Highlight

On October 8, 2024, ESI had the pleasure of hosting a distinguished delegation from Fudan University. The delegation included Prof. WU Libo, Full Professor at the School of Economics and the School of Data Science, Vice Dean of the Big Data Research Institute, Fudan University, President of Shanghai Academy of AI for Science, and Dean of Shanghai Institute for Energy and Carbon Neutral Strategy; Associate Prof. Zhou Yang from the Institute for Big Data, Associate Prof. TANG Weiqi from the Fudan Development Institute and the Shanghai Institute of Energy and Carbon Neutrality Strategy, and Dr SHI Zhenyu, from Artificial Intelligence Innovation and Incubation Institute, Fudan University. They met with Prof. LEE Poh Seng, Executive Director of ESI, Dr. SU Bin, Senior Research Fellow and Division Head, and other ESI researchers. They organized a joint workshop on “Intelligent Strategies for Energy Transition and Climate Action”, chaired by Dr SU Bin and Prof WU Libo.

Yang Zhou, Associate Professor at Fudan University, opened the discussion with a presentation on "Who benefits from China’s rate-based carbon-electricity market?" He noted that most power generators would not be taxed, but the combination of low carbon costs and heterogeneous cost impacts introduces uncertainty in the market. Empirical results showed a strong correlation between coal prices and electricity prices, with a cost pass-through rate of 60% to 100%. High-efficiency generators benefit more from the current carbon market, while low-efficiency ones face greater tax burdens.

Following Zhou’s presentation, Weiqi Tang, Associate Professor at Fudan University, delivered a talk on "Synergistic control of greenhouse gases (GHG) and air pollutants under carbon market conditions." He emphasized the importance of integrating the control of greenhouse gases and air pollutants within carbon market frameworks. Tang highlighted feasible approaches to align economic efficiency with social welfare objectives in emission control. He also noted that this synergistic approach is particularly beneficial for promoting more balanced and sustainable efforts in climate mitigation and environmental protection, especially in developing countries.

Zhengyu Shi, Researcher at Fudan University, addressed the topic of "Inequalities in extreme temperature adaptation will amplify health losses." She highlighted that climate adaptation can significantly reduce temperature-related mortality across all wealth subgroups. However, significant wealth disparities remain in climate adaptation efforts. Revised estimates show that under the SSP2-45 and SSP3-70 pathways, these disparities are expected to widen, exacerbating unequal health outcomes related to extreme temperatures.

The final presentation was delivered by Sheng Zhong, Senior Research Fellow at ESI, on “Exploring ASEAN’s energy sector net-zero pathways from joint planning of electricity and hydrogen". He examined the potential for integrated electricity and hydrogen planning in ASEAN to facilitate the region’s transition to net-zero emissions. His analysis provided insights into how joint initiatives in energy planning could accelerate decarbonization while ensuring energy security in the ASEAN.

At the end of the workshop, participants engaged in friendly and in-depth exchanges, which sparked many new ideas. ESI and Fudan teams expressed their commitment to strengthening academic collaboration in the future, with plans for continued research and knowledge-sharing on these important topics.