Trading on China's carbon market expands after the Ministry of Ecology and Environment has ordered all provinces and cities ensure that all the key facilities finalize emission allowances before December 31.
In July, China launched the world's largest carbon market to harnesses market forces to achieve a significant reduction in CO2 emissions.
At the closure on Friday the total turnover of carbon emission quota hit 7.52 million tons, with a total value of 308.6 million yuan ($48.51 million), both reaching a new high since the opening of the trading on July 16, according to the Shanghai Environment and Energy Exchange (SEEE).
To date, among the five power generation groups, China Datang Corporation and China Huadian Corporation have completed their trading allowance for all key emission facilities, with the average transaction prices standing at 42.14 yuan and 43.21 yuan per ton respectively.
The largest carbon capture project in China is set to commence construction in East China's Jiangsu Province.
The project operated by Taizhou Power Plant of the Jiangsu branch of China Energy, designed to capture 500,000 of carbon will be completed and put into operation 2023, according to the plant.
The captured carbon dioxide will be widely used in oil field displacement and chemical industry in Jiangsu.
"Our production cost is 250 yuan per ton while the price of carbon dioxide in surrounding areas can reach about 300 yuan per ton. The profitability of the whole project is strong," said an official representing the project.
As a key emitter of carbon dioxide, China Petrochemical Corporation (Sinopec Group) will build carbon capture, utilization and storage projects in Jiangsu Oilfield in Yangzhou in Jiangsu to inject the captured carbon dioxide to extract more oil.
There are about 10 billion tons of petroleum geological reserves in China suitable for carbon dioxide (CO2) fluid extraction technology. It is expected that the environmentally friendly and highly efficient extraction technology will increase the oil production by 1.4 billion tons nationwide, said a spokesperson with Sinopec.
