Inner Mongolia Energy Investment Group has completed its first certified carbon emission reduction (CCER) trade since China's voluntary greenhouse gas reduction market reopened, a move the company said marks a key step in its carbon asset market operations.

The group's power distribution and sales unit organized Changcheng Power Generation Co., Ltd. to purchase and settle 10,000 tonnes of CCER, according to China Energy News.

China's national carbon emissions trading market is set to expand from the power, steel, building materials and non-ferrous metals sectors to petrochemicals and chemicals, bringing roughly 80% of the country's carbon dioxide emissions under control. As a supplement to the mandatory carbon market, the CCER market provides a market-based incentive mechanism for reducing emissions and increasing carbon sinks.

Carbon emission allowance (CEA) and CCER prices have swung from a inversion to a reversal so far this year. The power distribution and sales unit tracked policy trends closely and guided affiliated units to adjust trading strategies. As of end-August, it had organized thermal coal power companies to complete trading plans covering more than 90% of the group's net compliance gap, significantly reducing overall compliance costs.

In the second half of the year, as the price gap between CEA and CCER returned to a reasonable range, the unit seized the market window to push through Great Wall Power Generation's first CCER spot delivery. The move expanded the group's carbon asset reserves, optimized its holdings structure and strengthened its ability to withstand two-way carbon price volatility.

Inner Mongolia Energy Investment Group plans to improve its carbon asset management system and build a professional operations team. While maintaining compliance, it will explore carbon swaps, carbon repurchases and other financial derivatives to tap the value of carbon assets and support China's "dual carbon" goals.