Report Summary 1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints The report tracks important dynamics in the domestic and international "dual carbon" fields from July 14 to July 18, 2025, mainly focusing on the carbon quota trading sector. It shows that carbon quota prices and trading volumes in different markets have different trends, and there are also significant events in the green development field [2][5]. 3. Summary by Relevant Catalogs International Carbon Trading Market Tracking - **European Carbon Quota Price and Volume**: EUA spot price dropped from 69.68 EUR/ton on July 14 to 69.18 EUR/ton on July 18, a weekly decline of 0.72%. The EUA spot trading volume last week was 250,000 tons, a 21.95% increase from the previous week. EUA futures price decreased from 70.43 EUR/ton on July 14 to 69.89 EUR/ton on July 18, a weekly decline of 0.77%. The EUA futures trading volume last week was 3.331 million tons, a 3.25% decrease from the previous week [6]. - **US Carbon Quota Price and Volume**: EUA futures price fell from 70.42 EUR/ton on July 14 to 69.89 EUR/ton on July 18, a weekly decline of 0.75%. The total EUA futures trading volume last week was 11.946 billion tons, a 0.99% decrease from the previous week. UKA futures price rose from 48.15 GBP/ton on July 14 to 49.21 GBP/ton on July 18, a weekly increase of 2.20% [9]. - **South Korean Carbon Quota Price and Volume**: KAU24 spot price increased from 8,600 KRW/ton on July 14 to 8,660 KRW/ton on July 18, a weekly increase of 0.70%. The trading volume of KAU24 spot in the South Korean market last week was 1.1412 million tons, a 2.82% decrease from the previous week [15]. Domestic Carbon Market Tracking - **National Carbon Market Carbon Quota Volume and Average Transaction Price**: The cumulative trading volume of carbon quotas (CEA) in the national carbon market last week was 155,700 tons, and the cumulative transaction amount was 114.0725 million yuan. Both the cumulative trading volume and transaction amount decreased compared to the previous week, with declines of 20.88% and 22.74% respectively. As of July 18, the average daily transaction price of CEA last week was 73.94 yuan/ton, a 1.67% decrease from the previous week [19]. - **Weekly Average Transaction Price of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: Except for HBEA in Hubei Province and GDEA in Guangdong Province, the weekly average transaction prices of carbon quotas in domestic pilot carbon markets showed an upward trend, with the largest increase of 2.75% in SHEA in Shanghai. Compared with the same period last month (from June 16 to June 20, 2025), the weekly average transaction prices of carbon quotas in each pilot carbon market showed a downward trend except for SZA in Shenzhen, with the largest decline of 8.80% in SHEA in Shanghai [23]. - **Trading Volume and Transaction Amount of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: The carbon quota trading in domestic pilot carbon markets last week was mainly concentrated in the carbon markets of Guangdong, Shenzhen, and Hubei provinces. Their weekly trading volumes accounted for 99.21% of the total weekly trading volume of all pilot carbon markets. The transaction amounts of the carbon markets in Guangdong, Shenzhen, and Hubei provinces accounted for a relatively high proportion, accounting for 98.65% of the total weekly transaction amount of all pilot carbon markets. The total weekly trading volume of domestic pilot carbon markets last week was 52,990 tons, a significant increase of 290.82% from the previous week [25]. Dual Carbon Frontier Technology Tracking - **Three Departments Issue Green Finance Support Project Catalog**: The People's Bank of China, the Financial Regulatory Administration, and the China Securities Regulatory Commission jointly issued the "Catalogue of Projects Supported by Green Finance (2025 Edition)", which will come into effect on October 1, 2025. The catalogue integrates existing standards, delineates eight categories of supported projects such as energy conservation and carbon reduction, and environmental protection, providing a unified basis for various green financial products [2][27]. - **New Records Set for New Energy Power and Electricity in Ningxia**: On July 11, the maximum output of new energy in Ningxia reached 28.41 million kilowatts, and the daily maximum power generation reached 382 million kilowatt-hours, both setting new historical records. In the first half of 2025, the proportion of new energy power generation in Ningxia increased to 34.66%. With over 8 million kilowatts of new energy connected to the grid in the first half of the year and an expected increase of over 17 million kilowatts in the second half of the year, Ningxia will provide strong practical support and technical demonstrations for China's construction of a new power system dominated by new energy [29].

