MEE organizes Nationwide Training Series on National ETS with Focus on Allocation

25 September 2019 – The MEE published the “Notice for Trainings on National ETS for Power Sector of Allowance Allocation Trial Calculation and Administrative Management” (环办培训函〔2019〕132号). According to the notice, eight sessions consisting of 17 trainings will be held during the period of 22 October to 8 December in multiple cities in China. The trainings target participants who are in charge of carbon emission management for Chinese power generation companies, e.g. Huaneng, Datang, Huadian, State Energy Investment, State Power, Guangdong Energy Group, Shenneng, Shenzhen Energy as well as provincial authorities and supporting agencies.
The trainings will cover the following topics: (I) Policy introduction of national ETS construction and climate change; (II) ETS Administration for local authorities on data reporting, allowance allocation, trading management, offsetting and compliance; (III) ETS tasks for companies, i.e. account opening for the registry system and trading system, CO2 emissions data reporting, offsetting and compliance, including allowance trial calculation and trading simulation.
The trainings will be organized by the Department of Climate Change of MEE with support of NCSC, Tsinghua University, China Electricity Council (CEC), China Quality Certification Center (CQC), China Environmental United Certification Center (CEC). The Sino-German project “Capacity Building for ETS in China”, the EU-China ETS Dialogue project, the GEF/UNDP Project “Enabling China to Prepare Its Third National Communication (TNC)” and World Bank will support the trainings financially.
Together with the notification for the trainings, the MEE also published two drafts for the “Trial version of national ETS allowance allocation plan for power generation sector” (below referred to as “the plan”). It requests the local climate change authorities to organize trial calculations with the companies in their jurisdiction and submit the results to MEE by 6 December. Comments by the public can be summited until 14 October.
Summary of the plan:
• The plan applies for power generator units and co-generation units for heat and power.
• Companies will be pre-allocated allowances based on ‘70% of their 2018 production levels multiplied by a benchmark factor’. The rest of their permits will be distributed based on their actual 2019 production data.
• The plan includes two different proposals. The first proposal uses two categories for coal: conventional coal and coal gangue and coal water slurry (including CFBC). The corresponding benchmarks are set at 1.015 tCO2/MWh and 1.120 tCO2/MWh respectively. The second proposal differentiates between conventional coal fired plants with more or less than 300 MW installed capacity and the benchmarks are set at 0.827 tCO2/MWh and 0.879 tCO2/MWh. The benchmark for gas is set at 0.382 tCO2/MWh and benchmark for heat generation is set at 0.135 tCO2/GJ in both proposals. The total allocation for each company is calculated as the sum of allocation for electricity production and heat production.
• Gas fired power plants will only have a soft compliance obligation. In case that their free allocation is insufficient they only need to return their free allocation and do not have to purchase additional allowances, while excess allowances can be sold.