Chemical companies are faced with dual risks in participating in CDM projects

With the attraction of the huge potential benefits of the Clean Development Mechanism (CDM) project, the enthusiasm of many chemical companies to participate in CDM projects has increased. A group of chemical companies have begun to benefit from CDM projects. However, at the energy conservation service industry training conference recently organized by the National Development and Reform Commission International Cooperation Center, industry experts reminded that the first commitment period of the “Kyoto Protocol” is coming to an end, and the hot CDM transaction is facing the dual risks of policy changes and difficulty in examination and approval. China's CDM applications have frequently been blocked. The crisis has begun and chemical companies must be cautious in participating in CDM projects.

According to Li Linyi, chief executive officer of Carbon Gold Business Management Consulting (Tianjin) Co., Ltd., CDM is a flexible compliance mechanism introduced in the Kyoto Protocol. The CDM allows Annex I countries (mainly developed countries) to invest in greenhouse gas emission reduction projects in non-Annex I countries (mainly developing countries), using the resulting certified emission reductions to partially fulfill their requirements in Kyoto. The Protocol's commitment to limit and reduce emissions. At present, China is the main supplier of CDM projects. The number of CDM projects approved by the Chinese government has reached 3,050. More than 900 CDM projects have been registered in the UN's Clean Development Mechanism Executive Council, ranking the first in the world.

As of June this year, in addition to the above 3,050 registered projects, another 2,600 projects represented by a wind energy project in Inner Mongolia, China, are in various stages of the approval process.

The buyers of carbon emission reduction in China mainly come from the European Union. At present, there are already Zhejiang Juhua Co., Ltd., Shandong Dongyue Chemical Co., Ltd., Jiangsu Changshu Sanaifu Zhongyu Chemical New Material Co., Ltd., and Zhejiang Dongyang Chemical Co., Ltd. Many chemical companies such as Linhai Limin Chemical Co., Ltd. in Zhejiang Province benefited from CDM projects. Recently, Tianji Group obtained more than RMB 10 million in revenue from the sale of nitrous oxide emission rights. China Pingmei Shenma Energy & Chemical Group Co., Ltd. Nylon Chemical Co., Ltd. The proceeds from the adipic acid CDM project will be transferred to the company's financial account.

According to Li Linzheng, the general process of domestic CDM project transactions is that companies, with the support of international buyers, confirm the project development qualifications, and then they are approved by the National Development and Reform Commission, certified by a third-party operating entity, and then to the United Nations EB ("United Nations Framework for Climate Change". The Executive Council of the Convention registers that the United Nations EB issues CERs (certified emission reductions) with equivalent certified emission reductions into the buyer's account. Li Linxuan told reporters: "Now that the time for the approval of the China Clean Development Mechanism Executive Council on Chinese projects has been extended, some renewable projects in China cannot be registered in time. This has become a problem facing more and more Chinese CDM projects."

According to Wang Qiang, the Policy Research Office of the International Cooperation Center of the National Development and Reform Commission, the EU stated that it only accepts projects that have been registered before the end of 2012, projects from least developed countries, or countries that have bilateral agreements with the European Union. But so far, there is no China on the list. This has also become the most important issue facing China's CDM projects.

Li Linxuan stated that with the expiration of the first commitment period of the "Kyoto Protocol" in 2012, the associated transition mechanism -- the future of CDM -- has become an issue that people are eagerly concerned about behind the blowout of CDM projects in China. After 2012, whether developing countries can continue to sell carbon reductions will depend entirely on the second phase of the Kyoto Protocol negotiations.

According to Chen Jie, manager of Langfang Jinsheng Energy Saving Technology Service Co., Ltd., from a broad perspective, any technology that is conducive to greenhouse gas emission reductions and greenhouse gas recovery or absorption can be used as a CDM project technology. China's project resources in this area are sufficient, but at the dawn of the 2012 deadline, the market needs to think “cold” in the “hot”.

The industry generally believes that the global CDM project is basically the buyer's market, and CDM projects of developing country companies have no bargaining power at all. Coupled with the impact of policy changes, many buyers of CDM projects take a wait-and-see attitude towards the market after 2012, and the expected earnings of Chinese companies may shrink.

Li Linzhen told reporters that among all CDM projects, HFCs account for half of the Chinese CDM projects. However, on November 25 last year, the European Commission issued a proposal calling for a total ban on the emission reduction of certain industrial gases for the EU-EU ETS (European Emissions Trading System) starting from January 2013. The specific industrial gas range banned by this proposal includes the trifluoromethane (HFC-23) decomposition project and the nitrous oxide emission reduction project in the production of oxalic acid. If the proposal is finally passed, it will seriously inflict China's development of CDM projects.

This is also a reminder to the development of China's CDM project - China's CDM project must be transformed. For example, it turned to the development of new technologies such as rural biogas projects. This will not only help Chinese companies continue to benefit from CDM, but will also stimulate research and development of related energy-saving and environmental protection technologies in China. Liu Lancui, a postdoctoral fellow of the Science and Technology Policy and Management Science Research Institute of the Chinese Academy of Sciences, and Wu Gang of the Center for Forecasting Science of the Chinese Academy of Sciences, said at the meeting: “The implementation of such projects as HFC-23 can only bring benefits in terms of emission reductions, but cannot bring about advanced emission reductions. The role of technology in promoting sustainable development in China is also relatively small. Therefore, although the problems that the CDM is now facing are challenges in the growth process, it is also an opportunity for sound development."

Household Sanitary Ware DFC system

Wood safety box Integrated stove Smart toilet lid TV stand are common household items. Their grinding processing at present are manual, the force imposing on the Grinder is not consistent, most are based on technician experience or technique. Our Force Control System can flexible control the force imposing on the grinder, quick response to the surface changing, and instant adjusting the force on the grinder.

wood DFC system, safety box DFC system, Integrated stove DFC system, Smart toilet lid DFC system, TV stand DFC system

DARU Technology (Suzhou) Co., Ltd. , https://www.szforcecontrolsystem.com