China Carbon Weekly Market Update – 29 August, 2022

Week at a glance (August 22 – August 26, 2022)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market further declined from the previous week to a total weekly volume of only 13,088 tons, with an absence of block trades for the second week in a row. The volume-weighted average price for all of the week’s trades was 58.77 yuan/ton ($8.52/ton), up 1.3% from the previous week.
  • Activity across the nine China Certified Emission Reductions (CCER) markets increased from the previous week, totaling 133,967 tons for the week. Shenzhen led the markets for the third week in a row, followed by Tianjin and Beijing. Meaningful CCER credit price information was available from the Sichuan market. The volume-weighted average price for all of Sichuan’s transactions was 58.99 yuan/ton ($8.55/ton) for the week, putting it nearly at parity with that of the CEAs.
  • In a notification to provincial-level environmental agencies released on August 19, the National Development and Reform Commission (the “NDRC”), the National Bureau of Statistics, and the Ministry of Ecology and Environment (the “MEE”) jointly issued the Implementation Plan for Accelerating the Establishment of a Unified and Standardized Carbon Emissions Accounting and Verification Framework (the “Implementation Plan”). The Implementation Plan aims to establish a standardized carbon emissions quantification and verification system that can be applied from the enterprise level all the way to the national greenhouse gases inventory. Such a system will have a far-reaching impact on China’s efforts to achieve its carbon neutrality goals through its CEA market, as well as voluntary carbon reduction actions by enterprises.
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