China Carbon Weekly Market Update – Sep 27, 2021

Week at a glance

  • Over the holiday-shortened trading week, China’s national carbon emissions allowance (CEA) market saw a substantial drop-off of trading volume from the previous week but had a slightly higher closing price. The CEA market ended the three-day trading week with a total volume of 11,572 tons, down 63.9% from the previous week. Block trades were again absent. Prices for open market transactions closed the week up 2.14% to 44.36 yuan/ton ($6.86/ton), while the volume-weighted average price was down slightly to 43.84 yuan/ton ($6.78/ton).
  • The total weekly volume of China certified emission reductions (CCER) increased 171.5% to 3,812,230 tons, led by an eight-fold increase on the Tianjin market. Markets in Shanghai, Chongqing, and Beijing are near their respective emissions allowance submission deadlines, with the former two seeing increased activities and Beijing having no activities at all.
  • China’s President Xi Jinping pledged to end construction of new coal-fired power plants outside China in his speech at the United Nations on September 21.
  • The Shanghai Environment and Energy Exchange announced its second regional CEA auction for the 2020 compliance year. The auction will take place on September 30 for 2 million tons of Shanghai regional CEA with a bid price floor set at 48.22 yuan/ton.
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