China Carbon Weekly Market Update – Apr 4, 2022

Week at a glance (March 28 – April 1, 2022)

  • Activity on China’s national Carbon Emissions Allowance (CEA) market dropped 14.9% from the previous week to 69,615 tons. Block trades were absent for the second week in a row. Open market transaction prices closed the week at 58.50 yuan/ton ($9.19/ton), an increase from the previous week of less than 1%.
  • Activities across the nine China certified emission reductions (CCER) markets increased 46.9% from the previous week to a combined total volume of 184,561 tons. Sichuan again led the markets, accounting for 56.4% of the weekly total volume. At 80.67 yuan/ton ($12.68/ton) last week, volume-weighted average CCER price on the Sichuan market—which is currently the second most active CCER market—far exceeded all price records set on the national CEA market.
  • On March 30, the Ministry of Ecology and Environment (MEE) stated that inspection missions to 47 cities during the last two months of 2021 revealed some prominent quality issues in the mandatory carbon emissions reports submitted by covered entities in relation to CEA compliance. Several third-party service providers (e.g., technical consultants and data verifiers) were revealed to have either forged emissions data for covered entities or neglected verifying the reported data. The MEE is actively working with the Ministry of Justice to issue the Interim Regulation for the Management of Carbon Emissions Trading, in order to replace the Administrative Measures, the current regulatory basis for the national CEA market. With the Interim Regulation, more detailed requirements can be set for service providers and stiffer penalties can be imposed for violating the requirements.

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