Asia Pacific > Guangdong sets first 2015 auction floor price at 12.84 yuan

Guangdong sets first 2015 auction floor price at 12.84 yuan

Published 13:41 on September 10, 2015  /  Last updated at 13:41 on September 10, 2015  / Stian Reklev /  Asia Pacific, China

Guangdong will hold its first auction of 2015 CO2 allowances on Sep. 21, offering 300,000 allowances at a minimum price of 12.84 yuan ($2.01) each, the China Emissions Exchange in Guangzhou said Thursday.

Guangdong will hold its first auction of 2015 CO2 allowances on Sep. 21, offering 300,000 allowances at a minimum price of 12.84 yuan ($2.01) each, the China Emissions Exchange in Guangzhou said Thursday.

The market regulator plans to sell a total of 2 million allowances between now and next June, when the over 200 scheme participants must hand over permits to the government to cover their 2015 CO2 emissions.

Earlier this week, the exchange said the floor price mechanism has been reformed because of the low interest in the 2014 allowance auctions due to the minimum price being set far higher than secondary market prices.

For 2015, the floor price will be calculated ahead of each auction, and set at 80% of the three-month volume-weighted average price in the secondary market.

On Thursday, the Guangdong spot market closed at 16.93 yuan, with 10,160 allowances changing hands.

By Stian Reklev – stian@carbon-pulse.com

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