China Carbon Weekly Market Update – 21 November, 2022

Weeks at a glance (November 14-November 18, 2022)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market jumped to a 10-month high, totaling nearly 1.2 million tons for the week, its highest since a flurry of trading activity around the first compliance cycle deadline at the end of 2021. Open market transaction prices were stable throughout the week, closing at 57.50 yuan/ton ($8.09/ton ), slightly lower than the previous week. Price volatility of the CEA market has been low in 2022, with a standard deviation of 0.95, 3.41, and 2.55 yuan/ton for the weekly closing price of open market transactions, the volume-weighted average price of block trades, and the volume-weighted average price of all trades, respectively.
  • Activity across the nine China Certified Emission Reductions (CCER) markets recovered from a CEA-era record low, ending the week with a weekly volume of 158,743 tons.  Tianjin and Sichuan led the markets, accounting for a combined over 96% of the national total volume. Meaningful CCER credit price information was available from the Sichuan, Shanghai, Beijing, and Shenzhen markets. All four markets have volume-weighted average prices at a premium over the CEA market.
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