China Carbon Weekly Market Update – 3 October, 2022

Weeks at a glance (September 26– September 30, 2022)

  • Activity in China’s national Carbon Emissions Allowance (CEA) market remained depressed throughout the week, totaling a measly 1,000 tons that were evenly distributed over the five quiet trading days. Block trades were absent again for the fourth week in a row and the sixth time in the last seven weeks. An update from the MEE on the issuance status of the Interim Regulation for the Management of Carbon Emissions Trading did not give a clear signal to the market on the timing of the issuance.

Open market transactions started the week at 57.50 yuan/ton ($8.08/ton) and remained there until the end of the week.  The volume-weighted average price of all of the week’s trades was the same, and down 0.55% from the previous week.

  • Activity across the nine China Certified Emission Reductions (CCER) markets continued rising, totaling 295,896 tons for the week.  Since late August, Beijing has seen sizeable weekly volumes, an intriguing development considering the Beijing Green Exchange is the designated national CCER exchange.  Meaningful CCER credit price information was available from the Beijing and Sichuan markets. Beijing’s open market transactions of 3,410 tons had a volume-weighted average price of 80.03 yuan/ton ($11.25/ton), 39% higher than that of the CEAs. Sichuan’s small weekly open market trade volume of 247 tons averaged 66.85 yuan/ton ($9.39/ton), 16% higher than that of the CEAs.
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