Carbon Exchange Market Slows Down due to Lack of Sellers
Organizations and individual investors are showing interest in buying carbon emission credits since the program was launched a month ago, but the lack of sellers of carbon credits is slowing down the market. No other deals except for the eight deals that were made during the opening day due to the weak supply of emission credits.
Shenzhen launched the first carbon trading market with rights to about 100 million tons of carbon emissions that was allocated for free to the 635 participating enterprises in the next three years which was based on previous emission and industrial added values. Companies that emits less than their allowance can trade the remainder in the market to create a cap and trade system. For this year alone more than 44 million tons of carbon emission is available.
Dozens of investors who wanted to buy carbon credits opened accounts at the emission exchange. Some investors put up prices at the exchange everyday and the daily demand is around 10,000 tons, but based on the reports by the exchange no carbon credits are available for purchase. Because of the weak supply prices for the exchange pushed up from 28 yuan per ton to 32 yuan per ton.
So far the National Development and Reform Commission has not approved any mission credits, so far the only products that are available for trading are the allowances given to Shenzhen enterprises