#1CEEX 广碳所 Green Finance Progress in CEEX China Emissions Exchange (CEEX) C F EXCUSING (CEEX)#201 Outline Background of CEEX 02 Carbon Finance 03 Green Finance 04 CEEX New Energy Assets Investment, Financing and Trade 05 Green Industry Investment Fund 广碳所 广州碳排放权交易所#31. Background of CEEX TRUCKOLONG OF CERY In 2011, the NDRC launched carbon emission trading pilots in seven provinces and cities, including Guangdong, Hubei, Shanghai, Tianjin, Shenzhen, Beijing and Chongqing. Emissions Trading Platform • In 2012, Guangdong Provincial Government designated CEEX as the only trading platform of carbon emission trading pilot in Guangdong. In 2013, CEEX became the first batch of China Certified Emission Reduction (CCER) trading institution certified by the NDRC. Joint Construction by Guangdong Province and Guangzhou City . . Founded on September 11, 2012. 100% owned by China Canton Exchange Group Ltd. ☐ Service for Ecological Civilization Construction ☐ Service for Green Finance System Construction ☐ Environment and Energy Trading Institution ☐ Green Finance Service Institution CEEX 广东省人民政府 关于 广州市人 你市 府报〔20 二、 用,促进 完成的重 发展改革 易工作的 中华人民共和国国家发展和改革委员会 发改办气候[2013]92号 国家发展改革委办公厅关于同意广州碳排放权 交易所有限公司为自愿减排交易机构备案的函 广东省发展改革委: 你委《广东省发展改革委关于广州碳排放权交易所申请溫室 气体自愿减排交易机构备案申请的请示》(粤发改资[2012]880 号)收悉。 经审核,广州碳排放权交易所有限公司符合《溫室气体自愿 減排交易管理暂行办法》第二十五条规定的交易机构备案条件, 现予以备案。 特此函告。 国家发展證 庫委员 国家发展改革委办公厅 2013年7月8#4广州碳排放权交易所 CCER Trading Platform Guangdong Emission Allowances Trading Platform Guangdong Provincial Pu Hui Certified Emission Reduction (PHCER) Trading Platform CEEX Green Finance Service Platform China New Energy Assets Investment and Financing Platform National Carbon Market Capacity Building (Guangdong) Center Guangzhou Green Industry Investment Fund Management Co., Ltd. CEEX Qualification of CEEX COU O CETY#52. Carbon Finance CILDOU LIUSUCE Trade matching Financing Guangdong Carbon Emission Allowances Trading China Certified Emission Reduction Hedging Risk (CCER) Management CEEX Mortgage Finance of Carbon Emission Allowances Repurchase of Carbon Emission Allowances Forward Trading of Carbon Emission Allowances Custody of Carbon Emission Allowances 广碳所 5 广州碳排放权交易所#6Trading products in Carbon Markets ILSCIVO DLONG COLDOU AT S L K G C 2 Spot CEEX Non-standardized Derivatives • • • Primary Market Spot auctions □ Guangdong Allowances (GDEA) □ Guangdong Provincial Pu Hui Certified Emission Reduction (PHCER) Secondary Market Spot □ Guangdong Allowances (GDEA) □ China Certified Emission Reduction (CCER) □ Guangdong Provincial Pu Hui Certified Emission Reduction (PHCER) Forwards □ Guangdong Allowances (GDEA) forwards □ China Certified Emission Reduction (CCER) forwards Primary auctions take place quarterly, according to CEEX's auction calendar. Continuous trading between 9:30 a.m.-11:30 a.m. and 1:30- 3:30 p.m. CST from Monday to Friday Clearing and settlement of trades are completed by CEEX. 广碳所 广州碳排放权交易所#7Guangdong Pilot ETS Market Development Casuago UOL FIR ATSIKEL NGAGIODIGUL Trading volume & carbon price 2013-2018 Volume (tCO2eq) 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2013 2014 2015 2016 2017 2018 primary market I secondary market Average price per tCO2 in RMB CEEX • • primary market price (annual average) secondary market price (annual average) The Guangdong pilot ETS has given rise to one of the most liquid emissions trading markets in China today, with an average daily volume of ~70 thousand tCO2eq being traded. The first 124 enterprises of power generation and captive power plant in Guangdong will be involved in national ETS, and the Guangdong pilot ETS will continue exist. China national ETS launched in Dec. 19th 2017, political reform path: - Three phases (2017-2020) to expand the scope of market coverage, CCER and other products would be included at the right time. ― CEEX will become potential agent for Chinese ETS and take share of the national exchange and registry. 广碳所 广州碳排放权交易所#8• ● Guangdong Pilot ETS Market CCER and PHCER Trading Casua DITS CCEK SU LUCEK ILSO CCER trading volumes and percentage in polots CEEX Trading volumes of PHCER Hubei, 6,198,116, 3.64% Shanghai, 77,037,652, 45.22% Sichuan, 7,098,893, Fujian, 4,812,650, 325,111, 21% 4.17% 2.82% Guangdong, 34,397,256, 20.19% Shenzhen, 15,764,780, 9.25% Tianjin, 2,357,827, 413,448,26% 1.38% Beijing, 22,704,123, 13.33% 528,549,33% 317,708, 20% Auction List selection Agreement transfer Initial transfer The Guangdong pilot ETS is the second largest CCER market in China, with about 34.40 million tons being traded. PHCER (voluntarily certified emission reduction generated by low-carbon behaviors in Guangdong) is Guangdong's distinctive trading products, has recorded a total transaction volume of PHCER equivalent to 1.58 million tons. 