Incorporating GECs into Product Carbon Footprint Calculation

This article shares suggestions, by Liu Hanyuan, vice chairman of the All-China Federation of Industry and Commerce, and chairman of the board of directors of Tongwei Group, on incorporating Green Electricity Certificates (GECs) into the calculation of product carbon footprint.

Background

Meeting sustainability requirements will enable enterprises to become more competitive, and in particular, the production of low-carbon goods and services. One solution to reduce the carbon footprint of goods is via China’s Green Electricity Certificate (GEC) which addresses indirect emissions from the purchase of electricity. However, in some international trades, GECs are also not included in the product carbon footprint accounting. This is due to the lack of carbon footprint factors of the power grids. Therefore, in order to promote the application of China’s GECs in product carbon footprint accounting, it is necessary to publish the carbon footprint factor of China’s remaining electricity mix as soon as possible.

Suggestions

Release and dynamically update the carbon footprint factors of the electricity mix at the national, regional and provincial levels by the Ministry of Ecology and Environment

In addition to carbon dioxide, the main greenhouse gases should also be included in the scope of calculation. The calculation should exclude the amount of electricity corresponding to GECs that have been traded on the market, take into account power generation facilities, power generation links, and the whole process of transmission and distribution (including line loss). The dataset should be developed and published in accordance with the international formats.

Establish and enhance the GEC system in line with international standards and promote the international recognition of China’s GECs

There should be refinement of the traceability information of GECs to power generation facilities. Implementation procedures for the issuance, transfer and cancellation of GECs should be released and should align with international requirements. This encompasses building a comprehensive life cycle management system for GECS to ensure their credibility, and provide strong support for international recognition of GECs.

Introduce standards to support the application of GECs in product carbon footprint accounting and strive for international recognition

It is necessary to introduce standards that support the application of GECs in product carbon footprint accounting. These should complement  the product carbon footprint accounting standards developed by the Ministry of Ecology and Environment. There should also be efforts to include the use of GECs in the EU carbon footprint accounting rules for imported products through consultations and agreements.

As the renewable energy landscape in China evolves, it is more vital than even to work with knowledgeable and trusted partners like REDEX to navigate your renewable journey in the country.

Email us enquiry@redex.eco to find out more about GECs and their benefits.