3 Low-Carbon Transition (Peaking) of Chinese Cities: The Case …
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Table 3.7 Carbon prices in S2 scenario (loose allowance) and its impact
S2
scenario
2013
2014
2015
2016
2017
2018
2019
2020
Carbon
price
(yuan/t
CO 2 )
8
8
9
11
13
15
16
18
Change
rate in
total GDP
−0.02% −0.02% −0.03% −0.03% −0.04% −0.04% −0.04% −0.04%
Change
rate in
GDP
growth
−0.02% 0.00%
−0.01% 0.00%
0.00%
0.00%
0.00%
0.00%
Change
rate in
Energy
intensity
compared
to 2010
−23.2%
−37.63%
Change
rate in
Carbon
intensity
compared
to 2010
−24.95%
−40.48%
3.3.2.3 A Proposal for a Trigger Price Range for Open Market
Operations
Based on research of the above scenario, it’s suggested that a trigger of floor price
is created for carbon prices in Beijing in the design of the carbon trading system,
whereby a price lower than 20 yuan would trigger a repurchase according to the
“decision” of Beijing Municipal People’s Congress, and a price higher than 150
yuan would trigger an auction of carbon allowance.
To illustrate, the city could announce the Administrative Measures on Open Market
Operation: a daily weighted average price above 150 yuan/ton for 10 consecutive
trading days should be up for auction; and a repurchase could be conducted when
such price is below 20 yuan/ton for 10 trading days in a row.