广州碳排放权交易所#9Cross-border Trading CLO22-DOLAGL ILsaIo CEEX The CEEX supports foreign investors participating in Guangdong carbon emission allowances trading in RMB. In January 2018, the first cross-border carbon emission allowances transaction in the Green Finance Reform and Innovation Pilot zone was settled (¥ 1.32 million). After that, Foreign institutional investors transacted carbon emission allowances for 200 thousands tons (¥2.74 million). 广州碳排放权交易所#10Forest Carbon Sequestration HOLLOW 26NOU Introduction CEEX The project of afforestation and reforestation can generate the carbon sequestration, which can be sold to the companies who want to offset their carbon emissions, and the obtained income can be used to repay the loans that was used to develop this project. Advantages Enlarge the forest area and increase the carbon sink reserve. Make a better use of forest resource asset. Motivate the society to participate the afforestation. In accordance with the concept "the lucid waters and lush mountains are invaluable assets" The CEEX has successfully conducted the research and trading of projects about the forest carbon sequestration. The forest carbon sequestration project in the pilot zone (Huadu District, Guangzhou) totally produced 13,319 tons PHCER, which generated 220,000 yuan benefits. 碳排放权交易所 省发改部门 12. 组织履约 9.批复省级碳普惠 减排量 ד 13. 获得碳 项目业主 8. 对碳普惠 11. 交易并 汇收益 项目及减排 进行登记 10.委托碳排放权交易所对碳 普惠减排量进行交易 量信息进行 终审 3. 依据相关 方法学开展 林业碳普惠 减排量的计 算 2.选择具备资质 的机构进行项目 开发 1. 自愿参 与碳普惠 制试点 7. 提交省发 5. 提出项目备案申请以 及碳普惠减排量申请 改部门审核 L 4.出具碳普 惠减排量核 证报告 k 6. 对碳普惠项目及减 排量信息进行初审 地市发改部门 开发机构 10 广州碳排放权交易所#11Mortgage Finance of Carbon Emission Allowances TATOLIOSOG LIUSUCG OI CSLDOU FI2210U VIOMSUCG2 Product Introduction CEEX* 0 Carbon emission allowances are used as collaterals for financing. 0 Use of loan funds: Carbon Emission Allowances Trading Energy Conservation and Emission Reduction for the Enterprise Advantages: ➤ Flexible use of funds: Enterprise -Buying allowances or carbon credits 1 Submitting -Energy Conservation and Emission Reduction for the Enterprise ➤ Simplification of the process of mortgage mortgage applications financing and repayment 4 Granting Funds 15 Repayment L Submitting applications | for releasing mortgage 7 CEEX 2 Bank 3 Issuing mortgage registration certificates Submitting relevant documents for releasing mortgage Guangdong DRC Submitting relevant mortgage documents for record 8 | Releasing the mortgage registration 广州碳排放权交易所#12Mortgage Finance of Carbon Emission Allowances TATOL JUSTICE OF CHILD Cases 9262 CEEX Financiers China Huadian New Amount Other Collaterals Financed guarantees (million yuan) energy Co., Ltd Carbon 1 3 (Guangzhou allowance University City) Junma (Sihui) Cement Carbon 2 26.15 Co., Ltd allowance Paper Corporation Carbon Insurance of carbon 3 Located in Huadu allowances + allowances 2 District, Guangzhou Fixed assets mortgage China Southern Carbon 4 Airlines allowance loans 0.6 Comments the first Carbon allowances mortgage finance online business in China the first Carbon allowances mortgage finance business for private-enterprise in China The first insurance business about the carbon allowances mortgage finance in China The first business about the carbon allowances mortgage finance in airlines industry in China 广州碳排放权交易所#13Product Introduction Buy-back of Carbon Emission Allowances: When the allowance holder in Guangdong Province (repo) sells the allowances to the buyer (reverse repo), they agree that the repo will buy back the same quantity of allowances from the reverse repo at an agreed price on a future date. Trading day Requirements Allowance Go Trading Account of Repo 1. Member of the CEEX, Repo/Trading Account of Reverse Repo Payments Mo except for individual ; Funds Allowances Reverse J Repo Repo 2. No any illegal activities specified by Guangdong NDRC and CEEX within 3 years; Investment Energy-saving and Buy-back day (i=1, 2 N) ...... Emission-reducing Allowance G Trading Other carbon financing activities 1 Transformation. Repo 3. Single pending order > Alleviating Fund pressure Trading Account of Repo/Trading Account of Reverse Repo Payments M 100,000 tons. 广州碳排放权交易所 G₁=G₁+G₂++GN Up to February 2019: 14.691 million tons carbon allowances (Cumulative Volume); 0.142 billion yuan (Cumulative Turnover ) Buy-back of Carbon Emission Allowances RO-DICK OI COLDOU FIOU VIOMSUCG2 CEEX#14Spot Forwards of Carbon Emission Permits 200 HOLMSL02 01 CSLDOU FOGLIIC? Product Introduction CEEX Spot forwards trading refers to the trading mode in which trading participants sign forward contracts and agree to conduct transactions on certain allowances or CCER at a certain time point in the future. 