Weeks at a glance (January 9 – January 13, 2023) Activity on China’s national Carbon Emissions Allowance (CEA) market was nearly non-existent for the week, totaling a volume of only 500 tons that were evenly distributed across the 5 trading days. There was not any reason for the covered entities to engage with the market in the absence of any policy update or market news. Market prices remained stable amid thin volumes. Open market transaction prices closed the week at 55.50 yuan...
Monthly carbon market update (December 2022) Trading in China’s national carbon emissions allowance (CEA) market rose to its 2022 monthly high of over 26 million tons in the last month of the year. Block trades accounted for an overwhelming 95.8% of the volume, suggesting that many of these trades may be between subsidiaries of the same parent company for their internal end-of-year CEA balancing, as block trades have been thought to be the main trading method for intra-company transactions and...
Weeks at a glance (January 3 – January 6, 2022) After a flurry of activity over the last several weeks of 2022, China’s national Carbon Emissions Allowance (CEA) market started 2023 with a very quiet holiday-shortened week. The total volume for the week was only 5,491 tons, all of which were open-market transactions. Prices bounced off the 2022 low set in the previous week, closing the week 1.8% higher at 56.00 yuan/ton ($8.13/ton). The volume-weighted average price for all of the...
Weeks at a glance (December 26-December 30, 2022) Activity in China’s national Carbon Emissions Allowance (CEA) market subsided from the previous week’s 2022 record volume but still totaled nearly 4.9 million tons for the last week of the year, making it the second-highest weekly volume for 2022. The last two months of 2022 saw a burst of trading activity after the release of the draft CEA allocation plan by the MEE. These two months combined to account for over 66% of the 2022 annual...
Weeks at a glance (December 19-December 23, 2022) Activity in China’s national Carbon Emissions Allowance (CEA) market jumped to a 2022 high, totaling more than 18 million tons for the week. Nearly all of this weekly volume came from block trades. It is likely that this surge of activity was due to covered entities carrying out internal CEA balancing for 2022. Market prices continued their recent steady downtrend. Open market transaction prices closed the week at 56.50 yuan/ton ($8...
Weeks at a glance (December 12-December 16, 2022) Activity in China’s national Carbon Emissions Allowance (CEA) market saw a strong week, totaling more than 2.5 million tons and registering the second-highest volume since mid-January. Eighty-eight percent of the weekly volume came from block trades. All market prices were lower than the previous week. Open market transaction prices closed the week at 57.00 yuan/ton ($8.16/ton), slightly lower than the previous week. The volume-weighted...
Weeks at a glance (December 5-December 9, 2022) Heading into the last few weeks of trading in 2022, China’s national Carbon Emissions Allowance (CEA) market continued to cool down from the recent burst of activity in mid-November after the release of the draft CEA allocation plan for the 2021-2022 compliance cycle. The total weekly volume for the week was 324,110 tons, slightly above the median of 321K tons for all past weekly volumes. Open market transaction prices remained stable...
Monthly carbon market update (November 2022) Trading in China’s national carbon emissions allowance (CEA) market jumped in November on the back of the release of the Implementation Plan for the Determination of the 2021 and 2022 China Emission Allowances Caps and their Allocation (the Power Generation Sector), Draft for Public Comment (the Draft Plan) by the Ministry of Ecology and Environment on November 3. Now with a clearer view of their CEA demand or surplus, market participants, i.e., the...
Weeks at a glance (November 28-December 05, 2022) Activity in China’s national Carbon Emissions Allowance (CEA) market cooled down from the previous week’s 11-month high but still totaled over 1.3 million tons for the week. Both open market transactions and block trades saw healthy volumes, well above their respective historic medians. Open market transaction prices remained stable throughout the week, closing at 57.69 yuan/ton ($8.18/ton), slightly lower than the previous week. The...
Weeks at a glance (November 21-November 25, 2022) Activity in China’s national Carbon Emissions Allowance (CEA) market jumped again off of the previous week’s 10-month high, totaling nearly 3.5 million tons for the week. Open market transactions and block trades were both active, with volumes above or near the 90th percentile of both their historic records. Open market transaction prices remained stable throughout the week, closing at 57.80 yuan/ton ($8.10/ton), slightly higher than the...