Research on the Demarcation of Provincial Initial Emission Quotas and the Emissions Trading

Abstract

The distribution of China's energy resources and consumption is trending to reverse. Inter-provincial cooperation from of energy transforms form transporting coal to building coal-fired power, electricity transmission and natural gas transmission. That led to the increase in total emissions and environmental pressure in energy-rich province domain, which bring pressure to completion of regional emission reduction targets. This article propose to study and explore the allocation of emission rights, effective exchange of emission among provinces. It has not only the theoretical value, but also practical significance. On one hand, it is based on quantify emissions accounting standards and methods to research quantify emissions accounting standards and methods to provide a quantitative basis for project-based market. On the other hand, it is the goal of scientific rationality to configure the provincial domain initial emission rights. It is scientifically setting emissions baselines according to the provincial domain resource endowment, economic level, environmental capacity, capital and technology, population quality, development potential and space differentiation characteristics. So that it can provide a reasonable basis for allowancebased market. It promotes energy conservation and carbon reduction, in order to jointly cope with climate change while promoting the energy cooperation among provinces. 1 The phenomenon of the the energy and emission source reverse migration It is not balanced between the resources owned and the economic development in China. 76% coal existed in the north and northwest, but the distribution of consumption is in reverse. Over 70% consumption is distributed in the developed southeast coastal area. Recently, because of the ecological requirements of the developed southeast coastal area and the limitation of the environment capability, the transformation of energy cooperation across provinces is promoted from transporting the coal to transporting the SNG in order to realize the power transmission to coal mine and coal-fired power plant. It formed the positive output of clean energy and the backward transfer of pollution sources. ( see Picture 1) In the “Thirteen Five” Plan, the government will designate the provinces total energy consumption red line, especially the total coal consumption because of strengthening the haze pollution and climate change. It will put the three emissions targets of CO2, SO2, NOx directly linked to regional development assessment. To this end, problems of quantify accounting, horizontal compensation, cross transactions of the emission rights cause national and energy output provinces’ attention in the process of inter-provincial energy cooperation. Which includes science and rationality of provinces initial configuration of emission rights. And market exchange and trading emission rights issues have also been academic attention. Therefore, it is a new topic that fair allocation of emission rights and effective exchange of emission rights inter-provincial cooperation. It has not only the theoretical value, but also practical significance. Picture1.The positive output of clean energy and the backward transfer of pollution sources. 2 Quantitative assessment and account -ing of the Emission source reverse migration in the cooperation projects between two types of energies It is well known that the traditional way of energy cooperation across provinces including the arrangement of thermal power plants in energy input province and the contract with the energy-rich province to ensure the energy(electricity) supply within this area. 2.1 The accounting of main emissions from the pithead coal-fired power plants project Because the pithead coal-fired power plants are set up at the edge of the coal base, they can supply the electricity to coastal power grid point to point, in order to reduce the coal transportation and release the Energy output Prov‐ ince Coal‐fired