Shenzhen’s newly launched carbon trading platform represents a major milestone in China’s journey toward carbon neutrality, offering a transformative approach to carbon trading while establishing a comprehensive system for measuring and certifying greenhouse gas emissions across the Guangdong-Hong Kong-Macao Greater Bay Area, experts say.
The Shenzhen Green Exchange (SGE) aims to create a transparent and efficient marketplace for carbon credits, linking businesses striving to lower their carbon footprints with those looking to offset their emissions.
The establishment of the SGE is a significant step in Shenzhen’s mission to become a model city for ecological progress in China,” said Lai Gaoyu, chairman of the SGE.
Looking ahead, Lai emphasized that the platform will play a crucial role in driving a thriving green economy in Shenzhen and advancing the city’s carbon neutrality goals.
He noted that the exchange is expected to encourage investment in green technologies and sustainable initiatives across industries such as energy, manufacturing, transportation, and agriculture.
By leveraging cutting-edge technology, the platform will ensure precise tracking and verification of carbon reductions, reinforcing trust and credibility within the carbon market.
Alongside its launch, key documents were released, including a white paper outlining Shenzhen’s pioneering approaches to carbon finance and a list of pilot projects aimed at creating near-zero carbon emission zones.
Additionally, a robust system for assessing and labeling greenhouse gas emissions associated with products and services was introduced. Developed in collaboration with authorities, industry experts, and institutions within the GBA, this system adheres to rigorous scientific standards to accurately calculate carbon footprints for products such as drones, projectors, medical devices, and consumer electronics.
Shenzhen has been striving to set an example for other regions looking to implement effective climate action strategies.
However, these efforts come with challenges, said Zhao Tianshou, an academician from the Chinese Academy of Sciences (CAS) specializing in energy science and thermophysics.
At a recent forum, Zhao highlighted that China’s progress in transitioning to a low-carbon energy system is falling behind schedule, largely due to the intermittent nature of renewable energy sources like solar and wind power.
To address this challenge, adopting vanadium flow batteries could offer a promising solution for long-duration energy storage, given their safety, flexible discharge periods, scalability, long lifespan, and broad applicability across various industries,” Zhao explained.
Zou Caineng, a fellow CAS academician and chief scientist at the CNPC Shenzhen New Energies Research Institute, proposed a four-pronged strategy to accelerate China’s energy transition. His approach emphasizes cleaner fossil fuels, expanded renewable energy adoption, integrated distributed generation, and smart energy management, all driven by technological advancements such as green hydrogen and advanced energy storage.
This transition will transform China’s energy structure from being carbon-intensive to carbon-neutral, integrating oil and gas sectors with renewable energy sources,” Zou said. “Achieving carbon neutrality will enhance energy security, drive green development, and resolve the long-standing trade-offs between energy reliability, affordability, and sustainability.
