Recently, contracts for the first batch of transactions in Tianjin Energy Efficiency Market were signed. 3 heating suppliers including Tianjin TEDA Jinlian Thermal Power Co., Ltd. sold a carbon allowance of 4,500 tons of standard coal, formed in this heating season, to Russian Gazprom Marketing & Trading (GM&T) and Citigroup’s Global Markets Ltd. respectively.
Tianjin Energy Efficiency Market, China’s first independently-developed emissions trading system based on compulsory energy efficiency target, aims to improve energy efficiency, reduce the intensity of carbon emission through the mode of “compulsory control and trading”. It is learned that, the energy saved in recently-concluded transactions amounts to 11,500 tons of carbon equivalent, and the knock down price is RMB 50 Yuan per ton.
In accordance with the energy saving standard for residential housing promulgated by the State Council, the amount of energy saved/carbon equivalent in the first batch of transactions in Tianjin Energy Efficiency Market is calculated with energy consumption of the heat supply for per unit of area as the measure for residential housing energy consumption. The heating suppliers’ income has been increased via emissions trading to compensate their costs in implementing heat supply metering.
Tianjin Energy Efficiency Market is jointly developed, under the organization of Tianjin Municipal Government, by Tianjin Urban-Rural Construction and Transportation Commission, Tianjin Municipal Heat Supply Office, Tianjin Climate Exchange and Arreon New Energy Co., etc.
According to reports, building energy efficiency trading is the 4th category of product launched by Tianjin Climate Exchange in succession to carbon dioxide, carbon neutral and contract energy management.