China Carbon Weekly Market Update – Sep 6, 2021

Week at a glance

• Over the past trading week (Aug 30-September 3), the China National Carbon Emissions Allowance (CEA) Market saw a very significant drop in trading volume to only 658 tons of open market transactions and no block trades. Price of CEA continued a slight downward trend, closing at RMB 44.67/ton. Emissions allowance submission will be due on September 30 for the 2020 compliance year for entities covered under the Shanghai Emissions Trading System (ETS).
• The total trading volume for the China Certified Emission Reduction (CCER) credits across all 9 regional carbon/climate exchanges increased by 17.5% from the previous week, reaching more than 2.6 million tons of credit. Based on Guangdong exchange, weekly average price for compliance-eligible CCER and compliance-ineligible CCER were RMB 45.22/ton and RMB 12.18/ton, respectively. On August 29, the Beijing Green Exchange (BGE) announced the selection of 4 finalists for the contracts to build the national CCER registry and the trading platform.
• The Central Leading Group for Carbon Peaking and Carbon Neutrality Forms a Carbon Emissions Statistical Accounting Workgroup to accelerate the establishment of a unified and standardized carbon emissions statistical accounting system in China.
• China and the U.S. held “candid, in-depth, and pragmatic” climate talks in Tianjin amid geopolitical tensions between the two countries.