China Carbon Market Weekly Update – 3 July 2023

Week at a glance (June 26 – June 30, 2023)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market decreased sharply from a three-day surge in the previous week, ending the current week with a total volume just shy of 500 thousand tons. However, this volume was still well above the 2023 year-to-date average of 320 thousand tons. Meanwhile, the closing price for open market transactions increased over 5% to a 12-month high of 60.00 yuan ($8.30) per ton. The volume-weighted average price for all of the week’s trades was 59.16 yuan ($8.18) per ton, marking an eleven-month high.
  • Activity across the nine regional China Certified Emission Reductions (CCER) markets increased to a combined total volume of 74,351 tons. Tianjin led the markets. Meaningful CCER price information was available from the Sichuan and Shenzhen markets. Both markets continued maintaining a price premium over their CEA counterparts. In a monthly press conference held on June 29, the Ministry of Ecology and Environment indicated that the ministry would “strive to launch the national CCER market at the earliest possible time in 2023”. The spokesperson revealed that the ministry has been working with other agencies to draft a trial version of the Administrative Rules on CCER Trading, along with regulation on the development, implementation, validation, and verification of emission reduction projects.  These rules and regulations will “soon be open for public comments.”
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