China Carbon Market Weekly Update – Feb 21, 2022

Week at a Glance

China’s national Carbon Emissions Allowance (CEA) market had a very quiet week with a weekly total volume of 2,151 tons. Block trades were absent for the fourth week in a row. Open market transaction prices closed the week at 56.88 yuan/ton ($8.99/ton), a slight increase of 1.30% from the previous week, while the volume-weighted average open market price for the week was down by 3.18% to 56.64 yuan/ton. 

Activities across the nine China certified emission reductions (CCER) markets further decreased 6.6% from the previous week to a low total volume of 55,601 tons. Tianjin again led the markets. The Sichuan market saw a weekly average CCER price of 64.38 yuan/ton, topping all CEA price records, daily or weekly, set on the national CEA market. 

On February 15, led by the National Development and Reform Commission, the Ministry of Industry and Information, the Ministry of Ecology and Environment, and the National Energy Administration jointly published the Implementation Guidelines for Energy Conservation and Carbon Reduction for Key Sectors of High-Energy-Consumption Industries. The Guideline covers 17 key sectors. It sets the specific numerical target, for each of the 17 sectors, of the proportion of the total national production capacity that should achieve sector-specific “target energy efficiency level” by 2025. The 17 key industrial sectors include many from the building and construction, non-ferrous metals, and steel production industries. These three high-energy-consumption industries are widely expected to be covered next by the national CEA trading system.

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