China Carbon Weekly Market Update – Oct 18, 2021

Week at a glance

• In the first full week (Oct. 11-15) of trading since Sept. 17, China’s national CEA market saw a healthy weekly total trading volume of 498,093 tons, with block trades accounting for 77.4% of the total volume. Prices remained steady, with open market transactions closing slightly down from the previous week to 43.90 yuan per ton ($6.82/ton). Including block trades, the total volume-weighted average was nearly unchanged at 44.06 yuan per ton ($6.85/ton).
• The total weekly volume of China certified emission reductions (CCER) increased to 725,745 tons, but well below the recent range of 1.4 – 3.8 million tons.
• China’s State Council introduced multiple measures to combat a widespread power shortage. Among them are increasing coal production, deferring tax collection from some coal-fired power plants, allowing a wider band within which electricity prices can fluctuate, and a temporary exclusion of new consumption of renewable energy in total energy consumption calculations in the “Double Control” policy implementation. Xinhua News Agency reported on Oct. 14 that China’s recent daily output of coal had reached over 11.2 million tons, an increase of 800,000 tons over the level before Oct. 1, reaching its highest output since February.