July 2023 marks the second anniversary of the start of trading in the national ETS. Since then, both liquidity and prices of China Emission Allowance (CEA) have increased significantly. We explain two recent drivers of the trend toward higher prices and more trading: the regulatory updates regarding banking and borrowing rules released on 17 July 2023, as well as the impending compliance deadlines for the national ETS. While the bullish trend will likely continue in the short term, the effective implementation of borrowing and banking rules will play a role in keeping up liquidity in the longer term.
Two years of transactions in China‘s national ETS July 2023 marked the second anniversary of the start of trading in China’s national ETS, whose allowance units (China Emission Allowance or CEA) have increased in value since then. Particularly in the last…
Veyt specialises in data, analysis, and insights for all significant low-carbon markets and renewable energy.
