China Coal Energy Group Co., Ltd. (middling coal Group for short) is a key state-owned backbone enterprise managed by the State owned Assets Supervision and Administration Commission of the State Council. It has three listed companies, China Coal Energy, Shanghai Energy and Xinji Energy. By the end of 2020, China Coal Group had total assets of 412.8 billion yuan and 127000 employees. Obtained double A-level performance evaluation and party building responsibility system evaluation for central enterprise leaders in 2020, and ranked among the Fortune Global 500 for two consecutive years.
China Coal's carbon management challenges
Since 2016, China Coal Group has started the exploration of green and low-carbon transformation. However, due to the lack of professional ability, the complexity of the group's internal hierarchy, the lack of basis for making emission reduction decisions and huge cost investment, China Coal Group's transformation path is full of difficulties. China Coal Group began to actively seek external cooperation after realizing that the professional work was entrusted to professional teams.
At this time, China Coal Group consolidated the carbonstop, and decided to cooperate with carbonstop after in-depth understanding of its rich experience in carbon management projects, powerful experts and technical teams.
In November 2021, China Coal Group officially announced that the carbon emission information management system development service project had been handed over to Carbonstop. Carbonstop has been commissioned by China Coal Group to build a carbon emission and asset data management, analysis and evaluation, carbon trading management, and carbon reduction assistance decision-making function integrated with a carbon emission information management system.
Solutions for carbonstop
In the face of the complex hierarchy and numerous branches of China Coal Group, carbonstop has created a top-down, efficient carbon management information management system.
Quantification is the foundation of management. Faced with the tedious data collection work, this system uses automation methods to help the group achieve automatic collection and centralized management of carbon emission data. And embedding the underlying calculation method of carbon emission data for precise enterprise carbon accounting greatly reduces the time and labor costs of quantification.
In addition, the system predicts future emissions, emissions reductions, and quota holdings based on historical data of carbon emissions and emissions reductions. At the same time, online real-time monitoring of carbon market quotas and CCER trading status is carried out, and based on the enterprise's carbon asset holdings and quota prediction results, annual and quarterly trading plans are generated. Regular evaluations of performance costs and risks are conducted, and performance risks are warned to provide decision-making support for completing performance at the lowest cost.
Regarding carbon trading management, the system establishes an internal transaction matching function within the enterprise to record the transaction process. During transaction entry, the trading plan, carbon asset holdings, predicted quota gaps, main terms of the trading contract, and trading funds can be automatically checked to determine the rationality and compliance of the transaction. During the transaction process, carbon assets, funds, and management fees for internal allocation and external unified purchase and sale can be automatically allocated and summarized to the controlling emission enterprise. The controlling emission enterprise should be able to see its own asset and fund surplus and deficit situation at any time.
At the same time, the system realizes dynamic monitoring and evaluation of the carbon market, provides early warning for CCER holdings exceeding allowable usage and insufficient trading performance approaching holdings, predicts trading price trends, evaluates and warns trading risks, and provides trading strategy recommendations.
For the carbon emission reduction management needs of China Coal Group, the system establishes the enterprise carbon emission reduction plan and target assessment system to achieve online setting of emission reduction goals, online filing of emission reduction plans and online assessment of emission reduction effects. At the same time, the latest emission reduction technologies in the industry are regularly updated, and factors such as emission reduction effects and implementation costs are analyzed to provide cost-benefit analysis results and implementation suggestions, providing decision-making basis for the formulation of emission reduction plans.
Carbonstop is a carbon management information management system customized by China Coal Group, which has realized the overall solution for emission control enterprises from carbon data collection, carbon accounting, carbon target formulation, disassembly and implementation, and carbon asset management.