1. Signing contracts Advantages Avoid the risk of future price fluctuations Seller settlement and delivery delivery day, remanding of the 3. Tree trading days prior to the 2. Submitting the trading contracts to CEEX for record (the buyer and seller can voluntarily render margins/collaterals to CEEX) CEEX 4. Fund settlement 4. Allowance/CCER delivery Buyer 3.Tree trading days prior to the delivery day, remanding of the settlement and delivery 广碳所 Provide fixed income product and also be benefit for the derivatization of carbon financing product Future Trading (up to 13st February 2019) Carbon 356.79 emission quota Cumulative Volume (x 104 tons) CCER 27.78 Total 384.57 A total of 63 transactions The involved industries include: Power, Cement, Steel, Paper, and Airline. 广州碳排放权交易所#15Product Introduction Custody of Carbon Emission Allowances refers to the carbon asset management business in which Guangdong compliance companies and CEEX investment institutions (Principal) entrusts the self-owned allowance to CCER general members or broker members that are qualified for allowance custody as reviewed and recorded by CEEX (Custodian) for the latter's holding or transaction and agree on the custody aim. The allowances from principal will be transacted by custodian Principal Custodian Principal Advantages ● activate carbon assets; ● Improve the management level of carbon allowances Gain extra revenue 广州碳排放权交易所 Custodian Gain the carbon emission allowances with low cost Gain profits from allowance trading Custody of Carbon Emission Allowances OL CHILDOU FW2210U VUOMSUGG Engagement of custody target CEEX#161. Submitting qualification application for General members custody business and signing letter of commitment on business. or broker members (Custodian) Compliance companies or investment institutions (Principal) General members or broker members (Custodian) disclosure statement. Both the 3. The Principal signs the risk Principal and the Custodian sign the custody agreement and submit it to CEEX for record. 4. The Custodian opens a special account for custody at CEEX, which is independent from existing proprietary accounts. CEEX Application Procedures CEEX CEEX 2. CEEX shall review the business application and letter of commitment submitted by the applying institutions within five working days upon receipt. Those qualified shall be put into record and name list of institutions with qualification in custody business shall be published to the Public. 5. After the agreement document related to custody is recorded by CEEX, the Principal transfers the custody allowance into the custody account of the Custodian through the transaction system. 6. Upon expiry of custody period and after review of CEEX, the Custodian transfers the custody allowance and fund into corresponding account through the transaction system as required in the agreement. In case of default, it will be treated according to the agreement. 7. After all assets of the account are allocated, CEEX will freeze or cancel the custody account. Up to February 2019, 39 contracts were completed in the CEEX (a total of 15.88 million tons carbon emission allowances). Custody of Carbon Emission Allowances 20% OI COLDOU FW12210U VOM SUCG2 广州碳排放权交易所#173. CEEX's Role in Green Finance 2° CEFY 2 KOIG JU GLEGU LJUSUCE CEEX Member of National Green Finance Committee Green Finance Standards Task Force of CFSTC Secretariat of Guangdong Green Finance Committee Initiator of Guangdong- Hong Kong -Macao Green Finance Exchange and Cooperation Alliance Construction and Operation of Guangdong Green Projects Library 广碳所 广州碳排放权交易所#184. Green Finance + GLEGU LIUSUCE Participate in Green Finance Standards top-level design Standards of Carbon Finance Products Standards of Environmental Rights Financing Products Standards of Green Funds CEEX* Standards of Environmental Information Disclosure Pilot Zones Pilot Zone (Guangdong) for Carbon Emission Allowances Mortgage Pilot Zone for Marketization Ecological Compensation Based On Forestry Carbon Sink. Pilot Zone for Environment information disclosure of the Great Bay area (In Progress) 广州碳排放权交易所#19498 527 Green Stock Index CLEGU "China Carbon Market 100 index" 当前位置:首页>中国碳市场100指数 CUIUS COLDOU AISLKGL TOO JUGGX 中国碳指数100 当前指数:532.57 涨味幅:1.08% 2018-06-29 556 5.46% Meaning: 1. Enrich the carbon market index system CEEX 广碳所 2. Promote the joint movement of carbon market and capital market; 3. Promote the direct financing