The third anniversary of the national carbon market: green transformation is accelerating and market vitality is significantly improved
July 16 marks the third anniversary of the launch of the national carbon emissions trading market.
According to the latest data from the Ministry of Ecology and Environment, as of July 15, the cumulative transaction of carbon emission quotas in the national carbon market has exceeded 460 million tons, with a cumulative transaction value of nearly 27 billion yuan, showing a good trend of stable market operation and significant improvement in vitality.
Since the official launch of the national carbon market on July 16, 2021, this policy tool has played a central role in promoting carbon peaking and carbon neutrality goals. Over the past three years, the national carbon market has continuously improved its market mechanism. By setting total carbon emission control targets and allocating them to participating enterprises in the form of emission quotas, the price of carbon quotas is used as an incentive to encourage enterprises to reduce emissions. Carbon prices have also steadily increased from more than 40 yuan/ton at the beginning of the opening session to around 90 yuan, and exceeded the historical high of 100 yuan/ton in some periods.
In terms of transaction volume and turnover, the national carbon market also showed significant growth. In 2023, the annual transaction volume of carbon emission quotas (CEA) in the national carbon market will reach 212 million tons, a three-fold increase from 2022. The annual transaction volume will be 14.444 billion yuan, and the average daily transaction volume will reach 875,800 tons. Market activity has increased significantly compared with previous years, and the role of the carbon price discovery mechanism has gradually emerged. Carbon prices have operated smoothly throughout the year without drastic fluctuations.
In terms of local carbon markets, although the overall activity needs to be improved, the average transaction price in some markets such as the Beijing Carbon Market is generally higher than that in other markets, with the highest average transaction price reaching 149.64 yuan/ton. Average transaction prices in markets such as Guangdong, Shanghai, and Shenzhen also increased steadily, demonstrating the positive role of local carbon markets in promoting regional green transformation.
The steady development of the national carbon market is inseparable from the continuous improvement of top-level design. In recent years, the Chinese government has gradually completed the construction of the dual-carbon "1+N" policy system represented by the "Opinions on Completely, Accurately and Comprehensively Implementing New Development Concepts and Doing a Good Job in Carbon Peak and Carbon Neutralization Work" and the "Carbon Peak Action Plan before 2030". Various government departments have issued implementation plans and support and guarantee plans for a number of key areas and industries, providing a solid policy foundation for the healthy development of the carbon market.
As the national carbon market gradually matures, various measures to further expand the coverage of the national carbon market industry are in full swing.
At present, the national carbon market mainly covers thermal power generation companies, but this year's government work report has clearly proposed to "expand the coverage of the national carbon market industry." The Ministry of Ecology and Environment is advancing in stages and steps. It is expected that more mature industries such as steel, building materials, etc. will be included in the national carbon market. On April 3, 2024, the Ministry of Ecology and Environment successively issued a draft for comments on carbon emission accounting, reporting and verification guidelines for the aluminum smelting industry and the cement clinker industry. The Beijing City Ecological Environment Bureau recently announced the list of emission units included in the national carbon market management in 2024, adding 7 new enterprises in key industries such as petrochemicals, chemicals, steel, building materials, and civil aviation, further proving that the expansion of the national carbon trading market is a foregone conclusion.
The healthy development of the carbon market not only promotes the green transformation of enterprises, but also drives investment and development in related industries. Many power generation companies have actively fulfilled their emission control responsibilities through measures such as building biomass power generation projects and optimizing coal-fired efficiency, achieving a reduction in overall energy consumption and a reduction in carbon dioxide emissions. Through carbon market transactions, these companies can not only obtain economic incentives, but also enhance their awareness and ability to save energy and reduce emissions. At the same time, the development of the carbon market has also spawned a group of professional carbon asset management institutions and service providers. They provide enterprises with services such as carbon asset management and carbon trading strategy formulation to help enterprises better adapt to the development of the carbon market.
