33201. China Launches Its First Automotive Industry Carbon Disclosure Platform
Recently, China's first automotive industry carbon disclosure platform was launched in Beijing. This is also the world's first platform to disclose carbon footprint information across the entire automotive supply chain. The platform covers carbon emission data for over 5,000 passenger car models, as well as components and automotive materials, including over 10 pieces of information such as carbon footprint, carbon reduction volume, and carbon labels.
The launch of this platform will boost companies' motivation for carbon reduction, helping to address the prominent issues in the current automotive industry, such as weak awareness of carbon reduction, weak methods of carbon accounting, weak carbon accounting data, and weak industrial chain coordination. Meanwhile, by disclosing carbon footprint information and promoting the use of carbon labels, consumers can more clearly identify low-carbon vehicles, enhancing public recognition and support for low-carbon products.
02. China's First Blue Carbon Auction Listed, Starting Bid at 30 Yuan/Ton
On February 13, the Ningbo Public Resources Trading Network released the Blue Carbon Auction Announcement, stating that the carbon sequestration volume of Xihu Port fisheries for one year, totaling approximately 2,340.1 tons, would be auctioned off. The auction will take place on February 28, with a starting bid of 30 yuan per ton and a deposit of 30,000 yuan.
Blue carbon, also known as blue carbon sink or marine carbon sink, was first proposed in 2009 by international organizations such as the United Nations Environment Programme (UNEP). It refers to the process, activities, and mechanisms of using ocean activities and marine organisms to absorb atmospheric CO2 and store it in the ocean.
China's blue carbon market began to take shape in recent years. In January last year, six departments, including the Ministry of Ecology and Environment, jointly issued the 14th Five-Year Plan for Marine Ecological and Environmental Protection, which called for monitoring and assessing marine carbon sources and sinks and effectively leveraging the role of the ocean in carbon fixation. Coastal provinces and cities such as Fujian, Guangdong, Hainan, Shanghai, Zhejiang, and Shandong have also successively formulated mid-to-long-term development plans and action plans centered around blue carbon.
03. Meeting of the Presidency of the Convention on Biological Diversity Held
On February 13, Huang Runqiu, Minister of Ecology and Environment and President of the 15th Conference of the Parties (COP15) to the Convention on Biological Diversity, chaired a video conference of the Presidency of the COP15. The meeting discussed topics such as the terms of office for members of the Presidency and other officials, arrangements for inter-sessional meetings over the next two years, the agenda for Presidency meetings, International Day for Biological Diversity 2023, trust fund and personnel situations.
Huang Runqiu introduced the plans and arrangements for the Presidency's work over the next two years and expressed hopes for advancing the outcomes of COP15 and the goals of the Kunming-Montreal Global Biodiversity Framework (KMGBF). Over the next two years, China will continue to serve as the Presidency, playing a leading role with the support of the Secretariat and members of the Presidency, coordinating efforts to implement the KMGBF.
04. Central Document No. 1 for 2023 Released, Continues to Promote Green Agricultural Development
On February 13, the central document No. 1 for 2023, titled Opinions of the CPC Central Committee and the State Council on Priorities for Promoting Rural Revitalization in 2023, was released. For two consecutive years, the central document No. 1 has emphasized promoting green agricultural development and building national pilot zones for green agricultural development.
In 2022, it was proposed to strengthen the comprehensive management of agricultural non-point source pollution, deepen the reduction of agricultural inputs, enhance the utilization of livestock manure, promote scientific use and recycling of agricultural films, and support the comprehensive utilization of straw.
For 2023, new proposals include accelerating the application and promotion of technologies for reducing and increasing efficiency of agricultural inputs, promoting water and fertilizer integration, establishing and improving systems for collecting, utilizing, and handling agricultural waste such as straw, agricultural films, pesticide packaging waste, and livestock manure, and proposing to strengthen the prevention and control of heavy metal pollution sources such as cadmium in farmland soil, reinforce the safe utilization and risk management of contaminated farmland, establish a monitoring system for agricultural ecological and environmental protection, and issue regulations on ecological protection compensation.
This year, the document also introduces the content of "regulation of release activities" for the first time, aiming to severely crack down on illegal introductions of alien species, implement actions to combat invasive species with significant impacts, and strengthen the regulation and management of "exotic pet" transactions and release activities.
05. Goodbye to Fossil Fuel Vehicles: European Parliament Approves Proposal to Ban Sale of Combustion Engine Vehicles by 2035
On February 14, the European Parliament approved the Agreement on Zero Emissions for New Cars and Small Vans in Europe by 2035 reached by the European Commission and the European Council. According to the agreement, starting in 2035, the sale of new fossil fuel cars and small vans will be banned in all 27 EU member states.
In recent years, major automobile manufacturers have shifted their focus to new energy vehicles.
- Ford Motor Company plans to transform all its European models to pure electric vehicles by 2035.
- Audi announced it will stop developing gasoline or diesel engines and will fully shift to electric vehicle (EV) development and production in 10 to 15 years.
- British luxury brand Jaguar announced it will become a pure electric vehicle brand by 2025.
- Aston Martin will start producing EVs from 2025.
- Swedish luxury brand Volvo announced it will achieve full electrification by 2030, selling only EVs at that time.
- Honda plans to increase the proportion of EVs and other models sold in Europe to two-thirds by 2025.
