China Carbon Market Weekly Update – 10 April 2023

Weeks at a glance (April 3 – April 7, 2023)

  • Activity on China’s national Carbon Emissions Allowance (CEA) market dropped substantially from the previous week during a four-day trading week shortened by the Qingming Holiday, closing the week with a weekly total volume of 410,247 tons.  Block trades accounted for over 97% of the total volume, slightly above its historic medium. Open market transaction prices lowered markedly. The closing price for the week was 55.40 yuan ($8.05) per ton, 1.1% lower than the previous week; however, the volume-weighted price for the week dropped to 50.63 ($7.35), 10% lower than the previous week, and its lowest since late December 2021. Supported by the price recovery of block trades, the volume-weighted price for all of the week’s trades was 55.96 yuan ($8.13) per ton, 11.5% higher than the previous week.
  • Activity across the nine regional China Certified Emission Reductions (CCER) markets declined for the third week in a row, ending the week with a combined weekly volume of 61,998 tons. Tianjin led the markets again, accounting for nearly 60% of their combined volume. Meaningful CCER credit price information was available from the Sichuan and Shenzhen markets. Both markets, although fluctuating widely, maintained a sizable CCER price premium over their national CEA counterpart based on the volume-weighted average prices for open market transactions.
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