China Carbon Weekly Market Update – Mar 21, 2022

Week at a glance

• Activity on China’s national Carbon Emissions Allowance (CEA) market recovered from the previous week’s low to 354,969 tons. Block trades have also returned from the previous week’s absence to sizable volumes on two of the five trading days, totaling 340,656 tons. However, with low volumes remaining, prices for open market transactions changed little throughout the week, closing 0.69% up from the previous week to 58.00 yuan/ton ($9.12/ton). The total volume-weighted average price for the week decreased by 2.81% from the previous week to 55.56 yuan/ton ($8.73/ton).

• Activities across the nine China certified emission reductions (CCER) markets increased a substantial 53% from the previous week to a combined total volume of 475,823 tons. Tianjin led the markets, accounting for 51% of the weekly total volume.

• On March 15, The Ministry of Ecology and Environment (MEE) issued a notice to provincial level environmental agencies requesting the submission of the 2021 Annual GHG Emissions Report from key power generation entities according to the Administrative Measures for Carbon Emission Trading (Trial), the governing regulation for the National CEA Market. The submission deadline is March 31. The Notice also requires GHG emitting entities in 7 non-power generation industrial sectors to submit their 2021 GHG emissions reports and supporting documents by September 30. These 7 sectors include petrochemicals, chemicals, building materials, steel, non-ferric metals, paper, and civil aviation.