China Carbon Market Weekly Update – 13 February 2023

Weeks at a glance (February 06 – 10, 2023)

  • Activity on China’s national Carbon Emissions Allowance (CEA) market picked up meaningfully with a return of block trades for the first time in 2023, ending the week with a total volume of 109,310 tons. Prices for open market transactions started the week at the closing price of the previous trading week—56.00 yuan ($8.24) per ton—and remained unchanged for the entire week. The volume-weighted price for all of the week’s trades was 55.54 yuan ($8.18) per ton.
  • Activity across the nine China Certified Emission Reductions (CCER) markets was again relatively strong compared to the national CEA market, ending the week with a total volume of 128,681 tons. The volume-weighted weekly average price for the Sichuan market was 124.91 yuan ($18.40) per ton, propelled by a single 59,590-ton block trade that averaged 125.00 yuan per ton and made up most of the week’s volume on the market.
  • In a notification sent to 6 major Chinese securities firms, as announced by these firms in early February, the China Securities Regulatory Commission (CSRC) expressed no objection to these firms participating in carbon emissions allowance trading on domestic regulated exchanges. Although this no-objection greenlights the firms’ engagement with the national CEA market as far as CSRC is concerned, actual direct participation in the market is still not allowed by the market’s regulator, the Ministry of Ecology and Environment (MEE).
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