Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the green electricity (绿电) sector in China, particularly in relation to the impact of the 136 Document released by the National Development and Reform Commission in early 2025 [1][3][9]. Core Insights and Arguments - **Valuation of Green Electricity Sector**: The price-to-book (PB) ratio for green electricity operators has fallen to approximately 0.7 to 0.8, reflecting a significant decline over the past three years. Despite this, favorable policy developments are expected to enhance the sector's attractiveness [2][4]. - **Impact of the 136 Document**: The 136 Document mandates that all new energy grid-connected electricity enters market-based trading, stabilizing revenue expectations for existing projects through a price difference settlement mechanism. This has led to increased competition among operators [3][9][10]. - **Cash Flow Improvement**: The cautious investment approach in the sector is anticipated to improve cash flow and alleviate the financial pressures caused by previous rapid capacity expansions [4][14]. - **Accounts Receivable Issues**: Many green electricity operators face high accounts receivable due to historical subsidy shortfalls. If these issues are resolved, it could lead to significant upward potential for these companies [5][16]. - **Green Value as Competitive Advantage**: The green value of electricity is highlighted as a core competitive advantage, with the gradual improvement of China's green certificate system gaining international recognition [1][6][20]. Additional Important Content - **Historical Context of the Green Electricity Market**: The market has experienced three distinct phases, with the current phase characterized by low valuations and high policy support, making it an attractive investment opportunity [7][8]. - **Future Directions for Green Electricity Consumption**: The ongoing development of a green electricity consumption system is crucial, with policies aimed at ensuring fair competition and enhancing overall industry efficiency [17][22]. - **Cross-Province Trading Dynamics**: Currently, 92% of transactions in the green electricity market are cross-province, with provinces rich in renewable resources selling to high-energy-consuming provinces [21]. - **Government Measures to Promote Green Energy**: The government is implementing dual control measures on energy consumption and renewable energy consumption weights to drive the growth of green energy [22][24]. Conclusion - The green electricity sector in China is positioned for potential growth due to favorable policy changes, improved cash flow prospects, and a strong competitive edge based on environmental value. The current low valuation presents a compelling investment opportunity for operators like Datang Renewable Power, Jinneng Clean Energy, and Longyuan Power [24].

