China Carbon Weekly Market Update – Nov 29, 2021

Week at a glance

• The total trading volume on China’s national Carbon Emissions Allowance (CEA) market continued a strong upward trend with a rise of 37.6% to 7,131,454 tons. Open market transaction prices closed slightly down from the previous week at 42.85 yuan/ton ($6.70/ton). The total volume-weighted average for the week was up by 16.9% to 42.08 yuan/ton, making a strong recovery from the previous week’s unexpected dip.
• The total weekly volume of the China certified emission reductions (CCER) markets decreased to 9,625,133 tons but remained the highest of the year. Shanghai accounted for 64.9% of the week’s total volume, followed by Beijing and Guangdong at 14.2% and 9.8%, respectively. Shanghai saw an average price increase of 22.5% to 26.76 yuan/ton, recovering from a two-week slide.
• The Ministry of Ecology and Environment stated in a press conference on November 25 that local governments do not have the right to take ownership or restrict the trading of CCERs generated by project developers in their jurisdictions.
• The Ministry of Commerce published the Plan for High-Quality Foreign Trade Development during “the 14th Five-Year [Plan Period]”, calling for a tracking system for the life-cycle carbon footprints of international trade products.