China’s carbon market sees price increase on Wednesday

Carbon emissions allowances closed at 49.36 yuan (approximately 6.93 US dollar) per ton on Wednesday at the Guangzhou Emissions Exchange, China’s largest local carbon market. This marked a 0.9 per cent increase from Tuesday’s closing price.

A total of 37,815 tons of allowances were traded, generating a turnover of about 1.87 million yuan on the same day.

The allowances, known as Guangdong Emissions Allowances (GDEA), represent carbon dioxide emissions limits allocated to companies. Companies exceeding their allocated quotas must either purchase additional allowances from regulatory bodies or buy unused quotas from companies with lower emissions.

Since its inception in December 2013, the market has facilitated the trading of over 226.52 million tons of GDEA, amounting to a total turnover of 6.52 billion yuan.

Attribution: Xinhua.