China Carbon Watch: Prices Jump to Record Highs as Year-End Deadline Looms

Published: Jan. 20, 2025 8:09 p.m. GMT+8

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Prices in China’s national carbon emission allowance (CEA) market set new records in the last quarter of 2024 as participants rushed to meet a looming year-end deadline.

In mid-October, the allowance allocation plan and submission schedule for 2023 and 2024 was released. The schedule set Dec. 31 as the deadline for compliance submission for 2023, giving the covered entities just over two months to determine their balances for the year — the shortest window since the CEA market was established in 2021.

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China's carbon emission allowance market saw record prices in late 2024 as entities rushed to meet a compliance deadline, with prices surpassing 100 yuan per ton for block trades.
The October-December quarter recorded the third-highest trading volume at 149.4 million tons and set new highs for open trade prices and volumes.
Active trading in December drove block and open trades' values to 12.1 billion yuan and 2.5 billion yuan, respectively, with 2023 allowances dominating 68.6% of trade volume.

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Who’s Who

MetaVerse Green Exchange: MetaVerse Green Exchange is a Singapore-based entity mentioned in the article, with Bai Bo serving as its executive chairman. The exchange is likely involved in trading and market activities related to carbon emissions, though specific details about its operations or role are not further elaborated in the provided content.

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What Happened When

Mid-October 2024：: The allowance allocation plan and submission schedule for 2023 and 2024 was released, setting Dec. 31, 2024, as the deadline for compliance submission for 2023.

First two weeks of November 2024：: 2023 vintage allowances became available, leading to a spike in weekly average price for block trades, exceeding 100 yuan for two consecutive weeks.

November 2024：: Saw the highest-ever volume-weighted average price for open trades at 103.98 yuan per ton.

November 28, 2024：: Open trade prices reached a record intraday high of 110 yuan per ton.

By December 2024：: Trading values for both open and block trades reached all-time quarterly highs at 2.5 billion yuan and 12.1 billion yuan, respectively.

December 2024：: New records were set for the volume-weighted average price for block trades and all trades at 97.91 and 98 yuan per ton, respectively.

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