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China releases updated draft allocation plan for power sector
REEI 2020/11/27
On 20 November 2020, the Chinese Ministry of Ecology and Environment (MEE) released an updated version of the draft allocation plan for the power sector.
This is the third version since September 2019, when a trial plan was released. After broad-based testing of the allocation methodologies outlined in the trial plan through a series of regional ETS capacity building activities, an updated version was sent for consultation to key stakeholders in August 2020. This latest allocation plan, together with other key ETS policy drafts released over the past few weeks, have brought the country’s national ETS closer to its operational phase.
The plan, titled “2019-2020 National Carbon Emission Trading Cap Setting and Allowance Allocation Implementation Plan (Power Generation Industry)” is now under public consultation. The deadline for submitting comments is 29 November 2020.
Compared to the previous versions, the draft continues to use benchmarking as the main allocation method, with four distinct benchmarks for conventional coal plants below and above an installed capacity threshold of 300 MW, unconventional coal plants ( such as coal gangue, coal slime, and coal water slurry), and natural gas plants, respectively. The table below provides an overview of changes in benchmark values as compared to the previous version in August 2020. Overall, benchmarks have been mainly tightened.
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