Helping the “Double Carbon” Goal, Carbon Credit Evaluation has a Broad Application Scenario

Latest News: On July 16, the 2022 China International Carbon Trading Conference and the National Carbon Market Launch Anniversary Conference with the theme of “Green Empowerment, Carbon for the Future” was held. At this conference, the carbon credit evaluation standard was officially released, which marks that the carbon credit evaluation has entered a new stage of development. It is reported that the main application scenarios of carbon credit evaluation are very broad, including docking with green financial business, docking with the carbon reduction system and green development system of governments at all levels, docking with the ESG rating system, etc.

According to reports, the main contributors to the carbon credit evaluation standard include Fudan University Sustainable Development Research Center, Shanghai Environment and Energy Exchange, Tsinghua University Global Securities Market Research Institute, Nanjing University Carbon Neutral Research Institute, Shenyang Environmental Resources Exchange, National Net Zhejiang Electric Power Co., Ltd. Ningbo Power Supply Company, Shanghai Baotan New Energy Environmental Protection Technology Co., Ltd., Shanghai Tanhua Technology Co., Ltd., etc.

According to the Sustainable Development Research Center of Fudan University, corporate carbon credit refers to the willingness and ability of an enterprise to fulfill its commitments under the goals of climate change and carbon neutrality. The carbon credit evaluation starts from the perspectives of business and assets, and is based on six themes of macro risk, regional risk, industry risk, corporate status, carbon asset risk, and non-carbon asset risk. At the same time, considering the different situations of companies participating in carbon peak carbon neutralization, companies are divided into six categories, and different categories of companies have different detailed index systems.

The carbon credit evaluation follows a four-level promotion logic, namely “determination of evaluation factors”, “assessment importance”, “benchmark verification” and “benchmark adjustment”, and finally AAA, AA, A, BBB, BB, B, CCC, CC, and C can be obtained. A nine-level carbon credit rating. Compared with the traditional credit rating system, carbon credit evaluation focuses on evaluating the impact of climate change and dual carbon goals on corporate credit, and focuses on the impact of climate change and dual carbon goals on corporate credit. From the scope of application, the carbon credit evaluation is wider than the general credit evaluation.

It is reported that the Sustainable Development Research Center of Fudan University is actively connecting with international rating agencies and is committed to improving the internationalization of carbon credit evaluation. Carbon credit evaluation should not only be comprehensively popularized and applied in China, but also internationally recognized to build a global carbon credit evaluation standard. “By participating in the formulation of international carbon standards, it is expected to enhance my country’s leadership in the global response to climate change. At the same time, this move will also help my country to build a global carbon financial center and carbon pricing center, obtain global carbon pricing power, and improve Chinese enterprises. green competitiveness.”
Chen Shiyi, director of the Center for Sustainable Development at Fudan University, said.

The Sustainable Development Research Center of Fudan University pointed out that the main application scenarios of carbon credit evaluation are very broad, including docking with green financial business, docking with the carbon reduction system and green development system of governments at all levels, docking with the ESG rating system, etc.

Specifically, carbon credit evaluation can be connected to green credit, green bonds, trust, insurance and other green financial businesses. At the same time, carbon credit evaluation can connect the carbon reduction system and green development system of governments at all levels, and provide an important starting point for the government’s carbon reduction and green development work. The carbon credit evaluation results can provide important indicators for government-certified energy-saving and carbon-reduction enterprises, green enterprises, and low-carbon demonstration parks, etc., and add sub-items for enterprises to bid for government procurement. Carbon credit evaluation can also be connected to the ESG rating system to enrich and improve ESG ratings. The current ESG rating lacks the evaluation content of “carbon factors” that affects the credit status of enterprises. The carbon credit evaluation results can be used as an important rating indicator in ESG to improve the ESG rating system. An excellent carbon credit rating can help improve a company’s ESG rating.

In addition, carbon credit evaluation is an important way for enterprises to improve their carbon management level. Carbon credit evaluation plays a guiding role for enterprises to carry out carbon management work. Enterprises can improve their own carbon credit by actively establishing a green and low-carbon certification system, actively developing or using emission reduction and carbon reduction technologies, implementing emission reduction and carbon reduction strategies, building emission reduction and carbon reduction systems, and actively carrying out carbon management work such as carbon asset management. to achieve the multi-level practical value of carbon credit rating. In this process, enterprises can achieve the improvement of carbon management level, and the carbon credit rating can achieve “governing carbon with credit and reducing carbon with credit”.

More importantly, carbon credit evaluation is an important part of enterprise asset management. Assessing the status of a company’s carbon assets is a crucial part of carbon credit evaluation, and a company’s carbon asset management capability will directly affect the company’s carbon credit rating and rating outlook. Enterprises with a higher carbon credit rating can not only reduce their own emission reduction costs and avoid asset risks that may be caused by climate change, but also more easily obtain financial support such as green credit from banks. Reduce corporate financing costs. Therefore, in order to obtain excellent carbon credit evaluation results, enterprises will be encouraged to independently strengthen the management of carbon assets, thereby enhancing the overall value of the enterprise.