China Carbon Market Weekly Update - 13 Jan 2025

Week at a Glance (January 6 – January 10, 2025)

• China's national Carbon Emissions Allowance (CEA) market was very quiet for the first full week of 2025, registering only 127.7 thousand tonnes. Block trades were absent for the second consecutive week. Absence of block trades is typically seen during periods of low market activity. Among the four CEA vintages, the 2023 vintage traded 67.5 thousand tonnes for the week, followed by the 2022 vintage at 58.4 thousand tonnes and the 2019-2020 vintage at 1.8 thousand tonnes.
• CEA open trades closed the week lower at 94.01 yuan ($13.08) per tonne, marking the ninth consecutive week of decrease from an all-time high of 105.11 yuan per tonne. The volume-weighted average price of all trades for the week was 93.82 yuan ($13.05) per tonne, 3.7% lower than the previous week.
• Activity across the nine regional China Certified Emission Reductions (CCER) markets remained nearly non-existent, ending the week with only 209 tonnes, the third consecutive week with less than five hundred tonnes of volume.

Carbon Market Update (January 6 – January 10, 2025)

China's national Carbon Emissions Allowance (CEA) market was very quiet for the first full week of 2025, registering only 127.7 thousand tonnes. Block trades were absent for the second consecutive week. Absence of block trades is typically seen during periods of low market activity. Among the four CEA vintages, the 2023 vintage traded 67.5 thousand tonnes for the week, followed by the 2022 vintage at 58.4 thousand tonnes and the 2019-2020 vintage at 1.8 thousand tonnes. The 2021 vintage, which has been in short supply ever since it was first distributed in 2023, did not see any trade.

Open trades closed the week lower at 94.01 yuan ($13.08) [1],[2] per tonne, marking the 9th consecutive week of decrease from an all-time high of 105.11 yuan per tonne. The volume-weighted average price of all trades for the week was 93.82 yuan ($13.05) per tonne, 3.7% lower than the previous week.

Activity across the nine regional China Certified Emission Reductions (CCER) markets remained nearly non-existent, ending the week with only 209 tonnes, the third consecutive week with less than five hundred tonnes of volume. Extremely low activity is expected to last until the first batch of new CCER is issued and traded on the Beijing Green Exchange where a national CCER market operates.

[1] 1 US$ = 7.1891 RMB, middle price, January 10, 2025, China State Administration of Foreign Exchange. The same exchange rate is used for all other values quoted in US dollars ($) in the newsletter.

[2] Starting with the 26 February 2024 issue, this newsletter calculates its own daily overall market closing price using the volume-weighted average of traded CEA vintages. This replaces the closing price reported by the Shanghai Environment and Energy Exchange (SEEE), which is an equal-weighted average of the closing prices of all three CEA vintages. The closing price reported by the SEEE does not reflect market reality due to the frequent and vast volume differences among the vintages on any given day. For the same reason, this newsletter also records the daily high and low prices of open market transactions using the highest and lowest prices of any of the three vintages that have trades on the day, instead of the equal-weighted averages of the highest and lowest prices of all three vintages as reported by the SEEE.

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