by 20 10, the energy consumption per unit of GDP will be reduced by 20% compared with 2005, and the total discharge of major pollutants will be reduced by 10%. In the process of striving to achieve this goal, a large number of projects will be developed into CDM projects by vigorously popularizing energy-saving and emission-reduction technologies and striving to improve resource utilization efficiency.
However, not all enterprises are as lucky as Hangang and Fujian Zhangpu Liu Ao Wind Power CDM Project. For enterprises that can't find buyers, they are more inclined to provide help in the following aspects. "From these' hope to help' contents put forward by enterprises, we also see the positive factors that China still lacks in developing CDM projects." Cheng Guang said.
First of all, the understanding of CDM is not in place, and there is a lack of necessary financial support. CDM entered China with the rise of the international carbon trading market. Its spread time in China is limited, and many domestic enterprises have not realized the huge business opportunities it contains. At the same time, due to unfamiliarity with the value, operation mode, project development and trading rules of CDM, except for a few commercial banks such as Industrial Bank (39.33, -0.7 1,-1.77%), other financial institutions seldom pay attention to CDM.
Secondly, the development time of CDM project is long and there are many risk factors. Compared with general investment projects, CDM projects need to go through more complicated approval procedures, which leads to a longer development cycle and an increase in transaction costs. In addition, the development of clean development mechanism projects involves many risk factors. Policy risks come from changes in international emission reduction policies, such as whether China will undertake greenhouse gas emission reduction obligations after 20 12, which determines the validity of the contract after 20 12; Project risks are mainly engineering construction risks, such as whether the project is completed and put into production on schedule and whether resources can be generated as expected. In the project operation stage, there is still the risk of monitoring or verification, so the project income is uncertain, which will also affect the financial service support of financial institutions.
Third, the intermediary market is underdeveloped. According to the statistics of the United Nations Development Programme, the carbon dioxide emission reduction provided by China now accounts for about 1/3 of the global market. It is estimated that by 2065,438+02, China will account for 465,438+0% of all emission targets issued by the United Nations.
Cheng Guang said, "This means that in the next few years, China will need a considerable number of intermediaries like Beijing Carbon Technology Co., Ltd., but at present, the number of such institutions is generally too small, and most of them are in the initial stage, so it is difficult to develop or digest a large number of CDM projects. In foreign countries, the evaluation of CDM projects and the purchase of emission rights are mostly completed by intermediaries. "
In addition, there is a lack of professional technical consulting system to help financial institutions analyze, evaluate and avoid project risks and transaction risks. Zhang Jianli, who has participated in the third-party certification of many domestic enterprises, said that carbon emission reduction under CDM mechanism is a virtual commodity with strict trading rules and complicated development procedures. Sales contracts involve overseas customers, and the contract period is very long, so it is difficult for non-professional organizations to develop and implement such projects.