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The carbon quota trading prices in the European and American carbon markets decreased last week, while the KAU24 spot price in the South Korean market increased. The trading volumes in the American and South Korean carbon markets rose, and the cumulative trading volume of carbon emission allowances in the national carbon market in China increased significantly. The weekly trading volume in domestic pilot carbon markets also increased [2]. - Two important events occurred in the field of international green development cooperation: China and CELAC reached a cooperation plan, and RE100 unconditionally recognized Chinese green certificates, which shows China's continuous improvement in green rule - guiding ability and technology export capacity [2]. Summary by Directory 1. International Carbon Trading Market Tracking 1.1 European Carbon Quota Price and Volume - EUA spot price dropped from 72.31 euros/ton on May 12 to 69.94 euros/ton on May 16, a weekly decline of 3.28%. The trading volume was 7.1 tons last week, a 44.96% decrease from the previous week. EUA futures price fell from 73.41 euros/ton to 70.99 euros/ton, a 3.3% decline, and the trading volume was 279.1 tons, a 35.94% decrease [6]. 1.2 American Carbon Quota Price and Volume - EUA futures price decreased from 73.41 euros/ton on May 12 to 70.99 euros/ton on May 16, a 3.3% weekly decline. The total trading volume of EUA futures was 180.02 million tons, a 15.03% increase from the previous week. UKA futures price dropped from 52.71 pounds/ton to 48.36 pounds/ton, an 8.25% decline [10]. 1.3 South Korean Carbon Quota Price and Volume - KAU24 spot price rose from 8810 won/ton on May 12 to 8910 won/ton on May 16, a 1.14% weekly increase. The trading volume was 47.48 tons, a 107.79% increase from the previous week [16]. 2. Domestic Carbon Market Tracking 2.1 National Carbon Market Carbon Quota Volume and Average Transaction Price - The cumulative trading volume of carbon emission allowances (CEA) in the national carbon market last week was 3.672 million tons, and the cumulative transaction amount was 265.7224 million yuan, with increases of 212.14% and 222.83% respectively from the previous week. As of May 16, the average daily transaction price of CEA last week was 71.16 yuan/ton, a 1.71% increase [19]. 2.2 Weekly Average Transaction Price of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets - Except for Guangdong Province, the weekly average transaction prices of carbon quotas in domestic pilot carbon markets showed a downward trend last week, with the largest decline of 5.66% in Fujian's FJEA. Compared with the same period last month, except for Beijing, Tianjin, Hubei, and Shenzhen, the prices in other pilot markets declined, with the largest decline of 28.69% in Chongqing's CQEA [23]. 2.3 Carbon Quota Volume and Transaction Amount in Domestic Pilot Provincial and Municipal Carbon Markets - The carbon quota trading in domestic pilot carbon markets last week was mainly concentrated in Chongqing, Shenzhen, Tianjin, and Shanghai, accounting for 96.47% of the total weekly trading volume and 94.90% of the total weekly transaction amount. The total weekly trading volume in domestic pilot carbon markets was 181,600 tons, a 71.19% increase from the previous week [25]. 3. Double - Carbon Frontier Technology Tracking 3.1 China - CELAC Cooperation Plan: Exploring Cooperation and Investment Opportunities in Energy Transition and Advanced Energy Storage Technology - On May 13, China and CELAC jointly formulated a cooperation plan (2025 - 2027), emphasizing cooperation and investment opportunities in energy transition and advanced energy storage technology to promote green and low - carbon energy transformation [28]. 3.2 RE100 Announces Unconditional Recognition of Chinese Green Certificates - Recently, RE100 announced unconditional recognition of Chinese green certificates. This is a major achievement of China's green certificate system improvement, which will boost confidence in Chinese green certificate consumption, expand demand, and enhance the green competitiveness of Chinese enterprises [28].

Core Viewpoint - The meeting between the company and the CEO of the Climate Organization focused on the development of renewable energy in China, the green certificate system, and potential business cooperation [1][2]. Group 1: Green Certificate System - The company showcased the green certificate service hall, highlighting the history of the National Renewable Energy Information Management Center and the green certificate trading platform, emphasizing the transparency and competitiveness of the Chinese green certificate system [1]. - The green certificate market in China is rapidly developing, with a projected trading volume exceeding 446 million in 2024, surpassing all previous transactions before 2023, and nearly 200 million traded in the first quarter of this year [2]. Group 2: International Cooperation - The CEO of the Climate Organization expressed gratitude for the company's efforts in promoting the unconditional recognition of Chinese green certificates under the RE100 initiative and acknowledged the importance of the green certificate market for achieving 100% renewable energy goals [4]. - The company anticipates that the full recognition of Chinese green certificates by RE100 in 2025 will significantly impact the market, leading to increased procurement from multinational and supply chain companies [2].

Core Viewpoint - The global green electricity consumption initiative RE100 has fully recognized China's green certificate system, which is expected to accelerate the green transformation of numerous enterprises and marks a significant step in the global renewable energy transition [1][2]. Group 1 - The RE100 initiative, launched by the Climate Group, includes approximately 430 large companies committed to using 100% renewable electricity [1]. - The recognition of China's green certificate system allows both Chinese enterprises and international RE100 members to confidently adopt green certificates, facilitating the verification of renewable energy procurement [1]. - The green certificate serves multiple purposes: it acts as an "identity card" for renewable energy, a "commitment letter" for corporate responsibility, a "pass" against international trade barriers, and a "value-added card" for enhancing corporate image and product competitiveness [2]. Group 2 - China's green certificate system has been in place since 2017 and has evolved into a comprehensive lifecycle management system that includes registration, issuance, trading, application, and cancellation of green certificates [2]. - The system has been designed to be transparent, efficient, and effective across all stages, contributing to the growing acceptance of green electricity consumption [2]. - The event mentioned is the first stop of the "1+N" series of promotional activities for green certificates, indicating a structured approach to increasing awareness and implementation of the green certificate system [2].

