China Carbon Weekly Market Update – Sep 20, 2021

Week at a glance

• China’s national carbon emissions allowance (CEA) market saw continued pick-up of activities from the previous week while prices further trended down. Total volume increased fivefold to 32,090 tons with a continued absence of block trades. The weekly closing price decreased 1.3 % to 43.43 yuan/ton ($6.72/ton). The market appears to be waiting for financial traders to be allowed to participate and for clarity on the reopening of CCER project registration and credit trading.
• The total volume of China certified emission reductions (CCER) decreased 21.5% to 1,403,969 tons, while individual markets remained volatile. Price was lower for the Shanghai market, the only exchange with available information for the week. Sichuan saw the most volume while four out of the nine regional markets did not have any trade.
• China reiterated its push for including CCER credits in the national CEA market in a joint policy statement issued by the nation’s two top policy planning agencies, the General Office of the Chinese Communist Party and the General Office of the State Council. The statement cites in particular forestry, renewable energy, and methane utilization as the key areas of CCER sources.