China Carbon Market Weekly Update – 24 July 2023

Week at a glance (July 17 – July 21, 2023)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market slipped further from the 2023 high set two weeks before to a weekly total volume of only 434 thousand tons. However, total, open transaction, and block trade volumes were all still well above their respective 2023 averages. On July 17, the Ministry of Ecology and Environment issued a notification for CEA submissions for the 2021 and 2022 compliance years. Among various operational rules for the submission process, the notification gives full compliance eligibility to the surplus CEAs from the 2019 and 2020 compliance years. The closing price for open market transactions reached an all-time high of 63.43 yuan ($8.88) per ton while their volume-weighted average price reached an 18-month high of 60.09 yuan per ton. The volume-weighted average price for all of the week’s trades was 58.50 yuan ($8.19) per ton, fractionally higher than the previous week.
  • Activity across the nine regional China Certified Emission Reductions (CCER) markets decreased again to a combined weekly volume of 20,756 tons, the second lowest of the year. Shanghai and Beijing led the markets, followed by Sichuan and Shenzhen. Shanghai, Beijing, and Sichuan all had a CCER price premium over their CEA counterparts.
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