China Carbon Market Weekly Update – 28 August 2023

Week at a glance (August 21 – August 25, 2023)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market remained high, closing the week with 2.9 million tons of total volume, only slightly lower than the 2023 high reached in the previous week. Both open market transactions and block trades kept their high activity momentum that started in the last week of July. Open market transaction prices set fresh all-time highs for the fourth week in a row. The weekly closing price for open market transactions went up slightly from the previous week to a new all-time high of 73.06 yuan ($10.16) per ton, staying above the 70-yuan mark after breaking it for the first time in the previous week. The weekly volume-weighted average price for open market transactions also reached another new all-time high of 73.26 yuan ($10.19) per ton. The volume-weighted average price for all of the week’s trades was 61.91 yuan ($8.61) per ton, dragged down by much lower-priced block trades.
  • Activity across the nine regional China Certified Emission Reductions (CCER) markets went in the opposite direction of the national CEA market, decreasing further to 45,097 tons after reaching a three-month high two weeks before. Only Sichuan, Shenzhen, Beijing, and Shanghai saw some activity.  Meaningful CCER price information was available from all four markets. Shanghai, Beijing, and Sichuan maintained their respective price premiums over the national CEA market, while Shenzhen’s open market transactions traded with an average price discount.
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