The Shanghai Environment & Energy Exchange (SEEE) released its guidelines for the trading of carbon emissions on June 22, signaling that China is taking a step towards a national scheme for the trading of carbon emission permits.
Ahead of a national trading system being set up, the SEEE, China’s first trading platform for the environmental and energy sectors, will be the sole marketplace for the trading of carbon emission allowances (CEAs) nationwide. China has implemented decade-long pilot projects in several provinces and cities including Shanghai.
The trading period will be from 9:30-11:30 in the morning and 13:00-15:00 in the afternoon from Monday to Friday, while large deals will be transacted during the afternoon period.
The first deal price on any day will be the opening price, while if there is no deal on the given day, the closing price on the previous trading day will be the opening price. At the same time, the closing price will be the weighted-average price of all deals on that day, while the closing price on the previous trading day will be the next day’s closing price if there is no trading on the next day.
The deal price of a listed agreement transaction will be determined within ±10 percent of the closing price on the previous trading day.