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Compliance results published in four Chinese pilot ETS

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June saw the end of the annual compliance cycle in most of the Chinese pilot emissions trading systems (ETS). Guangdong announced full compliance for its 186 regulated companies on 20 June (Chinese). Shanghai and Tianjin followed suit on 1 July, reporting 100% compliance for their 197 (Chinese) and 109 (Chinese) covered companies respectively. In Shenzhen, only one company out of the 636 regulated entities failed to comply (Chinese). The Development and Reform Commission in Beijing released a list of 85 non-compliant companies in mid-June (Chinese), but gave them extra time to make up the shortfall; no official information has been published since then. Hubei has postponed the compliance deadline to 25 July, while Chongqing has not yet released any information on compliance.

In the run-up to the compliance deadlines trading volumes increased significantly, which pushed prices up in most markets. At the end of June prices for allowances ranged from roughly CNY 7 in Tianjin to CNY 40 in Beijing (USD 1 to 6). In general allowances prices were lower than in 2015.