China Petroleum & Chemical Corporation (HKG: 0386, “Sinopec”) has successfully closed the first bulk agreement transaction of China’s national carbon market on July 21, purchasing 100,000 tons of carbon emission quota from China Resources Group. Per the official transaction data disclosed by the Shanghai Environment and Energy Exchange (SEEE), it was the first bulk agreement transaction since the official launch of China’s national carbon market and the only bulk agreement transaction on the day.
A total of 17 Sinopec’s subsidiaries have their self-supply power plants included in the national carbon market, among which four companies, namely Sinopec Shengli Oilfield, Sinopec Maoming Petrochemical, Sinopec Shanghai Petrochemical and ZTHC Energy, participated in the first day of carbon trading. Sinopec’s carbon trading business is operated by its wholly-owned subsidiary China International United Petroleum & Chemicals (UNIPEC) as the main body of operation, which uniformly conducts transactions of companies in the Sinopec system in the national carbon market.
Sinopec is actively participating in the establishment of pilot carbon markets and China’s national carbon market, carried out system-wide carbon emissions inspections and established a carbon emissions data accounting system in 2012, and initiated the construction of a carbon asset management information system in 2015 to effectively improve the efficiency of carbon emissions accounting and data accuracy. Sinopec’s pilot companies have all fulfilled their carbon quota compliance tasks in full, and accumulated extensive experience for entering the national carbon market.
Sinopec is unswervingly working towards the goal of net zero. The energy and chemical industry is a key area of work for China to reach peak carbon emissions and build the carbon market. In 2020, Sinopec proposed building a world-leading clean energy chemical company, and for the first time, “cleanliness” was incorporated into the company’s vision and goals.
The company is constructing an industrial layout of “one foundation, two wings and three news” with significant efforts, laying a solid basis with energy resources, strengthening the “two wings” of improving clean oil quality and modern industrial development, and expanding the “three news” – exploring new energy, new material and new economy.
As China proposes to reach peak carbon emissions in 2030 and achieve carbon neutrality by 2060, Sinopec is accelerating its construction of a clean, low-carbon energy supply system, increasing industrial and energy structure adjustments and continuing the reduction of greenhouse gas emissions. Sinopec will reduce the annual methane emission intensity by 50 percent by 2025, while developing carbon-neutral forests, carbon-neutral gas stations and other distinctive models to achieve carbon neutrality ahead of China’s target and contribute to making new contributions in tackling global climate change.
The carbon market is a market where the emission rights of carbon dioxide and other greenhouses gases are traded as a commodity in order to achieve the overall goal of controlling greenhouse gas emissions. It adopts market mechanisms to control and reduce emissions and promote economic development, and is an important institutional innovation of green and low-carbon transformation.
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