Group 1 - The national carbon emissions trading market in China has achieved a cumulative trading volume of nearly 700 million tons and a transaction value of approximately 48 billion RMB as of the end of August 2023, with the 2024 annual transaction value reaching a new high since the market's launch in 2021 [1] - In 2024, the carbon emissions trading market operated for 242 trading days, with an average daily trading volume of carbon emission allowances increasing by 43.55% compared to the previous compliance cycle, resulting in a total trading volume of 18.9 million tons and a total transaction value of 18.114 billion RMB, marking the highest level since the market's inception [1] - The carbon emissions intensity in the power sector decreased by 10.8% in 2024 compared to 2018, with the carbon market playing a significant role in this reduction [1] Group 2 - The national voluntary greenhouse gas emission reduction trading market has been introduced as an important policy tool to support the achievement of China's "dual carbon" goals, with the first batch of newly registered certified voluntary emission reductions starting trading in March 2025 [2] - As of the end of August 2023, the cumulative trading volume of the national voluntary greenhouse gas emission reduction trading market reached 2.7061 million tons, with a transaction value of 229 million RMB, and the average transaction price frequently exceeding 100 RMB per ton [2]

Group 1 - The national carbon market in China achieved a record high transaction value of approximately 48 billion RMB as of August 2024, marking the highest annual total since the market's launch in 2021 [1] - In 2024, the carbon emission trading market operated for 242 trading days, with an average daily transaction volume increasing by 43.55% compared to the previous compliance cycle, resulting in a total transaction volume of 1.89 million tons and a total transaction value of 18.114 billion RMB [1] - The carbon intensity of electricity generation in 2024 decreased by 10.8% compared to 2018, indicating the significant role of the carbon market in achieving emission reductions [1] Group 2 - The national voluntary greenhouse gas emission reduction trading market was launched as a key policy tool to support China's "dual carbon" goals, with the first batch of certified voluntary emission reductions starting trading in March 2025 [2] - As of August 2024, the cumulative transaction volume in the voluntary reduction market reached 2.7061 million tons, with a transaction value of 229 million RMB and average prices exceeding 100 RMB per ton [2] - The Ministry of Ecology and Environment plans to steadily expand the coverage of the carbon market, enrich trading varieties and methods, and enhance international cooperation in the carbon market sector [2]

Core Viewpoint - The issuance of the "Opinions on Promoting Green and Low-Carbon Transition and Strengthening National Carbon Market Construction" marks a new phase in China's carbon market development, aiming to enhance the green and low-carbon development mechanism and better utilize market mechanisms [1] Group 1: Carbon Market Development - The carbon market serves as a crucial policy tool for addressing climate change and accelerating the green transition of the economy and society [2] - China has established the largest national carbon emissions trading market globally, along with a voluntary greenhouse gas reduction trading market, creating a unique carbon market system [2][3] - The carbon price acts as a "barometer" reflecting the scarcity of carbon emissions resources, guiding capital flow towards low-carbon sectors and technologies [2][3] Group 2: Mechanisms and Flexibility - The carbon market provides a flexible mechanism for achieving greenhouse gas control targets at lower costs, allowing companies to choose compliance paths [3] - The national carbon emissions trading market will accelerate the transition to clean energy in key industries such as electricity, metallurgy, and cement, promoting decarbonization across supply chains [3] Group 3: Market Expansion and Coverage - The national carbon market is expected to cover approximately 70% of the total carbon emissions in major industries like electricity, steel, and cement, driving the development of new green market competitiveness [3] - The construction of a unified national carbon market requires standardized quota management, trading, regulation, and data management to enhance resource allocation efficiency [4] Group 4: Voluntary Emission Reduction Market - The national voluntary greenhouse gas reduction trading market is a vital component of the carbon market system, aimed at creating significant green market opportunities and supporting national contributions to global climate governance [5] - As of now, the voluntary reduction trading market has registered 5,635 accounts and 47 projects, with 23 projects officially registered, amounting to approximately 9.48 million tons of CO2 equivalent verified reductions [5][6] Group 5: Future Directions - The development of the voluntary reduction trading market is still in its early stages, with plans to focus on key technologies for carbon peak and neutrality, and to enrich market products and participants [6]

Group 1: Carbon Emission Allowance (CEA) and Certified Emission Reduction (CCER) Price Indices - The expected buy price for CEA in June 2025 is 68.36 CNY/ton, with a sell price of 74.78 CNY/ton, resulting in a midpoint price of 71.57 CNY/ton. The buy price index decreased by 12.77%, and the sell price index decreased by 9.54% [2] - The expected buy price for CCER in June 2025 is 82.84 CNY/ton, with a sell price of 92.74 CNY/ton, resulting in a midpoint price of 87.79 CNY/ton. The buy price index decreased by 3.37%, and the sell price index decreased by 6.18% [2] Group 2: Green Electricity Certificate (GEC) Price Indices - The price indices for GECs for 2024 and 2025 show an overall increase. The expected price for centralized projects in 2025 is 6.85 CNY/unit, with a price index of 124.55, while for distributed projects, it is 6.40 CNY/unit with a price index of 129.86 [3] - The price for biomass power generation GEC in 2025 is expected to be 6.16 CNY/unit, with a price index of 119.43. The price increases for 2025 production GECs are significantly higher than those for 2024 production [3] Group 3: Market Activity and Regulatory Developments - In May, the average closing price for CEA was 70.30 CNY/ton, down approximately 13% from April's average of 80.87 CNY/ton. The trading volume increased significantly, with an average daily transaction volume of 57.97 million tons, doubling from April [5] - The draft of the Ecological Environment Law, which includes provisions for establishing a carbon market trading system, is currently under review. This law aims to strengthen the control of greenhouse gas emissions and support the operation of carbon markets [6][7] Group 4: Global Carbon Market Trends - The global carbon market showed mixed trends in May, with varying transaction volumes across different markets. The EU carbon market saw a 24.11% decrease in average daily transaction volume, while the UK market increased by 5.03% [8] - Carbon prices in major global markets generally increased, with the EU market rising by 9.44%, the UK market by 14.43%, and the Korean market by 4.71% [8]