Core Viewpoint - The unconditional recognition of China's green certificate by the RE100 initiative significantly enhances the authority, recognition, and influence of China's green certificate in the international community, boosting confidence in its consumption [1][4]. Group 1: Green Certificate Overview - The green certificate serves as the only proof of renewable energy's environmental attributes in China, with one unit equating to 1,000 kilowatt-hours of renewable energy [1]. - It acts as a "passport" for enterprises to address international trade barriers, while also enhancing their green revenue and product competitiveness [1]. Group 2: Applications of Green Certificates - Green certificates are utilized for green electricity consumption, supporting large events and enhancing corporate social responsibility disclosures [2]. - They also play a role in energy consumption accounting and carbon emission calculations, linking with carbon control systems [2]. Group 3: Market Development and Statistics - The green certificate market in China has rapidly developed, with significant purchases reported, such as over 73,000 certificates purchased by a company in the Yangtze River Delta, equating to 73 million kilowatt-hours of renewable energy [2]. - In the Guangdong-Hong Kong-Macao Greater Bay Area, green certificate transactions exceeded 1 million in the first quarter, accounting for three-quarters of the national total [3]. Group 4: International Recognition and Impact - The RE100 initiative's recognition of China's green certificate marks a new stage in its internationalization, with major international companies like BMW and Apple among the top consumers [3][4]. - This recognition is expected to accelerate the green transformation of numerous enterprises and enhance the green competitiveness of Chinese exports [4]. Group 5: Future Development Strategies - The National Energy Administration emphasizes the need to cultivate the market, stimulate demand, and promote mandatory consumption of green certificates to support the creation of green supply chains [5]. - There is a focus on establishing a standard system for green certificates and enhancing communication with RE100 to facilitate better service for Chinese enterprises [5].

Core Viewpoint - The event "China Green Certificate: Smoothly Connecting China to the World - Green Certificate Entering the Guangdong-Hong Kong-Macao Greater Bay Area" held in Shenzhen emphasizes the importance of green certificates in promoting renewable energy consumption and facilitating high-quality market development in China [2][4]. Group 1: Green Certificate Market Development - The green certificate serves as an "identity card" for renewable energy and a "commitment letter" for enterprises to undertake social responsibility, while also acting as a "pass" to address international trade barriers and enhance green revenue [4]. - In the first quarter of this year, the Guangzhou Power Trading Center's green certificate transactions exceeded 10 million, accounting for approximately three-quarters of the national total, with total green electricity transactions nearing 1.3 trillion kilowatt-hours, surpassing the total of the previous two years [4]. - To achieve high-quality development of the green certificate market, it is essential to stimulate demand, promote mandatory consumption, and support the establishment of a green industrial supply chain [4]. Group 2: Role of Southern Power Grid - The Guangdong-Hong Kong-Macao Greater Bay Area is a load center for Southern Power Grid, with a clean energy supply structure being established, where renewable energy capacity has exceeded 200 million kilowatts [6]. - Southern Power Grid has achieved a non-fossil energy electricity ratio of 55% and is actively promoting the issuance of green certificates across the network [6]. - The green certificate market is being enhanced through policy promotion and demand matching, with a notable trend of "green electricity from the West to the East" [6]. Group 3: International Recognition and Impact - The RE100 initiative, which includes around 430 large enterprises committed to 100% renewable electricity, has fully recognized China's green certificate system, facilitating easier verification for both Chinese and international companies [7]. - The recognition of China's green certificates by international enterprises like BMW and Apple enhances the credibility and demand for these certificates, thereby increasing the green competitiveness of Chinese export enterprises [9]. - The event highlighted the significant role of China's green certificate in the global renewable energy transition, marking a crucial step forward [7][9]. Group 4: 2024 Green Electricity Consumption Report - The event released the 2024 Guangdong-Hong Kong-Macao Green Electricity Consumption Report and a TOP100 enterprise list, showcasing the market's development and the active participation of various stakeholders [11]. - A total of 40 billion kilowatt-hours of green electricity transaction intentions were reached during the signing ceremony, indicating strong market engagement [11]. - Discussions on the application of green certificates in global supply chains, carbon accounting, and green finance were held, contributing to the high-quality construction of the green certificate market [11].

