China Carbon Weekly Market Update – Mar 28, 2022

Week at a glance

• Activity on China’s national Carbon Emissions Allowance (CEA) market dropped significantly from the previous week to 81,830 tons. The complete absence of block trades, which historically accounts for 83% of the total volume, resulted in another quiet week in the national market.

• Activity across the nine China certified emission reductions (CCER) markets also decreased substantially from the previous week to a combined total volume of 125,614 tons. Sichuan led the markets, accounting for nearly 80% of the weekly total volume.

• On March 23, the National Development and Reform Commission and the National Energy Administration jointly published the Mid- and Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035). The Plan establishes the government’s position that hydrogen-based energy is a key new strategic industry and a new growth point for building a green low-carbon industrial regime. The plan has set various stage goals for the hydrogen industry. These include renewable energy based production of 50,000 fuel-cell vehicles and 100,000 to 200,000 tons of hydrogen per year by 2025, and the establishment of a diverse application ecosystem of hydrogen energy by 2035.