- General Motors plans to produce only EVs by 2035, ceasing the production of diesel and gasoline engine cars, trucks, and SUVs.
06. McDonald's Introduces Plant-Based McPlant Nuggets, China's Plant-Based Meat Market to Reach $13 Billion
Recently, McDonald's announced that it will launch plant-based McPlant Nuggets next week, with Germany being the first market to trial the product. Previously, McDonald's had already introduced plant-based burgers and other products. In 2021, McDonald's made its first attempt with plant-based menu items in China.
The plant-based McPlant Nuggets, made from peas, corn, and wheat coated in tempura batter, are the second product co-developed by McDonald's and plant-based meat producer Beyond Meat. Since 2021, McDonald's has been selling the McPlant plant-based burger, also developed in collaboration with Beyond Meat.
A research report by Sichuan Securities shows that the plant-based meat market, as a new market, is developing rapidly. In 2019, the global market size for plant-based meat was approximately $12.1 billion, and it is expected to grow at a compound annual growth rate of 15.0%, reaching $27.9 billion by 2025. China's plant-based meat market is still in its early stages, with a market size of 7 billion yuan in 2019, up 22.6% year-over-year. By 2023, China's plant-based meat market is projected to reach $13 billion, potentially accounting for half of the global market.
07. Oil-Rich Nation to Enter the Car Manufacturing Industry: 'Tesla Killer' to Build Factory in Saudi Arabia
According to the Financial Times, U.S. electric vehicle startup Lucid, known as the "Tesla killer," has signed an agreement to produce 150,000 electric vehicles annually in Saudi Arabia by 2025. Saudi Arabia is leveraging Lucid Motors to build a domestic electric vehicle manufacturing hub.
Over the past year, due to the conflict between Russia and Ukraine pushing oil prices to record highs, Saudi Arabia has reaped huge profits from oil sales. At the same time, Saudi Arabia is attempting to reduce its heavy reliance on oil revenue to achieve its "Vision 2030" goal of increasing non-oil exports to more than 50% of GDP.
To achieve this goal, Saudi Arabia has been promoting the development of its domestic electric vehicle manufacturing industry. In early November last year, Crown Prince Mohammed bin Salman announced that the Public Investment Fund (PIF) would join forces with Foxconn to establish a joint venture to launch Saudi Arabia's first electric vehicle brand, Ceer. With Lucid confirming its factory construction in Saudi Arabia, the country is moving closer to realizing its electric vehicle aspirations.
08. First ETF Tracking the CSI Green Power Index Launched in the Market
The first ETF tracking the CSI Green Power Index, the Forte CSI Green Power ETF (shortened to "Green Power 50 ETF"), started issuing shares on February 13, aiming to allow investors to share in the industry transformation dividends under the green power target. Green power refers to electricity generated from renewable energy sources such as wind, hydro, photovoltaic, and solar power.
The compilation of the CSI Green Power Index mainly selects listed companies in the fields of photovoltaic power generation, wind power, and hydropower, as well as companies in the thermal power and nuclear power industries involved in the green power sector, reflecting the overall performance of securities in the green power field. Forte Fund points out that from an industry distribution perspective, the CSI Green Power Index has a comprehensive coverage, and the combination of "thermal power + green power" possesses medium-to-long-term advantages.
09. European Parliament Further Approves CBAM (Carbon Tariff) Agreement!
On February 9, the European Parliament's Committee on Environment, Public Health, and Food Safety (ENVI) voted in favor of the EU's revised Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM), marking another step toward the formal adoption of the legislation.
The Carbon Border Adjustment Mechanism is a new mechanism to prevent carbon leakage as free allowances are phased out. According to the rules, any product imported into the EU customs territory whose production location carbon pricing (which could be carbon tax, carbon fee, or carbon price recognized under a carbon trading system) is lower than the EU ETS carbon price must purchase CBAM certificates to make up the difference, hence CBAM is also referred to as a "carbon tariff."
According to the agreement, the EU's Carbon Border Adjustment Mechanism will enter a transitional phase starting October 1, 2023, and will be fully implemented from January 1, 2026. During the initial transitional phase, importers will only need to submit reports on carbon emissions related to their goods without making any financial payments or adjustments. After the transitional period, importers will be required to declare the quantity of goods imported into the EU and the greenhouse gases they contain each year and surrender the corresponding number of CBAM certificates.
10. 2022 Environmental Internet Innovation Conference Held in Chengdu
Recently, the 2022 Environmental Internet Innovation Conference was held in Chengdu. The conference noted that in recent years, the informatization, efficiency, and intelligence levels in the environmental protection sector have steadily improved, and the practical applications of big data, cloud computing, artificial intelligence, and other internet technologies in the environmental protection field have become increasingly extensive and in-depth.
Additionally, the conference released 10 innovative cases in smart environmental protection, including Chengdu's AI-driven air pollution traceability, Luzhou's "Green Bud Points," Shenzhen Bao'an District's regional environmental assessment "smart site selection" service system, Tengzhou's smart environmental protection platform, Yan'an's environmental protection information management platform, a large enterprise group's smart environmental management platform supporting green and low-carbon high-quality development, Rongjiang New Area's smart environmental protection integrated management system, the Yangtze River Ecological Environmental Protection and Restoration Smart Decision-Making Platform V1.0, the Comprehensive Service Platform for Fujian Province's Carbon Market, and the Public Participation Platform for Hunan Province's Environmental Protection.
