Shanghai (July 28, 2021) - Carbon Baseline, the leading digital solutions & consulting service provider sophisticated at carbon neutrality and green finance, was invited to the live studio of TrendBank. In the live broadcast, Rui Shan, co-founder & CTO of Carbon Baseline, shared his insights and solutions of Carbon Baseline for the development of hydrogen energy field under the background of Carbon Peaking and Carbon Neutrality.

In the field of carbon trading, Rui Shan believes that carbon neutrality will become China's top priority in the following decades, and it will have huge impact and influence on the production management and business logic of Chinese companies. "The traditional production model of Chinese companies are likely to be constrained by carbon credits, which are becoming a key production material."

At this present, China's carbon emission trading has officially opened. Under this influence, the competitive landscape of energy-intensive industries will be optimized faster, and those high-quality enterprises with energy efficiency advantages are expected to benefit significantly from the incremental income of carbon assets. On the other hand, the Chinese government has issued policies to support the development of hydrogen energy industry. In the “Outline of the 14th Five-Year Plan”, hydrogen energy and energy storage are planned as future industries. With the deepening of carbon trading, hydrogen energy, as an important way to achieve emission reduction, will also enter a substantial stage of development.

Carbon market is bringing new opportunities for hydrogen energy technology. For example, in terms of hydrogen vehicle emission reduction, with reference to the methodology "CMS-048-V01: Emission reductions by electric and hybrid vehicles", it is estimated that if a car sells for $30,000 and the original profit margin is 5%, then when the carbon price is $15/ton, the profit margin will increase to about 7.9%. In addition, the carbon market will also improve the economics of hydrogen steelmaking projects.

Rui Shan also analyzed the coverage of global greenhouse gas carbon pricing, the global carbon tax mechanism, and the EU's import and export volume to China. He believes that China will be the country mostly affected by carbon tax and BTAs, and carbon credits will become the core element in determining the market competitiveness of products. In this regard, enterprises should analyze domestic and international market situation, develop corresponding emission reduction methodology, as well as for the applicable conditions, benchmark scenarios, emission reduction calculation, monitoring methods, etc.

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