Sinopec Shanghai completes its first delivery of carbon trading swap

On June 21, Sinopec Shanghai Petrochemical Co., Ltd. (Sinopec Shanghai) completed the first delivery of carbon allowance and CCER swap with an energy company in Hangzhou via the platform of Shanghai Environment and Energy Exchange. The delivery brought Sinopec Shanghai a profit of 1.3 million yuan and a new channel for energy saving and efficiency increasing.

On June 21, Sinopec Shanghai Petrochemical Co., Ltd. (Sinopec Shanghai) completed the first delivery of carbon allowance and CCER swap with an energy company in Hangzhou via the platform of Shanghai Environment and Energy Exchange.

The delivery brought Sinopec Shanghai a profit of 1.3 million yuan and a new channel for energy saving and efficiency increasing.

In recent years, Sinopec Shanghai has been actively seeking for potential buyers as there is a large balance of code SHEA14 (a variety of carbon product), and from July 2014 to June 2015, successfully sold 116, 000 tons of SHEA14, with a profit of 2.53 million yuan.

Considering the redundant balance of SHEA14 and the risk of invalidity of the remaining quotas after the pilot period, Sinopec Shanghai actively participates in the CCER trading to further optimize its carbon asset portfolio.

CCER, a voluntary reduction method certified by China, can be used to offset some carbon emissions during the compliance period, not only to reduce the company’s compliance costs but also bringing certain benefits and promoting low-carbon development of enterprises. As a result, CCER has become the most popular product in Shanghai’s carbon market.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/05/sinopec-shanghai-completes-its-first-delivery-of-carbon-trading-swap/.

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