New carbon trading platform seen as key to green goals

Shenzhen's new carbon trading platform marks a significant step toward China's push for carbon neutrality, as it will revolutionize carbon trading and set up a comprehensive system to measure and label greenhouse gas emissions in the Guangdong-Hong Kong-Macao Greater Bay Area, experts said.

The recently launched platform — Shenzhen Green Exchange — aims to provide a transparent and efficient marketplace for carbon credits, connecting businesses committed to reducing their carbon footprints with those seeking to offset their emissions.

"The launch of the SGE marks a new step forward in Shenzhen's efforts to become a model for building a beautiful China," said Lai Gaoyu, chairman of the SGE.

"Looking ahead, the SGE will continue to contribute the wisdom and strength of its people to fostering a thriving green economy in Shenzhen and achieving its carbon goals."

Lai said the platform is expected to stimulate investment in green technologies and sustainable practices across various sectors, from energy and manufacturing to transportation and agriculture.

It will leverage advanced technology to ensure accurate tracking and verification of carbon reductions, fostering trust and integrity within the carbon market, he added.

Along with the launch of the platform, several key documents, including a white paper detailing Shenzhen's innovative approaches to carbon finance and a list of pilot projects focused on establishing near-zero carbon emission zones, were released.

In addition, a comprehensive system for measuring and labeling greenhouse gas emissions associated with products and services was introduced. The system, developed in collaboration with all relevant authorities in the GBA, leading experts and institutions, employs rigorous scientific standards to accurately calculate carbon footprints for various products, including drones, projectors, medical devices and consumer electronics.

Shenzhen has been endeavoring to serve as a model for other places seeking to implement effective climate action strategies.

However, those efforts cannot be easy, Zhao Tianshou, an academician at the Chinese Academy of Sciences (CAS) specializing in energy science and engineering thermophysics, said at a recent forum.

China's progress toward its green and low-carbon energy transition is lagging behind schedule, primarily due to the intermittent nature of renewable energy sources like solar and wind power, Zhao said.

"To overcome this hurdle, the adoption of vanadium flow batteries could be a promising long-duration energy storage solution due to its safety, flexible duration and scalability, long life span and broad applicability across various sectors," Zhao said.

Zou Caineng, an academician from the CAS and chief scientist of the CNPC Shenzhen New Energies Research Institute, proposed a four-part strategy for China's energy transition — clean fossil fuels, expanded renewables, coordinated distributed generation and smart energy management, driven by technological innovation, including green hydrogen and advanced energy storage.

"This transition will shift China's energy structure from carbon-based to zero-carbon sources, integrating oil and gas companies with renewables, achieving carbon neutrality, strengthening energy security, and accelerating green development, ultimately resolving the traditional trade-offs between energy security, affordability, and cleanliness," Zou added.