China Carbon Weekly Market Update – Apr 11, 2022

Week at a glance (April 4 – April 8, 2022)

  • The Qingming-Holiday shortened trading week saw activity on China’s national Carbon Emissions Allowance (CEA) market rebounding somewhat from the previous week to 135,045 tons. Block trades came back on Friday from a two-week absence with a volume of 130,000 tons, accounting for nearly all of the week’s volume. Open market transaction prices closed the week at 59.99 yuan/ton ($9.42/ton), a 2.55% increase from the previous week, continuing the steady upward price trend seen in recent weeks. The volume-weighted average price for all trades was 57.11 yuan/ton ($8.97/ton) for the week.
  • According to a study published by the Tianjin Climate Exchange, the leading exchange for CCERs in 2022, there are currently three main sources of demand for the CCER: China’s National CEA market, the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), and the international voluntary carbon offsetting market. Cumulatively and combined, they will have a demand of about 4.1 billion tons of credits by 2030. On the supply side, taking into account potential new credit-eligible projects under conservative assumptions for credit quantification, in addition to existing registered credits and approved credit-eligible projects, cumulative CCER credit supply may be close to 4.3 billion tons by 2030, which is roughly equal to the estimated demand.

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