UNAIR NEWS – The 7th International Conference and Ph.D. Colloquium for Economic and Business (ICEB) was officially held on Wednesday, September 4, 2023, at the Fajar Hall, the Faculty of Economics and Business (FEB), Dharmawangsa-B Campus Universitas Airlangga. Several academicians from various countries also attended this event. The conference discussed the Sustainability and Digital Transformation in Global Vulnerability.
Prof Grantley Taylor from the Curtin University Australia becomes the keynote speaker in the session. He spoke about China’s Emissions Trading Scheme and Digital Transformation. The Australian professor presented data on the entities of several countries that have digitized their systems to meet clean energy needs. This is evidenced by the reduction in per capita carbon dioxide emissions over the past 20 years.
Three Perspectives in the Digitalization Process
Furthermore, Prof. Grantley emphasized three important perspectives in the digitalization process. First, new technological innovations to reduce carbon dioxide emissions. Second, development of a digital financial platform for carbon trading based on stock prices or other contracts. Third, the implementation of Minimal Residual Disease (MRD) or monitoring, reporting, and verification of carbon dioxide emissions data.
“It can be very complex and it’s crucial to ensure that real and valid data available. All bureaus and departments overseeing the verification and reporting process can access the data properly and report it effectively,” said Prof. Grantley.
The Emissions Trading Scheme (ETS) initially only focused on coal, power plants, and industries in China.
“This includes around 2,200 entities initially. The goal is to expand to the petrochemical industry, aviation, and related heavy industries in the coming years. However, there is currently no specific timeline for this,” said the professor.
Large-scale enterprise
From a general perspective, digitalization is a large-scale enterprise. Therefore, industries based on a verified emissions framework need allowances.
In real-time monitoring, a robust data and information system is needed to ensure that the government and regulators are aware of who the emitters are, the quantity of carbon dioxide emissions, allocated allowances, and the gap between verified emissions and allowances.
“In terms of reporting, similar digital infrastructure is needed to ensure reporting deadlines. Interestingly, China’s ETS has a verification institution to verify the accuracy of data, and there is a tax study element within the code,” he said.
Prof Grantley believed that digitalization is crucial in the formation and development of China’s ETS. “In the end, the data and information of the ETS inspected by various departments and government agencies across provinces have truly driven this digitalization. Through verification of monitoring reports, it has been able to generate several innovations that can reduce carbon dioxide emissions,” he concluded.
Author: Aidatul Fitriyah
Editor: Binti Q Masruroh
