China Carbon Weekly Market Update – Nov 15, 2021

Week at a glance

  • increased by 38.9% to 2,740,012 tons, propelled by two strong days of block trades of over 1 million tons. Open market transaction prices ended at 42.66 yuan/ton ($6.69/ton), down slightly from the previous week. The total volume-weighted average for the week was up 1.41% to 42.20 yuan/ton ($6.61/ton), reflecting the closing price gap between block trades and open market transactions.
  • The total weekly volume of the China certified emission reductions (CCER) markets decreased by 56.3% from the previous week to 4,933,740 tons, after four weeks of strong rally. The Sichuan regional market again led the markets with a 37.7% share of the total volume, followed by Tianjin and Shenzhen at 23.0% and 18.4%, respectively.
  • The People’s Bank of China (PBOC) launched a lending facility on Nov. 8 to support the development of clean energy, energy efficiency and carbon emission reduction technology. Using a “loan first, then borrow” process, the facility will provide financial institutions with one-year term funds at an interest rate of 1.75%, covering 60% of the principal for loans provided by the financial institutions to eligible projects. Loans from the financial institutions to carbon emission reduction projects are to have interest rates comparable to the Loan Prime Rates (LPRs) of the same terms. The current one-year LPR is at 3.85%.
  • The U.S. and China took the world by surprise, issuing a Joint Declaration on Climate Actions at COP26 on November 10. The Declaration outlines three major collaboration areas between the two countries: carbon-free energy production, methane emission reduction, and the elimination of illegal deforestation.
Share this report