and motivate the companies to disclosure environmental information Features: First index that brings carbon emission performance into the compilation method 3% First index that considers the green development capacity of.. 02 the main emission companies in 0% carbon market -3% 01 ☑ 03 -5.46% 09:30 11:30 15:00 First index that reflects cross- market joint movements 04 First index that samples on companies from industries under carbon emission control 广州碳排放权交易所#20Construction of Green Project Library OULICIOU OI CLGGU LLOGCL TIDLSLA Responsibility of CEEX Selection and recognition of green projects in Guangdong province (Guangzhou); ➤Formulates the administration regulations on green companies and green projects; ➤ Encourages the green companies and projects to carry out the recognition; Issues and manages the list of identified green companies and projects. CEEX 广碳所 The projects in the list will be treated as the long-term capital of green bond issuance and also be recommended to the foreign investors; Import of foreign technologies and financial resources will be supported. Construction of Green Project Library in CEEX Establish green projects registry 1. Information acquisition section 2. Information decision section 3. Information display section Set up the management department of green project library 1. Group I: the green projects supported by special financial funds and government investment funds; 2. Group II: the green projects related to government procurement service; 3. Group III: the green projects related to the equity investment or entrepreneurship; 4. Group IV: projects information collection, verification of materials, and management of the project library Establish the green projects management procedures 1. Identification of projects fields; 2. Projects classification and related standards formulation 3. Project application 4. Project management (statistics, promotion, motivation, delivery from library) 广州碳排放权交易所#21• Platform for Ecological Compensation On Green Finance Syste Based R260 OU CLEGU LIUSUCE CEEX: General idea Establish trading system of enological compensation Upgrade the Guangdong green elements exchange; Carry out the resource and environment (mainly composed by ecological products) trading; Trial of cross-region green elements trading and helping precision poverty alleviation. |精准扶贫| 生态 补偿费 谢谢你们上游的努力 和付出,给我们下游提供 了清洁的水源和美好环境 补偿是应该的 Operation mode 1. Launch qualified ecological products; 2. Upgrade green projects library, select green projects about ecological compensation, and support the development of ecological compensation in Guangdong with support of green finance 3. Establish ecological compensation green funds through combining financial fund and social capital; Support the development of green technologies through investment funds; Create a market-based mode for ecological compensation 广州碳排放权交易所#22Platform for Environmental Information Disclosure EEX LISCIOLIU IOL FUAILOUIUGULSI TUIOLSON DICT0200 Goals Trial of environmental information mandatory disclosure in provincial listed companies (listed companies involved in the carbon allowance trading and the new third board listed companies); ● Promotion the environmental information disclosure of financial institution and companies; • Establishment of environmental information disclosure platform Requirements ■ analysis Disclosure forms Disclosure content Conduct the research of green finance project from the UK Department of Business, Energy & Industrial Strategy (BEIS); Explore the environmental information disclosure together with CDP and China institute of finance and capital market of CSRC ➤ Support national environmental information disclosure work in the perspective of Guangdong pilot zone CFO风控 : 上市公司环境信息披露 广州碳排放权交易所#23Obligation and advantage of Partner ODOSIO SUCI SEOLA SLUGSING OF TSULCUGL Keep relationships with various industry resource, and integrate power state assets Establish the white list of the corresponding industry service Issue the standards of power station assets assessment Establish a team of experts to serve all parties Policy and Industry Analysis : (1) Long-term forecast and judgment of renewable energy industry ( 2 ) Analysis of long term power generation value in a power station ● Big data ( 1 ) Operation state analysis of a renewable energy power station ( 2 ) Output and subsidies of a renewable energy power station (3) Comparison of efficiency with same type of power station CNIFA LEEX 广州碳排放权交易所 中国水利水电建设工程咨询有限公司 中国新能源电力投融资联盟 China New energy Investment and Financing Alliance CHINA EMISSIONS EXCHANGE Advanced environment and energy comprehensive service platform in China ; The biggest carbon quota trading platform; The first one green finance service platform in China “CHINA EMISSION EXCHANE GREEN FINANCE SERVICE" Supported by the biggest equity trading platform in south china (China Canton Exchange Group) whose annual trading volume has exceeded 100 billion yuan Located in the Pilot Zone (Huadu) for Green Finance Reform and Innovations, and enjoying the preferential policies from central bank and pilot zone. 