Guangdong carbon market closes higher

GUANGZHOU, Dec. 15– Carbon emission allowances closed at 64.53 yuan per tonne on Friday, 0.4 percent up from Thursday, at Guangzhou Emissions Exchange, the largest local carbon market in China. The carbon market in Guangdong covers all companies whose annual carbon dioxide emissions surpass 10,000 tonnes from the province, except those in Shenzhen, which has a…

GUANGZHOU, Dec. 15 (Xinhua) — Carbon emission allowances closed at 64.53 yuan (about 9.09 U.S. dollars) per tonne on Friday, 0.4 percent up from Thursday, at Guangzhou Emissions Exchange, the largest local carbon market in China.

A total of 15,315 tonnes of allowances were transacted on Friday, with a turnover of about 988,293 yuan.

The allowances, officially known as Guangdong Emissions Allowances (GDEA), are carbon dioxide emissions caps assigned to companies. Firms whose emissions surpass their share must buy extra quotas from authorities or purchase unused quotas on the market from those that cause less pollution.

Since its opening in December 2013, the market has traded about 223.26 million tonnes of GDEA, with a total turnover of nearly 6.32 billion yuan.

On Friday, the market also traded 199 tonnes of China Certified Emissions Reductions (CCER), which are companies’ voluntary reduction of emissions achieved via means such as afforestation or employing clean energy technologies.

The carbon market in Guangdong covers all companies whose annual carbon dioxide emissions surpass 10,000 tonnes from the province, except those in Shenzhen, which has a separate market. So far, 200 enterprises in sectors of steel, cement, petrochemicals, paper making and aviation have been included.

Activities on the market are reflective of the industry’s emissions control cost in Guangdong, a manufacturing powerhouse and big energy consumer in China. Enditem