NDRC Issued Internal Draft Allowance Allocation Plans for Three Sectors

09 May 2017 – During a closed-door workshop in Chengdu, the NDRC presented draft allowance allocation plans for three sectors; power generation, cement production and aluminum electrolysis. According to these plans, benchmarking will be the main method of allocation.
Power generation
Total allocation for the power generation sector is calculated as follows:
Total allocation = total electricity allocation + total heat allocation
Total electricity allocation = Electricity output x Benchmark 1 x Correction factor of cooling method x Heat correction factor x Fuel calorific value correction factor
There are eleven benchmarks used in the power generation sector, depending on the capacity of the installations and the fuel type of the power plant.
In the initial phase of the upcoming national ETS, power producers will first receive 70% of their allocation based on production data of the year 2015. The remaining 30% will be withhold until power producers have handed in verified emission and production data for each year.
Cement and electrolytic aluminum manufacturing
For the cement and electrolytic aluminum manufacturing sectors, the total allocation is calculated as follows:
Total allocation = cement clinker / aluminum outputs x sector benchmark
In the initial phase of the upcoming national ETS, the allocation will amount to 50% of the total power production of the year 2015. There will be ex-post adjustments to the allocation based on the actual production data.