Abstract
The “cap-and-trade”-based ETS follows two principles for free allowance allocation: “Grandfathering” and “Benchmarking”, which apply to different conditions and objects (Carbon Trading Task Group of CAS Guangzhou Institute of Energy Conversion, Q and A about Design and Practice of Guangdong Emissions Trading Scheme. China Environmental Science Press, 2014, [1]). Grandfathering is a free allocation based on average historical emissions of covered enterprises. It is applicable to the companies (e.g., in chemical and electronics sectors) that have complex process, multiple categories of technologies, and a great variety of products. And, it costs much to gather their emission data. In case of Benchmarking Allocation, the allowances are the production/value of a working procedure or a product, which is multiplied by unit emissions.
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Notes
- 1.
With the exception of Guangdong ETS that also adopts allowance auction, the other six pilot carbon markets mainly rely on free allocation.
- 2.
Resources comprehensive utilization generating units are those mainly rely on coal gangue and oil shale as fuel.
References
Carbon Trading Task Group of CAS Guangzhou Institute of Energy Conversion, Q&A about Design and Practice of Guangdong Emissions Trading Scheme, China Environmental Science Press, 2014.
JIANG Xiaochuan, Study on the Initial Distribution System of Carbon Emissions in China - Taking the Allocation Method as the Center, Jiangxi University of Finance and Economics, 2012.
Guangdong Province Development and Reform Commission, the First Allocation and Work Plan for Carbon Emission Permits [EB/OL]. http://zwgk.gd.gov.cn/006939756/201401/t20140123_463411.html.
Guangdong Province Development and Reform Commission, the Distribution Plan of Guangdong’s Carbon Emission Allowance in 2014 [EB/OL]. http://zwgk.gd.gov.cn/006939756/201504/t20150430_578928.html?keywords=.
Guangdong Province Development and Reform Commission, the Distribution Plan of Guangdong’s Carbon Emission Allowance in 2015 [EB/OL] http://www.GDDRC.gov.cn/zwgk/tzgg/zxtz/201507/t20150713_322106.html.
LUO Yuejun, LUO Zhigang, ZHAO Daiqing, Mechanism Study on Carbon Emission Trading of Power Sector [J]. Environmental Science & Technology, 2014, 37 (6N): 329–333.
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© 2019 China Environment Publishing Group Co., Ltd. and Springer Nature Singapore Pte Ltd.
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Zhao, D., Wang, W., Luo, Z. (2019). Guangdong Pilot ETS Allowances Allocation Mechanism. In: A Brief Overview of China’s ETS Pilots. Springer, Singapore. https://doi.org/10.1007/978-981-13-1888-7_6
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DOI: https://doi.org/10.1007/978-981-13-1888-7_6
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