China's national carbon market fell below 100 yuan/t  last week (December 16-20), dropping to the range of 97-98 yuan/t, with the intra-week high at 98.33 yuan/t on December 20.

During the week, the highest carbon price reached 100.69 yuan/t, while the lowest was 97.01 yuan/t. The market closed at 98.33 yuan/t on December 20, down 2.39% compared to the same day a week ago.

In the same period, the total trade volume of carbon emission allowances (CEA) in China's national market was 12.31 million tonnes, slumping 69.39% week on week, with the total value reaching 1.19 billion yuan, plummeting 70.04% on the week.

Specifically, trades of bulk agreement contracts were 9.08 million tonnes, valued at 880.24 million yuan, occupying the majority share of the trades, while that of listed agreement contracts reached 3.22 million tonnes, valuing 311.67 million yuan.

The lowest trading volume and value was registered on December 17, at 1.72 million tonnes and 164.56 million yuan respectively. The highest trading volume and value were recorded on December 18 and 19, at 2.78 million tonnes and 266.93 million yuan, respectively. On December 20, the trading value declined 50.01% from 496.43 million yuan a week ago.

In the year to December 20, China's CEA trades reached 182.04 million tonnes, with the value totaling 17.48 billion yuan. Total CEA trades since the market went online reached 623.67 million tonnes, which valued 42.40 billion yuan.

Policies in Focus

On December 18, the China National Government Offices Administration released a list of 53 green and low-carbon technologies, divided into six categories, including energy conservation, emission reduction, and resource recycling.

The solicitation and publicity of these technologies aim to promote green and low-carbon transition, improve resource utilization efficiency, and reduce carbon emissions in public institutions.

The China Energy Conservation Association hosted the 12th Energy Conservation and Low-Carbon Development Forum in Beijing on December 19. The forum brought together experts to share their insights on advancing energy structure optimization, improving energy utilization efficiency, and fostering innovation in green and low-carbon technologies.

The 2024 Corporate ESG (Environmental, Social, and Governance) Sustainability Conference was held in Beijing on December 21, where participants shared updates on their companies' progress and actively promoted the sustainable development of Chinese enterprises.

The carbon price in the EU Emissions Trading System (ETS) remained stable with slight fluctuations, while the UK ETS saw a decline due to domestic economic factors and policy adjustments. In contrast, the South Korean ETS experienced an increase.

UK ETS administrators announced they are actively discussing the expansion of the system to include the shipping industry and have solicited public feedback. The sector is expected to be incorporated into the system by 2026.

This week, China's CEA prices declined alongside a reduction in trading volume. Despite being in the peak compliance period, some companies remained pessimistic about future carbon prices, adopting a cautious buying approach and waiting for better opportunities.