China Carbon Weekly Market Update – 30 May, 2022

Week at a glance (May 23 – 27, 2022)

  • China’s national Carbon Emissions Allowance (CEA) market reached a total weekly volume of 551,351 tons, continuing the upward trend that began in the previous week.  Block trades again comprised the majority of the total weekly volume at 530,000 tons. Open market transaction prices hovered around the 59.00 yuan/ton ($8.81/ton) mark for the entire week, closing the week at that price. The volume-weighted average price for all of the week’s trades decreased 8.63% to 55.74 yuan/ton ($8.32/ton).
  • Activity across the nine China Certified Emission Reductions (CCER) markets increased substantially from the previous week to a combined total volume of 240,110 tons. Shanghai again accounted for most of the weekly total volume. Shanghai had an inferred average price of 45.00 yuan/ton ($6.72/ton) for all of its trades, unchanged from the previous week. The volume-weighted average price for all trades on the Sichuan market was 71.02 yuan/ton ($10.60/ton).
  • At a regular press conference on May 26, the Ministry of Ecology and Environment disclosed that since September 2021, the Ministry has conducted focused testing of real-time online carbon emissions monitoring at 119 monitoring points distributed among five industrial sectors including thermal power generation, steel, oil and gas, coal mining, and waste treatment. The testing proved that direct online monitoring could serve emission quantification and verification, particularly for the thermal power sector. It is conceivable that when fully tested and implemented, real-time and online measurement of carbon emissions could replace quantification calculations as the main emissions verification method for the National CEA market.
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