China Carbon Weekly Market Update – Dec 13, 2021

Week at a glance

• The total weekly trading volume on China’s national Carbon Emissions Allowance (CEA) market had another strong increase (80.2%) from the previous week, setting a fresh record of 25,527,056 tons, with block trades accounting for 85.1% of the total volume. The total volume-weighted average for the week was down by 3.77% to 39.91 yuan/ton ($6.27/ton)
• The total weekly volume of the China certified emission reductions (CCER) markets increased by 22.8% from the previous week to a fresh 2021 high of 26,395,392 tons, led by Beijing’s record volume, which was 138% higher than the previous week. Shanghai saw an average price decrease of 6.6% to 34.34 yuan/ton ($5.39/ton) for all trades, almost all of which were offline negotiated trades. In comparison, Beijing saw its average price for open market transactions increase by 9.0% to 39.20 yuan/ton ($6.15/ton).
• In a public speech, the Chairman of the Shanghai Environment and Energy Exchange (SEEX) indicated that non-ferrous metals and construction materials are the two additional industry sectors scheduled to be covered in the National CEA Trading System beginning in 2022.
• According to the East Money Information Co., as of December 6, China’s green bonds Issuance topped 33.45 billion Yuan ($5.25 b) in 2021, compared to 16.7 billion Yuan in 2020.