Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China CO2 Price May Not Reflect Demand, New Energy Says

Sept. 18 (Bloomberg) -- The first carbon-dioxide price reported in China’s Guangdong province at 60 yuan ($9.50) a metric ton is probably coordinated by government and may not reflect demand and supply, said Bloomberg New Energy Finance.

Four Chinese cement makers bought 1.3 million tons of emission permits for the new carbon market at the price, the 21st Century Business Herald reported today. European Union carbon was today at 7.51 euros ($9.81) a ton on the ICE Futures Europe exchange in London as of 3:04 p.m.

“The price of 60 yuan a ton is negotiated between local government and the buyers, and does not reflect any supply and demand fundamentals,” Charlie Cao, an analyst at Bloomberg New Energy Finance in Beijing, said today.

“The emitters with potential capacity expansion plans need to purchase carbon credits to obtain project approval,” he said in an e-mailed note.

The cement companies plan to add about 25 million tons of annual production capacity, which will emit 13 million tons of carbon, the newspaper said in a report on its website. About 90 percent of the carbon-dioxide emissions will be covered by free quotas handed out by the government, with the companies needing to pay for the remaining 10 percent, it said.

To contact the reporters on this story: Mathew Carr in London at m.carr@bloomberg.net; Jing Yang in Shanghai at jyang251@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.