Core Insights - The national carbon market in China is celebrating its fourth anniversary, marking significant progress in its development and public engagement efforts [1][2][3] Group 1: Market Development - As of July 15, 2025, the national carbon market has achieved a cumulative trading volume of 673 million tons and a total transaction value of 46.246 billion yuan [1] - The market has successfully included high-energy-consuming industries such as steel, cement, and aluminum smelting, covering an additional 3 billion tons of CO2 emissions, alongside the previously covered 5 billion tons from the power sector, totaling over 8 billion tons, which represents more than 60% of the national CO2 emissions [5] - The Hubei carbon market is recognized as the most active in the country, accounting for a significant portion of the total trading volume and daily transaction value [5] Group 2: Public Engagement and Education - The "Carbon Asset Brain" building in Wuhan serves as a hub for carbon market activities and public education, hosting events to raise awareness and encourage participation in carbon trading [2][3] - The open day event featured interactive experiences, allowing citizens to engage with the carbon market through simulated trading, enhancing their understanding of market mechanisms [3] - Hubei's innovative carbon-inclusive mechanisms allow citizens to convert low-carbon behaviors into carbon credits, promoting daily participation in carbon reduction efforts [2][3] Group 3: Future Outlook - The national carbon market aims to continue its development towards a more mature and regulated system with enhanced price discovery and financial attributes [5] - Future expansions will include additional key emission enterprises, further integrating regional data with national carbon management [6]

Group 1 - The national carbon emission trading market has been operational for four years, with a total trading volume of 673 million tons and a trading value of 46.249 billion yuan as of July 15 [1][4] - The carbon market has included approximately 3,700 key emission units across four major industries: power generation, steel, cement, and aluminum smelting, covering an annual greenhouse gas emission volume of about 8 billion tons [4] - The establishment of the carbon registration and settlement institution, known as "Zhongtan Dengdeng," in Wuchang District has positioned it as the "carbon asset brain" and "carbon trading hub" for the national carbon market [4] Group 2 - The open day event attracted representatives from communities, schools, environmental organizations, and enterprises, showcasing the achievements of the carbon market and allowing participants to engage in simulated carbon trading [2][3] - Wuchang District is actively developing a dual-carbon economic belt centered around the Zhongtan Dengdeng building, attracting over 90 companies and research institutions in carbon trading, management, finance, and technology [4]

Core Viewpoint - China Carbon Neutral (01372) has successfully completed the technical testing of its Carbon Coin, which is pegged to 1 kilogram of carbon credit, utilizing blockchain and smart contract technology to enhance the efficiency, transparency, and automation of carbon credit trading [1][2] Group 1: Carbon Coin and Technology - Carbon Coin is a carbon credit-backed stablecoin that aims to create a unified tokenized carbon ecosystem, facilitating the seamless transfer of carbon credits between buyers and sellers [1] - The application system includes carbon accounts, carbon reduction projects, and lifecycle management systems for carbon credits, enhancing the compatibility and functionality of carbon asset trading [1] - The technology is expected to improve information and price transparency, ultimately increasing market liquidity [1] Group 2: Global Carbon Market Challenges - The global carbon market faces challenges such as reduced efficiency, lack of standardization, insufficient transparency, and market fragmentation [1] - A tokenized carbon ecosystem can address these issues, supporting the development of global carbon trading [1] Group 3: Stablecoin Impact on Cross-Border Payments - Stablecoins can significantly enhance cross-border payment efficiency, reducing costs to one-tenth of traditional systems and achieving transaction speeds in seconds [2] - It is projected that by 2024, 10% of global cross-border payments will be completed using stablecoins [2] Group 4: Strategic Implications for the Company - The successful testing of Carbon Coin and the carbon credit anchoring protocol is expected to improve the quality tracking and transparency of carbon reduction projects, benefiting carbon market service providers [2] - The company believes that participation in digital technology will lead to sustainable business growth and financial returns, laying a solid foundation for further business expansion and enhancing overall shareholder interests [2]