Core Viewpoint - The event "China Green Certificate: Smooth Sailing in China, Moving Towards the World" marks a significant step for China's green certificate system, showcasing its development and international recognition, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area [1][9][10]. Group 1: Market Development - The Guangdong-Hong Kong-Macao Greater Bay Area is recognized as a key driver for economic growth and a pioneer in cultivating the green certificate market, with expanding coverage and record trading volumes [2][3]. - The cumulative trading volume of green certificates in the Greater Bay Area reached 1,329 billion kilowatt-hours, with an average growth rate of 10 times, and is projected to reach 491 billion kilowatt-hours in 2024, marking an 11-fold year-on-year increase [3]. - The region's green electricity trading achieved a remarkable start in Q1 2025, with a trading volume of 780 billion kilowatt-hours, a 16-fold increase year-on-year, accounting for 39% of the national trading volume during the same period [3]. Group 2: Energy Supply and Consumption - The development of the green certificate market is supported by a robust supply of green energy, with the installed capacity of renewable energy in the Greater Bay Area exceeding 200 million kilowatts, making it the largest power source for the Southern Power Grid [4]. - The Southern Power Grid delivers over 2,000 billion kilowatt-hours of electricity to the Greater Bay Area annually, with non-fossil energy accounting for 55% of its total energy supply [4]. - The diversity of consumption participants in the green certificate market is notable, with over 3,000 entities involved in green electricity consumption in 2024, driven by energy-saving policies and the green transformation of supply chains [6]. Group 3: International Recognition and Impact - The global recognition of China's green certificate by the RE100 initiative is a pivotal moment, allowing both Chinese enterprises and international partners to confidently adopt green certificates for renewable energy procurement [9][10]. - This recognition enhances the competitiveness of Chinese enterprises in the global market, particularly in light of international carbon trade regulations, and supports their green transformation efforts [11]. - The comprehensive acknowledgment of China's green certificate system signifies its alignment with international standards and its emerging global status [10]. Group 4: Future Directions - The green certificate market is transitioning to a new phase focused on high-quality development driven by demand, with a dual mechanism of mandatory and voluntary consumption to stimulate market vitality [12]. - Green certificates are evolving from mere proof of green electricity consumption to essential tools for corporate green transformation and carbon reduction [12]. - The successful implementation of the green certificate system in the Greater Bay Area serves as a replicable model for broader market development, contributing to global sustainable development efforts [14].

Core Insights - The event "China Green Certificate: Smoothly Connecting China to the World" was held in Shenzhen, where the global green power consumption initiative RE100 fully recognized China's green certificate, leading to a green certificate and green electricity trading intention of 40 billion kilowatt-hours [1][3] Group 1: Green Certificate System - China has established a comprehensive green certificate system that covers all aspects, ensuring transparency and efficiency in the process [1] - The Guangdong-Hong Kong-Macao Greater Bay Area is identified as a pioneer in cultivating the green certificate market [1] - In the first quarter of this year, the Guangzhou Power Trading Center's green certificate transactions exceeded 10 million, accounting for approximately three-quarters of the national total [1] Group 2: Energy Supply and Transition - The Southern Power Grid has become a model for green development and energy transition, with a clean energy-based power supply structure [2] - The installed capacity of renewable energy has surpassed 200 million kilowatts, making it the largest power source for the Southern Power Grid [2] - Non-fossil energy now accounts for 55% of the total electricity supplied by the Southern Power Grid [2] Group 3: International Recognition and Corporate Participation - The RE100 initiative, which includes around 430 large companies committed to using 100% renewable electricity, has unconditionally recognized China's green certificate [2] - International companies such as BMW, Apple, and BASF are among the top consumers of China's green electricity [2] - The recognition of China's green certificate by the RE100 initiative enhances confidence in green certificate consumption within China [3]

