To systematically summarize the experience of the first compliance cycle and to promote a better understanding of the national carbon market, the Ministry of Ecology and Environment recently released the Report on the First Compliance Cycle of the National Carbon Emissions Trading Market.
Ended on 31 December 2021, the first compliance cycle of China’s national carbon emission trading market included 2,162 main emission units in the power generation sector, covering an annual greenhouse gas emission of approximately 4.5 billion tones of carbon dioxide.
Since its official launch of online trading on July 16, 2021, the national carbon market operated for 114 trading days, with a cumulative turnover of 179 million tones of carbon emission allowances worth 7.7 billion yuan ($ 1.1 billion).
The market closed at 54.22 yuan per ton of carbon dioxide on 31 December 2021, up 13 percent from the opening price.
The overall compliance rate of the carbon market was 99.5 percent, with a total of 1,833 key emitters completing their allowance payments fully and on time, and 178 key emitters partially completing their allowance payments.
In terms of compliance by region, five provinces and cities — namely Hainan, Guangdong, Shanghai, Hubei and Gansu — have completed their quota on time.