China Carbon Watch: Trading Slumps, but Prices Hit Record Highs

Activity in China’s national carbon emissions allowance (CEA) market tumbled in December, with 18.5 million tons changing hands — less than half the previous month.

But December’s total was still well above the 2023 median of 2.7 million tons. The market closed out the year with a total of 211.9 million tons traded.

Covering emissions from both 2021 and 2022, the second compliance cycle that ended last month saw a combined trading volume of 262.8 million tons, far surpassing the 178.8 million tons in the first compliance cycle, which covered 2019 and 2020.