Core Viewpoint - The article highlights the record-breaking electricity demand in China due to high temperatures and the measures taken to ensure stable electricity supply during peak summer months [1][3][4]. Group 1: Electricity Demand and Supply - National maximum electricity load has reached historical highs, exceeding 1.5 billion kilowatts on multiple occasions in July, with a peak of 1.508 billion kilowatts, an increase of 0.57 million kilowatts compared to last year [1][3]. - The increase in electricity demand is driven by higher temperatures, leading to greater use of cooling appliances in households and increased industrial activity, with GDP growth of 5.3% in the first half of the year contributing to this demand [2][3]. - The electricity supply system has been operating smoothly, with over 20 million kilowatts of new generating capacity added in the first half of the year, including 3 million kilowatts of hydropower, gas, and coal power [3][4]. Group 2: Green Certificate Market - The green certificate market has shown significant growth, with 1.371 billion green certificates issued in the first half of the year, a year-on-year increase of 149%, and 958 million of these are tradable [5][6]. - The trading volume of green certificates has doubled, reaching 348 million certificates, with a notable increase in prices, indicating a growing demand for renewable energy [5][6]. - The government is actively promoting the issuance of green certificates for distributed renewable energy projects, with a focus on improving the coverage and efficiency of the certification process [6][7].

Investment Rating - The industry investment rating is "Positive" [2] Core Viewpoints - As of April 18, 2025, the cumulative transaction volume of China's carbon market has exceeded 40 billion yuan, indicating a strong push towards green development [3][16] - The carbon market is transitioning from free allocation of quotas to a combination of free and paid allocation, which is expected to enhance market effectiveness and promote a virtuous cycle of investment, emission reduction, and returns [3][20][24] - The inclusion of the steel, cement, and aluminum smelting industries in the carbon market is expected to significantly increase the market's coverage and effectiveness, with the total carbon emissions covered rising from approximately 40% to 60% of the national total [3][25] Summary by Sections Market Performance - The environmental sector index rose by 0.04% as of April 18, 2025, underperforming the broader market, which increased by 1.19% [9] - Sub-sectors such as water governance and air governance showed positive growth, while solid waste management and environmental equipment experienced declines [11] Industry Dynamics - The Ministry of Industry and Information Technology announced the organization of energy efficiency inspections for 2025, focusing on key industries and energy-consuming equipment [26] - The National Energy Administration reported that 200 million green certificates were traded from January to March 2025, with a significant portion occurring in March [28] Investment Recommendations - The "14th Five-Year Plan" emphasizes environmental quality and industrial green development, suggesting sustained high demand for energy-saving and recycling industries [34] - Recommended stocks include: Hanlan Environment, Xingrong Environment, and Hongcheng Environment; stocks to watch include: Wangneng Environment, Junxin Co., Wuhan Holdings, and others [34]