Core Insights - The national carbon emissions trading market in China is set to expand its coverage to include the steel, cement, and aluminum smelting industries, which are significant carbon emitters, with an estimated total emissions coverage of approximately 80 billion tons [1][3][4] - The market has seen a cumulative trading volume of about 673 million tons and a total transaction value exceeding 46.2 billion yuan as of July 15, 2025, indicating a growing trading scale and stable price trends [1][6][12] - The introduction of the voluntary carbon emissions reduction trading market (CCER) has begun, with the first certified voluntary reduction units officially issued, further enhancing market activity [1][12] Market Expansion - The national carbon market is recognized as a major institutional arrangement to address climate change and promote green low-carbon transformation in the economy [2][4] - The expansion plan was outlined in the government work report for 2025, emphasizing the need to broaden the industry coverage of the carbon emissions trading market [2][4] - The newly included industries are expected to add around 1,500 key emission units, increasing the total to approximately 3,700 units, which will cover over 60% of the national carbon emissions [3][4] Trading Mechanism and Performance - The carbon trading system has adopted a single-sided bidding method to enhance trading efficiency [3] - The carbon price has fluctuated within a reasonable range, with the market price recently stabilizing between 70-80 yuan per ton after reaching a peak of over 105 yuan per ton in November 2024 [7][9] - The completion rate for the 2023 carbon quota was approximately 99.98%, indicating a strong compliance culture among key emission units [6][11] CCER Market Development - The CCER market has seen a cumulative trading volume of about 237,800 tons and a total transaction value of 200 million yuan as of July 15, 2025, reflecting its growing importance [13][12] - Various stakeholders, including national and local key emission units, project developers, and financial institutions, are participating in the CCER market, which is expected to further stimulate market activity [13][14] - The CCER price has remained higher than the carbon emissions allowance (CEA) price, indicating strong market demand and the potential for future price adjustments as supply increases [10][14]

Report's Investment Rating - No information provided Core Viewpoints - The report suggests that enterprises with a quota gap should make phased low - cost purchases before the end of August. The depletion of the mandatory circulation quota may support the carbon price reversal. With less than half of the 2025 mandatory circulation quota released, it's expected to be exhausted by mid - October. Anticipatory trading may lead to a carbon price reversal in Q3. Before August, the carbon price may fluctuate due to slow quota release and low trading willingness. From September, the price may rise as compliance pressure mounts, but price volatility may intensify in the second half of the year [4] Summary by Related Catalogs Market Quotes - CEA: The main targets showed mixed trends and were generally weak. The listed volume was 3.1 thousand tons, and the bulk volume was 0.0 thousand tons. The closing prices of CEA19 - 20, CEA21, CEA22, CEA23, and CEA24 were 71.34 yuan/ton, 71.00 yuan/ton, 74.50 yuan/ton, 74.11 yuan/ton, and 74.50 yuan/ton respectively, with the CEA23's price dropping by 0.86% and CEA24 rising by 0.04%. The total trading volume of CEA23 was 2.11 thousand tons, and that of CEA24 was 1.00 thousand tons [3][6] - CCER: The listed agreement trading volume was 0.15 thousand tons, the average trading price was 83.05 yuan/ton (down 0.51%), the trading amount was 124,700 yuan, and the cumulative trading volume was 237,660 tons [3][8]

Core Insights - The national carbon market in China is approaching its fourth anniversary, with significant progress in emissions reduction and market stability, achieving a cumulative transaction value exceeding 46.2 billion RMB and an average price of over 74 RMB per ton [1] - The market is evolving towards maturity, with ongoing improvements in regulatory frameworks and mechanisms to facilitate carbon pricing and trading [1][2] Market Expansion - The national carbon market has completed three compliance cycles and is expanding to include steel, cement, and electrolytic aluminum industries, which are significant contributors to emissions [2] - This expansion is designed to be gradual, allowing new sectors to adapt to the rules and enhance their participation in carbon trading [2] Financial Mechanisms - Carbon markets offer unique advantages over traditional financing methods, such as shorter financing cycles and better mobilization of private capital, particularly beneficial for developing countries [3] - The development of carbon financial products, including futures and derivatives, is expected to enhance market liquidity, risk management, and pricing mechanisms [6][7] Data Utilization - There is a need for improved carbon accounting and disclosure mechanisms, as many companies lack robust carbon data, which is crucial for financial institutions [4] - Financial institutions are increasingly engaging in carbon accounting and climate risk stress testing, with 535 institutions conducting carbon accounting and 134 performing climate risk assessments in 2022 [4] Regulatory Developments - The People's Bank of China is revising guidelines for environmental information disclosure to encourage innovation in sustainable reporting among financial institutions [5] - The introduction of sustainable development reporting guidelines by major exchanges aims to enhance the quality of corporate sustainability disclosures [5] Future Directions - Experts emphasize the importance of developing a diverse range of carbon financial products to support small and medium enterprises in their carbon reduction efforts [7] - Initiatives like carbon accounts and rating systems are being piloted to link corporate emissions reductions with financing costs, fostering a sustainable reduction mechanism [7]

