China carbon prices at new high – financial institutions’ future entry into national market may further trigger bullish trend

While broad and lacking a specific timeline, a Chinese government document released on 12 October offers the strongest policy signal yet for financial institutions' participation in the national ETS. Combined with the upcoming compliance deadline at the end of 2024, we expect the prospect of financial institutions entering the market in the future to drive prices and volumes of China Emission Allowances in the coming months.