Shenzhen - April 2022

On March 30th, QIMA, a leading global provider of quality assurance and compliance services, and Sedex, a global platform for suppliers to exchange ethical information, organized a webinar on Carbon Emissions Trading to share information on the origins of Carbon Emissions Trading and the theoretical foundations of the economics of Carbon Emissions Trading, and to analyze and discuss the basic framework of the National Carbon Trading Market, the Carbon Emissions Trading System, and to look forward to and dialogue with the business opportunities that will arise from the trading market. The seminar will analyze and discuss the basic framework of the national carbon market and the carbon emissions trading system, and conduct outlooks and dialogues on other business opportunities arising from the trading market, so as to help sustainable development.

Climate change has implications for the environment, the economy and national security. In response to the climate challenge, governments around the globe have been actively concluding agreements to jointly address the climate challenge, and carbon emissions trading systems have emerged.

The trading framework of the Carbon Emissions Trading System (CETS) consists of the aggregate setting, allocation of allowances, registration of allowances, MRV, trading of emission credits, settlement, and clearing of the compliance process. Aggregate quantity setting refers to the maximum amount of carbon dioxide allowed to be emitted by a country or region within a specified period of time. Under the premise of total amount setting, carbon emission credits are issued to enterprises included in the trading market according to statutory methods and standards, and the obligations and powers of carbon emission subjects are clarified through allocation. Allocation registration is the voucher and record carrier of carbon emission rights. MRV mechanism is the cornerstone of the carbon emission trading system, including the detection, reporting and verification of emission data. Carbon emissions trading entities can trade allowances through listing agreement transfer and block trading. Enterprises that have been included in the management of allowances submit their allowances in full through the registration system within the prescribed period each year, based on the allowances of the previous year, to fulfill the obligation of clearing the payment. If the quota is insufficient, it will be purchased through trading; if there is a balance in the match, it can be sold or used in subsequent years. In the settlement link, the settlement method of carbon trading is that the registration and clearing organization, in accordance with the principle of cargo and silver payment, will, at the point of collection and delivery on the same day, according to the transaction results of the trading system, carry out transaction-by-transaction full liquidation for the main body of the transaction, and, according to the results of the liquidation, carry out the collection and delivery of the right to trade and the funds of the carbon trading.

At present, the European Union, the United States, New Zealand, Japan, South Korea and other countries are actively promoting the development of the carbon emissions trading market. China has launched a pilot carbon emissions trading program since 2011, with a total of eight provinces and municipalities across the country conducting local pilots, and will launch a national carbon emissions trading market in 2021.

In the process of realizing carbon neutrality, enterprises are undoubtedly one of the most important participants. In addition to participating in carbon emissions trading, QIMA QIMA experts said that enterprises can also formulate voluntary carbon emissions response programs to implement emission reductions.

Enterprises can independently conduct greenhouse gas accounting, disclose information and pass certification to enhance their credibility and competitiveness in sustainable development. For carbon emission accounting, the Greenhouse Gas Accounting System (GHG Protocol) developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) is one of the widely used standards. The Science-Based Carbon Targeting Initiative (SBTi), co-sponsored by the Center for Global Environmental Information and Research (CGEIR), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), provides industry-specific resources and practical guidance to help companies set emissions reduction targets consistent with the Fifth Assessment Report (AR5) of the United Nations Intergovernmental Panel on Climate Change (IPCC), which is well below the decarbonization level of 2 or 1.5 degrees Celsius. With the Carbon Neutral Practice, more and more companies are obtaining the PAS2060 Carbon Neutral Certification.

In order to help companies develop sustainably, QIMA can customize exclusive audit operation solutions for production, quality, and environmental issues according to the needs of the company. For example：comprehensive CSR solution for responsible supply chain includes a set of options to help companies achieve all sustainable sourcing goals; independent third-party review of a company's supply chain with a focus on long-term changes; data collection to manage risks and make informed decisions to build a sustainable supplier network; audit tools performed according to recognized industry standards or customized to the needs of the company, validation process, Results are tracked and followed up over time to enable continuous improvement for the organization and its suppliers.

QIMA, is committed to helping organizations advance their path to sustainability.