Core Points - The Chinese government has announced a new round of national contributions to reduce greenhouse gas emissions, aiming for a 7%-10% decrease in total emissions by 2035 compared to peak levels, marking a significant milestone in climate change response [1] - The focus on controlling non-CO2 greenhouse gases has been integrated into China's carbon peak and carbon neutrality policy framework since the announcement of the "dual carbon" goals in 2020 [2] Group 1: National Policy and Goals - The new absolute reduction target for greenhouse gases includes all types of emissions, emphasizing the importance of controlling non-CO2 gases such as methane and nitrous oxide [1][2] - The government has issued various policies to strengthen the control of non-CO2 gases, including action plans for methane emissions and guidelines for greenhouse gas inventory compilation [3][4] Group 2: Implementation Strategies - A series of supporting policies have been developed, such as revising emission standards and implementing action plans for specific sectors like agriculture and industry to reduce greenhouse gas emissions [3][4] - The establishment of a carbon market that includes non-CO2 gases and the development of a national greenhouse gas emission factor database are part of the efforts to enhance emission control mechanisms [4] Group 3: Local Level Challenges and Recommendations - Local governments face challenges such as unclear emission data and inadequate policy frameworks for controlling non-CO2 gases [5] - Recommendations include improving data collection, developing localized policies, and implementing targeted emission control measures based on regional characteristics [5][6]

Investment Rating - The report maintains an "Outperform" rating for the industry [6] Core Insights - The establishment of the "1+6" rule system for the electricity market is a significant step towards unifying the national electricity market, addressing issues such as high cross-province transaction costs and inefficiencies in data transparency and settlement cycles [3][18] - The third batch of methodologies for voluntary emission reduction projects (CCER) has been initiated, focusing on expanding the coverage of reduction projects, particularly in biomass energy utilization and methane reduction in the oil and gas sector [4][24] Summary by Sections Market Review - From August 11 to August 15, the gas sector rose by 2.49%, the environmental sector by 1.77%, and the water sector by 0.29%, while the electricity sector fell by 1.04%. The Shanghai and Shenzhen 300 index increased by 2.37% [12][13] Industry Perspectives - The "Electricity Market Measurement and Settlement Basic Rules" were issued, marking the completion of the initial construction of the "1+6" rule system for the electricity market, which includes long-term, spot, and ancillary service rules [3][18] - The rules consist of 6 chapters and 56 articles, covering measurement management, settlement management, and supervision management, and aim to unify the national measurement and settlement processes [18][19] Investment Recommendations - The report recommends Jiangsu Guoxin in the thermal power sector, with cautious recommendations for Sheneng Co. and Zhejiang Energy Power. It suggests attention to Funiu Co. and Huadian International [4] - In the nuclear power sector, cautious recommendations are made for China Nuclear Power and China General Nuclear Power [4] - For the green electricity sector, it suggests focusing on Three Gorges Energy and Jiangsu New Energy, with cautious attention to Longyuan Power and Zhejiang New Energy [4] - In the hydropower sector, it recommends Changjiang Power and cautiously recommends Huaneng Hydropower and Qianyuan Power [4] - In the environmental sector, it recommends Yongxing Co. and Xuedilong, with attention to Huaguang Environmental and China Tianying [4]