Most Chinese pilot carbon market saw low trading activity as compliance deadlines have passed in some markets.
Transaction prices in most China carbon markets crashed despite last-minute buying from covered entities to meet compliance deadlines
Despite a jump in traded volume before compliance deadlines across various markets, carbon prices failed to rally due availability of cheaper CCERs.
Shenzhen Emission Allowances 2015 vintage (SZA2015) have been allocated to the covered entities; trading will start from 1 July 2015.
Carbon prices across Chinese markets fell by as much as 42% as several covered entities seem to have purchased the required compliance instruments.
Only 10.5% of the allowances offered by the Guangdong Provincial Development & Reform Commission were cleared in the final auction of compliance year 2014.
Guangdong Carbon Emissions Exchange will waive off transaction and annual membership fees for traders and institutional investors.
Of the 190-odd entities covered under the Shanghai carbon market, 37 entities surrendered emission allowances on 1 June.
Shenzhen emission allowances rallied as covered entities continued to acquire allowances to meet compliance obligation.
Guangdong will offer 3 million allowances in the last auction of the compliance year on 10 June 2015.