Analysis and optimization of carbon trading mechanism for renewable energy application in buildings

In order to keep sustainable development, the Chinese government has issued series of policies to reduce CO2 emissions. Renewable energy technologies applied in building field, mainly including solar energy and geothermal energy technologies, are recommended because of advances of energy efficiency, environmental protection and economic sustainability. Carbon trading has been widely accepted as an effective market approach, but it hasn't covered the renewable energy application in building projects in China as yet. Reasonable solutions should be proposed to encourage building projects to participate in the carbon trading market. This paper aims at establishing a feasible mechanism to help improve the carbon market for renewable energy application in buildings. To attend this goal, this paper introduces and analyzes the status of carbon trading market and the position for building projects in China. By comparing the present mechanisms, Programmatic CDM with building portfolio is considered appropriate for building projects with renewable energy application. Volume verifying method, the core of the mechanism, is modified to fit the building projects. Then five different specific cases are studied to prove the practicality and reasonableness of the methodology. Programmatic CDM with modified verifying method is concluded as the proper mechanism for renewable energy application in buildings in carbon trading market.