The central economic work conference again mentioned carbon peaking and carbon neutralization. In early December, the central economic work conference was held in Beijing. At the conference, there were new expressions on double carbon, including “correctly understand and grasp carbon peak and carbon neutralization”, “new renewable energy and raw material energy consumption will not be included in the total energy consumption control”, “create conditions to realize the transformation from” double control “of energy consumption to” double control “of total carbon emission and intensity as soon as possible”. It has made plans and arrangements for the development of China’s “double carbon” work.
The construction plan of “waste free city” was officially released to promote the comprehensive green transformation of the city. Recently, the Ministry of ecological environment and other 17 departments jointly issued the work plan for the construction of “waste free cities” during the 14th Five Year Plan period. It is planned to promote the construction of “waste free cities” in about 100 cities. By 2025, the solid waste generation intensity of “waste free cities” will decline rapidly, the comprehensive utilization level will be significantly improved, the harmless disposal capacity will be effectively guaranteed, and the synergistic effect of pollution and carbon reduction will be brought into full play. Sanitation equipment and operation, waste incineration, recycling and other fields deserve attention.
The first performance cycle of the national carbon market has ended. According to the data of Shanghai Environment Group Co.Ltd(601200) energy exchange, as of December 30, the cumulative trading volume of carbon emission quota (CEA) in the national carbon market was 176 million tons, with a cumulative turnover of 7.505 billion yuan. Driven by the performance demand of enterprises, the trading willingness of key emission units has increased significantly, and the trading volume in the national carbon market has increased significantly.
Investment suggestion (power): building a green power system based on new energy is the key to achieving the goal of “double carbon”. Under the background of rising thermal power prices and the construction of a national unified power market system, the society’s acceptance of new energy power generation has increased, and there is still room to improve the green power premium and consumption ratio. New energy operators and new energy power generation operators from traditional coal power transformation are expected to benefit fully. It is recommended to pay attention to China Power (2380. HK), Huaneng Power International Inc(600011) (600011. SH), China Three Gorges Renewables (Group) Co.Ltd(600905) (600905. SH), Henan Bccy Environmental Energy Co.Ltd(300614) (300614. SZ).
Investment suggestion (environmental protection): according to the 14th five year plan for circular economy development, by 2025, China’s resource recycling industry system will be basically established, the resource recycling system covering the whole society will be basically completed, the resource utilization efficiency will be greatly improved, and the substitution ratio of renewable resources to original resources will be further improved. With the accelerated development of renewable resources industry and the rapid opening of market space, relevant enterprises will also usher in a period of rapid growth. Hazardous waste recycling, waste incineration, recycled plastics and other fields deserve attention. Beijing Geoenviron Engineering & Technology Inc(603588) (603588. SH), Zhefu Holding Group Co.Ltd(002266) (002266. SZ) recommended to recycle recycled metals through hazardous waste recycling; Recycled plastic recycling faucet Shandong Intco Recycling Resources Co.Ltd(688087) (688087. SH)
Risk warning: the risk that the policy strength is less than expected; The risk that the project construction progress is less than expected; Risk that the output of new energy power generation is less than expected; The risk of intensified industry competition; The risk of compliance problems in the company’s operation; Risk of subsidy decline in subdivided industries
