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It is understood that the European Commission has publicly announced its proposal that it will reject acceptance of carbon credits from hydrofluorocarbons and nitrous oxide CDM projects from January 1, 2013. If this proposal is finally passed in the EU, rejected HFCs and nitrous oxide CDM projects will not be able to enter the third phase of the EU market for trading. According to industry analysts, the EU has always wanted to play the role of a leader in the global response to climate change, and its policy orientation has a strong influence in the world. It does not rule out the possibility that other developed countries will follow suit to formulate similar carbon trading restrictions. These policy changes will have an adverse impact on China's two types of CDM projects. Chinese enterprises and related organizations should pay close attention to the EU's policy on CDM and respond well.
It is understood that in the third phase of the EU carbon emission reduction system, other adjustments have been made, and more stringent emission reduction targets and emission reduction methods have been set up to increase the EU companies' emission reduction drive: First, to include more industries and species. Carbon emissions from the greenhouse gases and aviation industry are also included. Second, more stringent emission and emission quotas are set. The total emission limits will be directly set at the EU level. The method of determining emission quotas will be the second average year. The total amount of emission allowances is the baseline, and then declining at a linear rate of 1.74% per year. Third, the distribution of emission quotas will be dominated by auctions, supplemented by free distribution, and the EU's allocated emission quotas will be based on the emission quotas of the past per unit of production value of various industries. Rather than its historical emissions.
EU may refuse to deal with some CDM projects
From Copenhagen to Cancun, climate change issues have become the focus of global attention. As the world's largest carbon trading market, the EU carbon emission reduction system will make improvements to the third phase (2013-2020) of its trading system in the near future, and may reject the transaction of some CDM projects. This change may affect the entry of some of China's CDM projects into the EU market.