国家电网 STATE GRID 中国电力科学研究院有限公司 CHINA ELECTRIC POWER RESEARCH INSTITUTE Power station service: 1. Real time monitoring of power station 2. Overall assessment of power station, including reasonable supervision of due diligence 3. Evaluation of future power limitation and absorption capacity in a power station Power grid service : power generation verification and overall efficiency evaluation 广州碳排放权交易所 CEEX 4. New Energy Assets Investment, HEM THELOA WARG12 TUAGLIGUL Financing and Trade#24Platform for New Energy Assets Investment, inancing and Trade LIUSUGIUO SUA ILING Investment & Financing Trading A2 T WAGIIGULC CEEX Selection of projects and construction ratio of project library Direct financing for companies Establish a platform for cooperation between government, banking, enterprises and society Comprehensive financial services, including credit, guarantee, insurance, and international settlement Value-added logistics service Formulate the guidelines of new energy assets trading List the new energy assets Married deal of new energy assets trading Settlement and supervision service for assets transaction ● Valuation and risk Assessment Credit rating Legal adviser and accounting services • Data acquisition for industry technical index, quality and absorption capacity of power grid 广碳所 Platform Performance ☐ 136 new energy assets projects included (2.5GW total capacity); More than 0.8 billion yuan in renewable energy financing needs; ☐ Cooperation with 95 well- known new energy investors; ☐ Strategic cooperation with 18 industry research institutes. 广州碳排放权交易所#255. Green Industry Investment Fund 2° GLGGU TUGGULU CEEX Guangzhou Green Industry Investment Fund Management Co., Ltd Found by the CEEX in April 2018; ➤ Serving for the Guangdong's green finance and the green projects; Building effective channels between green projects and green funds. ➤ Focusing on nearly 80 projects involved in environmental protection, new energy, new materials, smart manufacturing, energy conservation services. Practices and applications of the topic on G20 (2018) Green/Sustainable Finance Study Group -The Application of Green PE/VC, Green asset securitization and FinTech in Green Finance. 广州碳排放权交易所#26. • • 6. Outlook for Green Finance OUTOOK TOL CILEGU LJUSLUGG 1. Comprehensive platform for Ecological Environment Elements Trading Pilot zone construction of (national)carbon market; Business exploration in green certificates, new energy vehicle, and green building ; Pollution rights trading in Pan-Pearl River Delta; Exchange for city mineral trading and others rights, including energy-use rights, ecological compensation market, et al. 3. Greater Bay Area Green Finance Cooperation Center Innovative recognition method of green company and project, and construction of green project library Promoting the project of environmental rights mortgage loan together with Hong Kong and Macao institutions; Signing the initiative on the Environmental information disclosure of Greater Bay Area and promoting the environmental information disclosure; Promoting green investment and financing with green funds, and channeling the social capital to green funds • CEEX 2. Promoting RMB Internationalization with Carbon Products Low-carbon project development and carbon finance system construction for countries under OBOR Regional carbon trading system for countries under OBOR Facilitation of foreign exchange in and out of carbon trading system depending on the advantages of the Greater Bay Area; Promoting RMB to become the main currency of international carbon finance market in the process of International capital settlement and offshore capital transfer 4. Institution for International Environmental Governance under OBOR Improvement of ability on combating climate change, Promoting the mutual recognition of green credentials, and recognition of green projects in Greater Bay Area; International exchanges and cooperation with overseas environmental energy trading institutions and trading member in green finance ; Improvement of ability on the green finance of government, pilot companies and other companies. 广州碳排放权交易所