Group 1 - The national carbon emissions trading market achieved a transaction volume of 189 million tons and a transaction value of 18.114 billion yuan in 2024, marking a new high since its launch in 2021 [2] - Shanghai Environment and Energy Exchange plays a significant role in guiding enterprises to reduce emissions and promote the development of green low-carbon industries [2][3] - The green low-carbon industry in Hongkou District has formed a scale exceeding 100 billion yuan, with a growth rate of over 20% expected in 2024 [4] Group 2 - The carbon trading mechanism effectively promotes energy conservation and emission reduction among enterprises, enhancing their market competitiveness and optimizing the business environment [3] - The new power system construction aims to support the dual carbon policy, with a focus on high reliability in urban core areas [4] - EY has integrated green low-carbon concepts into its five major business sectors, providing professional support for enterprises in the green low-carbon field [4] Group 3 - Nuclear energy is expected to play an increasingly important role in achieving dual carbon goals, with significant potential for development in energy structure and healthcare sectors [5] - Companies are actively supporting the construction of carbon business systems to promote the development of green low-carbon services [5]

Group 1 - The core viewpoint of the news is the introduction of the "Beijing Carbon Inclusive Management Measures (Trial)" aimed at promoting public participation in green and low-carbon actions to help the capital achieve its carbon peak and carbon neutrality goals, effective from September 1, 2025 [1][4] - Beijing has the highest participation in carbon inclusive activities in the country, with 5.6 million participants [1][2] - The "Low Carbon Travel" carbon inclusive project has achieved a cumulative carbon reduction of over 400,000 tons since its inception in 2020 [2] Group 2 - The management measures will further promote the carbon inclusive mechanism from pilot exploration to standardized and in-depth development, providing institutional support for low-carbon governance [4] - The management measures include six chapters and 35 articles, covering aspects such as carbon inclusive methodology management, project management, and emission reduction management [4] - The measures encourage various social welfare organizations, financial institutions, and large enterprises to support carbon inclusive actions, signaling that low-carbon behaviors have value [5]

Core Points - The Shanghai Carbon Benefit platform officially launched on June 25, 2025, allowing citizens to convert carbon reduction from daily green behaviors into digital currency and various rewards [1][14][16] - The platform has gained popularity, with 130,000 users participating in the initial experience phase, demonstrating the public's engagement with low-carbon actions [16][18] - The carbon reduction mechanism aims to make carbon reduction actions visible, measurable, and rewarding, fostering a culture of low-carbon living among citizens [18][23] Group 1: Carbon Benefit Mechanism - The core of the carbon benefit mechanism is to enable various societal entities to see, quantify, and receive rewards for their carbon reduction efforts, thus motivating low-carbon lifestyles [18][19] - The platform integrates multiple daily life scenarios for carbon reduction, including public transport, shared bicycles, and electric vehicles, allowing users to accumulate carbon credits [24][37] - Each gram of carbon reduction corresponds to one carbon credit, which can be exchanged for rewards, enhancing the perceived value of low-carbon actions [16][27] Group 2: Platform Features and Structure - The Shanghai Carbon Benefit system is designed with a focus on individual carbon accounts, supported by a top-down approach that encourages government leadership, public participation, and market operations [23][24] - The platform has established a comprehensive and user-friendly carbon benefit system, addressing challenges such as data silos and limited reward options [19][25] - The carbon credit marketplace allows users to exchange their accumulated credits for a variety of rewards, thus linking individual actions to broader carbon market transactions [26][30] Group 3: Regulatory and Technical Framework - The Shanghai government has implemented a series of regulations and guidelines to ensure the effective operation of the carbon benefit system, including the establishment of legal attributes for carbon credits [32][33] - A standardized methodology for calculating carbon reduction has been developed, ensuring the credibility of carbon credits and facilitating their integration into the carbon market [33][34] - Blockchain technology is utilized to secure data and manage identities, enhancing the reliability and transparency of the carbon benefit platform [35]