205Exactly one year ago, on July 16, 2021, the national carbon emission allowance trading system was officially launched. Unfortunately, the transportation sector, a major source of carbon emissions, was not included.
Currently, the main carbon reduction trading system in the automotive industry is the dual credit system. At the beginning of 2021, Zhu Huaron, chairman of Changan Automobile, publicly stated that Changan Automobile's profit per vehicle decreased by about 4,000 yuan in 2020 due to the dual credit policy. The dual credit policy directly impacts the profits of automakers, while the pressure on them to reduce emissions remains high.
Before the dual credit policy is transformed into a carbon trading mechanism, does the transportation sector have a clear implementation route for achieving carbon neutrality to alleviate the credit pressure on automakers and cover the costs of emission reduction?
Carbon Incentive Programs might offer a new opportunity.
Simply put, Carbon Incentive Programs allow individuals to earn carbon credits through low-carbon travel methods, which can be used as personal assets for carbon trading or converted into other social benefits.
Under the Carbon Incentive Program, verified voluntary emission reductions can enter the carbon market for trading, serving as an effective supplement to the carbon market.
On September 4, 2021, the first comprehensive green travel carbon incentive reduction transaction was completed nationwide. The transaction parties were Gaode Map and Beijing Municipal Road and Bridge Construction Group Co., Ltd., who signed a deal for 15,000 tons of carbon reduction.
These carbon reduction volumes were calculated using various methodologies after citizens used map apps to navigate public transportation, such as buses and subways. After the trip, the map providers aggregated the carbon reduction volumes and submitted them to the regulatory authorities for review, followed by trading, with all proceeds returned to the users.
Currently, there is no systematic Carbon Incentive Program for individual users in the automotive industry. Taking the "Beijing Passenger Vehicle (Oil-to-Electric) Travel Carbon Reduction Methodology (Trial Version)" Carbon Incentive Program as an example, automakers can aggregate the carbon reduction volumes generated by users purchasing electric vehicles with oil vehicle quotas and using them for travel, then trade these aggregated carbon reduction volumes in the carbon market to obtain corresponding carbon benefits.
What is the operational mechanism of the Carbon Incentive Program? What paths and methods can automakers use to participate in the establishment of the Carbon Incentive Program? What is the value of user-generated carbon reduction volumes in Carbon Incentive Projects, and how can they empower corporate sustainable development? How do established Carbon Incentive Programs in the travel sector operate, and what opportunities exist to amplify their value?
This issue of "Online 502" is co-organized by Huxiu and the Beijing Institute of Transportation Development, with support from Carbonstop, focusing on the theme "How Carbon Incentive Programs Empower Automakers." The event invites experts in the carbon field, automakers, and financial institution experts to share insights on the top-level design of Carbon Incentive Programs and the design of financial products, along with case studies and the value they bring to companies, aiming to enhance the awareness and application capabilities of automakers and relevant stakeholders regarding Carbon Incentive Programs.
Fu Chenjie, Director of Product Operations at Carbonstop, will join as a special guest to discuss the challenges and opportunities of automaker carbon management projects under the Carbon Incentive Program, sharing insights on the path to low-carbon transformation in the automotive industry.
Want to learn about the benefits automakers can find in Carbon Incentive Programs under the "Dual Carbon" trend? Scan the code to register and join us for this episode of "Online 502."