Group 1 - The "RE100 fully recognizes China's green certificate" event signifies the transition of China's green certificate from local practice to international standards, enhancing its authority and recognition globally [1] - In the first quarter of this year, Shenzhen's green electricity trading volume reached 883 million kWh, a year-on-year increase of 233%, accounting for 31% of Guangdong Province's total green electricity trading volume, maintaining the top position in the province [1] - The trading volume of green certificates in Shenzhen reached 10.33 million, equivalent to 10.33 billion kWh, ranking first among southern regions including Guangdong, Guangxi, Yunnan, Guizhou, and Hainan [1] Group 2 - The "Green Electricity Accompanies Me" event, held at the Lianhua Mountain Super Charging Station, marked the first initiative to promote green electricity consumption among electric vehicle owners, with 223 vehicles charged and a total of 4,372.4 kWh of green electricity consumed [2] - The Shenzhen Green Electricity and Green Certificate Service Center, established as the first government-authorized center in the country, aims to support enterprises in enhancing their green competitiveness [2] - The event facilitated the signing of green electricity and green certificate purchase agreements, resulting in a transaction of 40 billion kWh of green electricity and green certificates [2]

Group 1: Carbon Neutrality Initiatives - RE100 has unconditionally recognized China's green certificate, enhancing its international authority and credibility, which is expected to boost confidence in the consumption of Chinese green certificates [2] - The recognition is anticipated to increase the willingness of RE100 member companies and their supply chains to purchase and use Chinese green certificates, thereby expanding demand [2] - The establishment of a comprehensive green certificate system in China is highlighted, with a call for accelerating international mutual recognition of green certificates [2] Group 2: Water Ecological Protection - The State Council has initiated a beautiful rivers and lakes protection and construction action, emphasizing the need for precise pollution control and a comprehensive ecological governance system [3] - The focus is on source governance, monitoring, and preventing pollution from industrial, domestic, and agricultural sources [3] - Companies are encouraged to implement pollution prevention measures and utilize technology for long-term monitoring and management [3] Group 3: Energy Storage Safety Management - A new policy for the safety management of electrochemical energy storage has been issued, focusing on enhancing the inherent safety of battery systems and improving safety standards [4] - The policy outlines responsibilities for safety supervision and emphasizes inter-departmental collaboration and information sharing [4] - Companies are advised to prioritize compliance with safety standards and engage in third-party testing to improve quality control [4] Group 4: Renewable Energy Regulations - The "Beijing Renewable Energy Development and Utilization Regulations" came into effect, supporting Beijing's green and low-carbon energy transition [5] - The regulations cover various renewable energy sources and aim to establish a legal framework tailored to the needs of a megacity [5] - The regulations promote increasing the share of renewable energy in consumption, encourage technological innovation, and support local industry development [5] Group 5: Biofuel Export Licensing - Jiaao Environmental Protection has become the first company in China to receive an export license for bio-jet fuel, allowing it to produce 372,400 tons annually by 2025 [6] - The approval signifies a regulatory move towards standardizing the export of bio-jet fuel, which is crucial for the aviation industry's carbon reduction goals [6] - The support from policies indicates a growing emphasis on the dual value of bio-jet fuel in resource recycling and carbon reduction [6]