Research on Carbon Emission Quota Allocation Scheme under “Double Carbon” Target: A Case Study of Industrial Sector in Henan Province

Abstract

Abstract To achieve China’s “Double Carbon” target, each region needs a fair, effective, and economically viable quota allocation scheme. Therefore, this paper takes the industrial sector of Henan Province as an example and explores the allocation scheme of peak carbon emissions among its 40 subsectors. The results show that: (1) The predicted total quotas for the industrial sector in Henan Province at carbon peak is 163.74 Mt. (2) The reallocation scheme proposed in this paper takes into account fairness, efficiency, and economy principles, and is the most feasible scheme. (3) Transferring quotas to subsectors with lower carbon intensity and higher marginal abatement costs can help improve the overall efficiency of the allocation scheme. We innovatively propose a scenario prediction method for the total quotas and systematically quantitatively evaluates the fairness and economy of the scheme. Policy suggestions are also made for implementing the scheme. The purpose of this paper is to solve how to formulate a fair and effective quota allocation scheme and clarify its feasibility. By quantitatively determining a quota allocation scheme that meets the actual development needs of the industrial sector in Henan Province, this paper also provides a reference for other regions to achieve fair and effective quota allocation.