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2022 CIFCC Main Forum--Low Carbon Development and Market Mechanism

On the afternoon of October 30, 2022, 2022 CIFCC main forum, entitled Low Carbon Development and Market Mechanism, was successfully held, and He Jiankun, vice director of China¡¯s National Climate Change Experts Committee, vice director of School Council of Tsinghua University, hosted the forum.

The main guests include: Edmond Alphandery, chairman of Euro50 Group, former French Finance Minister, Liu Yanhua, counselor of the State Council, former vice minister of the Ministry of Science and Technology, Klaus Radunsky, unit head of Emission Trading Registry of Federal Environment Agency, Austria, Kunihiko SHIMADA, special advisor to the Minister at the Ministry of the Environment of Japan, made keynote speeches respectively. The dialogue topics cover opportunity and challenges of low-carbon development, strategy and measure of low-carbon development, establishment and development of carbon trading market.

Mr. He Jiankun indicated: despite no legally restrictive agreement was concluded in Copenhagen Summit, all relevant countries virtually reached an agreement of controlling temperature rise less than 2¡æ, which means that the global emissions peak will appear during 2025¡«2025 and CO2 emissions level in 2050 will be at least in half in 2990 under the 2 ¡æ situation. However, the world was insufficient to realize emission reduction path of controlling temperature raise less than 2¡æ in the condition of the present development trend and the countries' emission reduction goals and measures.

Mr. Edmond Alphandery pointed out: the states, from the perspective of whether production or consumption, should cancel the subsidy on fossil energy; at present, the amounts of such subsidy has reached up to 500 billion USD, 20 times that on clean energy, even worse, only 20% of the subsidy was offered to extremely poor people, who accounted for 20% of world population as a whole. If pricing mechanism may affect consumers' behavior, we shall impose carbon tax, reduce the consumption of fossil energy, increase the use of nuclear energy or other renewable energy. The most pressing task is that we shall keep a clear mind, and muster up the courage to combat the challenges by climate change, and the solutions herein covered different aspects like science and technology, finance or politics, which shall be considered globally and from a long-term point of view.

Mr. Liu Yanhua indicated that: There were three key signals on climate change, namely, temperature pick-up, rising sea level and disaster by extreme weather, which have severely negative influence on human, economy and society. At present, the problem of climate change has shifted from scientific issue to economic and political one, from scientific conclusion to political consensus, therefore, no one may get around it. One of the important consensus we have reached is ¡°the principle of common but differentiated responsibilities". First, we shall acknowledge that GHG emission is closely linked with human settlement and industrial development, second, we shall be well aware of the difference between developed countries and developing ones, and shall consider the feasibility and fairness of emission reduction. Climate change is essentially an energy problem, behind which is the fierce competition on space and right to CO2 emission, all of them have a bearing on business interests.

Mr. Klaus Radunsky insisted that: each state shall make a quick shift towards low-carbon society, strengthen the coordinated and interactive effect between public and private sectors, and need to establish a long-term strategic notion to promote and achieve sustainable development and low-carbon goal, and extend their successful mode to other nations.

Mr. Kunihiko SHIMADA put forward his view on the establishment of market mechanism and the position Japanese government held: Japan has entered into the second commitment period of Kyoto Protocol, however, some people could wonder whether Japan will nullify these measures herein; As a matter of fact, Japan will not nullify, but continue to effectuate them, such as CDM, and policy-based CDM mechanism, further promote the implementation of energy efficiency policy.

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