China's carbon market traded 11 billion yuan in two years

The national carbon emissions trading market is one of the core policy tools to achieve the goal of carbon peak and carbon neutrality. At 9:15 on July 16, 2021, the launching ceremony of the national carbon market was held simultaneously in Beijing, Shanghai and Wuhan, and the high-profile national carbon market was officially launched for trading. According to previous plans, during the 14th Five-Year Plan period, China's eight high-emission industries - thermal power, building materials, iron and steel, nonferrous metals, petrochemicals, chemicals, paper and aviation - will be gradually and orderly included in the carbon market.

It has been the second anniversary since the opening of the national carbon emission trading market on July 16, 2021. Data show that as of the 16th, the cumulative trading volume of the national carbon market in the past two years was 240 million tons, with a cumulative turnover of 11.030 billion yuan, and the price increased by 25% from the opening price on the first day.

Statistics show that the trading volume of the first compliance period of the national carbon market was concentrated at the end of 2021, and the trading volume in November and December of that year accounted for nearly 90% of the total annual transaction volume, indicating that the national carbon market still has obvious seasonality.

From the perspective of trading prices, there is a steady and rising trend. Taking the closing price on July 14 as an example, the price on that day was 60 yuan/ton, up 9% from the first trading day of the year and 25% higher than the 48 yuan/ton on the first day of the national carbon market.

On the occasion of its second anniversary, the national carbon emissions trading market will usher in expansion. In June this year, the first working meeting on the inclusion of the steel, petrochemical and building materials industries in the national carbon market was held one after another. Subsequently, the second working conference on the inclusion of the steel industry and the petrochemical industry into the national carbon market was held one after another, and it was proposed to complete the preliminary plan for the integration of the two major industries into the national carbon market as soon as possible.

TF Securities said that if the carbon trading market expands to eight industries such as building materials, iron and steel, and non-ferrous metals in the future, the total carbon emissions will reach 7 billion tons/year to 8 billion tons/year.

Brokers are actively involved in carbon emissions trading. The reporter noted that in the first quarter of this year, a number of securities companies have participated in carbon emission rights trading and obtained no objection letters from the CSRC, including CICC, Orient Securities, CSC, Shenwan Hongyuan, Huatai Securities, etc. The above-mentioned securities firms all said that in accordance with the requirements of relevant regulations and the requirements of the no objection letter, with the goal of serving the real economy, reducing the cost of emission reduction for the whole society, and promoting the transformation and upgrading of the economy to green and low-carbon, they will carry out carbon emission trading business in compliance and prudently, and incorporate relevant businesses into the comprehensive risk management system, do a good job in relevant risk management, and improve the internal management system.

In this regard, a person from the asset management department of a securities firm in the east told reporters, "In the process of carbon trading, securities firms can not only play the role of investors, directly participate in the carbon market, and obtain income through the purchase and sale of carbon quotas; It can also play the role of a broker, assist the buyer and seller to complete the transaction, and provide professional financial services and advice for the transaction of both parties. In general, the participation of brokers in trading will improve the liquidity of the carbon trading market and improve the effectiveness and efficiency of carbon trading. ”

From the perspective of institutional framework, with the promulgation of the Administrative Measures for Carbon Emissions Trading (Trial), management rules such as registration, trading and settlement, as well as technical specifications such as enterprise greenhouse gas emission accounting reporting and verification, the national carbon market operation framework has been basically established.