As the first deadline for compliance in the national carbon market approaches, market liquidity has gradually increased. On December 3, the cumulative transaction volume of the national carbon market exceeded 2 billion yuan, and the daily transaction volume and transaction volume of CCER in many local pilot markets such as the Shanghai carbon market also hit record highs.
The number of controlled companies participating in the transaction is nearly three times that of the beginning of last month
According to the notice from the Ministry of Ecology and Environment, 95% of the country’s key emission units have completed their compliance before December 15 and all key emission units have completed their compliance before December 31. As the compliance period approaches, the liquidity of the national carbon market has gradually increased.
On December 3, the transaction volume of carbon emission allowances listed on the national carbon market was 788,345 tons, and the transaction volume of large-scale agreement transactions was 2,144,185 tons. The total transaction volume was 2,926,653 tons, and the total transaction volume was 120 million yuan.
This is the sixth consecutive trading day that the national carbon market has a single-day trading volume of more than 2 million tons. The Shanghai Environment and Energy Exchange stated that the number of key emission units currently participating in the transaction is nearly three times that of the beginning of last month. The transaction volume has been at a high level since November. The total volume of the previous four months.
“As all provinces and cities across the country have successively completed the approval and issuance of quotas, key emission units have gradually actively participated in transactions in accordance with carbon emission performance management requirements.” Shanghai Environmental Energy Exchange said.
On November 24, the Shanghai Municipal Bureau of Ecology and Environment issued a notice stating that Shanghai has fully completed the first compliance cycle quota approval and payment confirmation of the national carbon market for key emission units in the power generation industry, and took the lead in completing the quota issuance; on the same day, Hainan The Provincial Department of Ecology and Environment also issued a notice stating that Hainan Province has completed the allocation of carbon emission allowances for key emission units in the first compliance cycle of the national carbon emission rights trading market.
As of December 3, 2021, the cumulative trading volume of the national carbon market carbon emission allowances (CEA) was 51.3971 million tons, and the single-day trading volume in the past six trading days exceeded 100 million yuan. After the cumulative trading volume exceeded the 1 billion mark By one month, the cumulative turnover exceeded 2 billion yuan, reaching 2.184 billion yuan.
It is worth mentioning that at the same time as market liquidity and transaction volume have increased, the national carbon market transaction prices have maintained reasonable fluctuations, and the closing price of the past month has fluctuated slightly around 42-43 yuan/ton. According to the recently released December Fudan Carbon Price Index, the buying price of CEA in the national carbon market in December is expected to be 43.17 yuan/ton, and the selling price is expected to be 45.10 yuan/ton.
“With the increasing volume of transactions, according to the trading mechanism, the national carbon market prices are unlikely to change significantly.” An industry insider told the Securities Times reporter.
Shanghai Carbon Market CCER’s single-day trading volume and trading volume both hit record highs
Not only CEA, but with the approach of the national carbon market compliance period, the willingness of key emission units to trade CCER has increased significantly, and the activity of CCER trading has been increasing.
On December 3, the single-day trading volume of CCER in Shanghai carbon market exceeded 3 million tons, and the single-day trading volume exceeded 110 million yuan, setting a record high in single-day trading volume and transaction value since the launch of CCER in Shanghai carbon market. On the same day, the Beijing carbon market CCER’s online transaction volume was 336,254 million tons, and the offline agreement transfer transaction volume was 1.5169.6 million tons. This was the second consecutive trading day that the Beijing carbon market CCER volume exceeded one million tons.
According to the relevant rules of the national carbon market, companies that control emissions can use CCER to offset carbon emission allowances, and the offset ratio does not exceed 5% of the carbon emission allowances that should be paid. As various provinces and cities have successively completed the approval and issuance of quotas, companies with compliance requirements have purchased a certain percentage of CCERs to offset them.
According to data from the Shanghai Environmental Energy Exchange, in the past month, CCER trading volume in the Shanghai carbon market was close to 20 million tons, a record high in a single month in the Shanghai carbon market. As of December 3, the Shanghai carbon market had accumulated 158 million tons of CCER trading volume, ranking first among all pilot carbon markets in the country.
In terms of CCER prices, according to the Fudan Carbon Price Index in December, the purchase price of CCER used in Beijing and Shanghai for compliance in December is expected to be 39.00 yuan/ton, and the selling price is expected to be 41.57 yuan/ton; in December, the CCER used for compliance in Guangzhou is expected to be bought. The purchase price is expected to be 39.20 yuan/ton, and the selling price is expected to be 42.80 yuan/ton; the purchase price of CCER used in other pilot implementations in December is expected to be 37.93 yuan/ton, and the selling price is expected to be 39.80 yuan/ton.
From the above data, it can be seen that the CCER price in the local pilot market is expected to show an upward trend compared with the previous month, and the CCER price gap under the three categories is significantly narrower than the carbon price index in October. In this regard, the Center for Sustainable Development Research of Fudan University stated, “This may be due to the approach of the compliance period, especially as the national carbon market ushered in the first compliance period, CCER trading has become active and market liquidity has become stronger. The price of CCER in each pilot market tends to be consistent.”
The Shanghai Environmental Energy Exchange stated that in the next step, it will continue to do a good job in supporting the various services of CCER trading, a key emission unit in the national carbon market, and cooperate with the work related to the first compliance cycle of the national carbon market.
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