China Carbon Weekly Market Update – 26 December, 2022

Weeks at a glance (December 19-December 23, 2022)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market jumped to a 2022 high, totaling more than 18 million tons for the week. Nearly all of this weekly volume came from block trades. It is likely that this surge of activity was due to covered entities carrying out internal CEA balancing for 2022. Market prices continued their recent steady downtrend. Open market transaction prices closed the week at 56.50 yuan/ton ($8.09/ton), 0.9% lower than the previous week. The volume-weighted average price for all of the week’s trades was 55.52 yuan/ton ($7.95/ton), nearly 2% lower than the previous week.
  • Activity across the nine China Certified Emission Reductions (CCER) markets increased strongly from the previous week, in tandem with the national CEA market and totaling 173,131 tons for the week. The Tianjin market led the way for the increase with Shanghai also making a substantial contribution. The derived average price for Shanghai’s off-line negotiated trades surged to 84.15 yuan/ton ($12.05/ton), 38% higher than the previous week and 52% higher than the CEA’s average price for all trades.
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