China Carbon Watch: Volume Surges as Market Set to Expand
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Trading in China’s national carbon emission allowance (CEA) market reached 17.2 million tons in the third quarter, the highest quarterly total this year, while September posted 7.8 million tons, the highest of any month in the first three quarters.
Among the three available CEA vintages, the 2022 vintage dominated trading, accounting for 80% of all trades in the quarter. The 2021 vintage covered 15.8% of the total volume, while the 2019-20 vintage made up the remaining 4.2%.
The increased activity in September could be attributed to a speech by the minister of ecology and environment (MEE) early in the month and the subsequent publishing of a draft plan confirming the inclusion of the cement, steel and electrolytic aluminum sectors in the national emission trading system (ETS) with 2024 as the first compliance year and 2025 as the corresponding allowance submission year.
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- China's carbon emission allowance market hit 17.2 million tons in Q3, with September reaching 7.8 million tons.
- The 2022 CEA vintage dominated trading with 80% share, while 2021 and 2019-20 vintages covered 15.8% and 4.2% respectively.
- CEA prices fluctuated, dipping to 80 yuan due to market dynamics and rising to over 100 yuan following sector inclusion announcements, closing the quarter at 100.07 yuan per ton.
- MetaVerse Green Exchange
- MetaVerse Green Exchange is a Singapore-based platform. Bai Bo serves as its executive chairman. The exchange is likely involved in environmental markets, given the context of the article focused on China's carbon emission allowance trading.
- Late April 2024：
- CEA prices were well over 100 yuan per ton
- Mid-July 2024：
- CEA prices dropped to lows around 80 yuan per ton
- Early September 2024：
- The minister of ecology and environment made a speech and a draft plan was published confirming the inclusion of the cement, steel, and electrolytic aluminum sectors in the national ETS
- Late September 2024：
- A surge in China's equity markets further pushed CEA prices up
- End of Third Quarter 2024：
- Trading in China's CEA market reached 17.2 million tons, the highest quarterly total for the year, with prices closing at 100.07 yuan per ton
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