EU carbon price hit a new high, the annual average price of 53.65 euros/ton, the highest level since the launch of the European carbon market

In 2021, countries around the world are actively promoting carbon neutrality action, the carbon market has entered a period of vigorous development.

Europe increased the emission reduction target, superimposed the soaring price of natural gas, coal power generation increased significantly, the European carbon price all the way up, the whole year showed a unilateral rising trend, from 33 euros/ton at the beginning of 2021, rose to 88 euros/ton on December 8, 2021, the highest level in history, an increase of up to 167%. The average price of carbon allowances throughout the year was 53.65 euros/ton, which was also the highest level since the launch of the European carbon market.

Since the winter of 2021, in the case of insufficient renewable energy power generation, the European natural gas price has reached a new high, and the increase of fossil energy power generation has led to the increase of carbon quota demand. Combined with the relative maturity of financial derivatives in the European carbon market and the delay of carbon quota allocation in 2021, the European energy price has started a new round of rise. Electricity prices, natural gas prices and carbon prices rose in tandem.

On July 16, 2021, China's carbon market went online, and a total of more than 2,000 enterprises in the power industry were included in the national carbon market as the first batch of emission control enterprises. By December 31, 2021, the national carbon market has completed its first compliance cycle, with a cumulative turnover of nearly 180 million tons and a turnover of more than 7.6 billion yuan, with an average listed transaction price of 46.61 yuan/ton.

After the launch of the national carbon market, the closing price of carbon allowances on the first day was 51.23 yuan/ton. Since then, it has risen to 58.70 yuan/ton, the highest level since listing. Then, the price of carbon allowances gradually fell to 41.84 yuan per ton at one point. As the compliance period approached, the price of carbon allowances returned to near 50 yuan.

The overall trend of the national carbon quota price is ""high at two ends and low in the middle"". From the first day of trading to the middle of August 2021, the trading of the national carbon market is mainly dominated by ten large energy groups, including the five central enterprise power groups, Sinopec, petrochina, China Resources Power, Shenneng and Zheneng Group. The closing price of the national carbon market fluctuates at about 50 yuan/ton.

From mid-August to mid-December 2021, due to the large surplus of quotas in the national carbon market and the strong willingness of power generation enterprises to sell, the national carbon market has been in the buyer's market market of oversupply during this period, and has always maintained a slight fluctuation within the range of 41 to 43 yuan/ton. From December 15, 2021 to the end of the year, because 95% of the key emission units completed the implementation of the contract, the national carbon market turnover began to gradually shrink, but there are still some enterprises have not completed the implementation of the contract, eager to purchase carbon quotas on the plate, at the same time, the seller of enterprises appear reluctant to sell, the price of carbon quotas rose sharply, December 30, 2021, The listed closing price was 57.06 yuan/ton, the second highest since the listing.