Jul 08, 2021 11:59 PM

Energy Insider: China to Kick off National Carbon Trading for Power Generation

In today’s Caixin energy news wrap: Coal prices are expected to remain high in the second half on strong demand, brokerage house says; China finishes its first batch of metal release from national reserves in a rare move to cool commodity prices; and the country’s national carbon trading is set to start.

National carbon trading for power generators to start

China will launch national carbon trading for power generation in July, the State Council said at a Wednesday meeting chaired by Premier Li Keqiang. The move is part of China’s efforts to roll out a nationwide carbon-trading market to reduce greenhouse gas emissions through market measures as the country strives to reach carbon neutrality by 2060.

China to roll out new lending tool to support green push

The State Council, China’s cabinet, proposed to set up monetary policy instruments to support carbon emissions reduction, a step toward the rollout of new financial tools to serve the country’s ambitious climate goals. Caixin learned that the new tool will take the form of relending quotas – loans from the central bank to commercial banks -- with preferential rates issued to qualified financial institutions to encourage their funding for clean energy and carbon reduction-related projects.

Coal price to surge more than 30% in 2021 on tight supply, report says

Coal prices in China this year are expected to be 30% to 40% higher than last year due to strong demand and tight supply, Citic Securities said in a recent report. Although coal production is expected to expand in the second half, rising demand will keep the prices at relatively high level, it said.

CNOOC signs 10-year LNG purchase agreement with Petronas

Malaysia's state oil firm Petronas has signed a 10-year liquefied natural gas (LNG) supply agreement with a subsidiary of China's offshore oil and gas major CNOOC Ltd. Under the deal, valued at about $7 billion, CNOOC will purchase 2.2 million tons per annum over the period.

China completes first release of metals from strategic reserves

The first round of China’s much-anticipated state metal reserves auctions has been completed as the government seeks to cool commodity prices by adding market supply. A combined 100,000 tons of copper, aluminum and zinc were sold through public bidding this week, according to the National Development and Reform Commission. The National Food and Strategic Reserves Administration will continue to release stocks soon to ease raw-material cost pressure on businesses.

Sinopec starts construction of 500,000-ton degradable plastics project

State energy giant Sinopec has officially kicked off the first phase construction of a polyglycolic acid project with annual capacity of 500,000 tons in Southwest China’s Guizhou province, the company said Wednesday. Polyglycolic acid, or PGA, is a new environmentally friendly degradable plastic product. The first phase of construction will complete facilities with 200,000 tons of capacity, with the remaining capacity to be built in the second phase.

CATL joins hands with Hong Kong utility Towngas for new energy development

China’s largest battery maker, Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ) and Hong Kong utility, Towngas, set up a strategic partnership to tap the renewable energy businesses. The parties said they will also explore cooperation in battery technology, semiconductor chips and joint investments in the energy space.

Contact editor Han Wei (

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