Hengsheng Energy sells 217,500 tons of carbon allowances on China's national carbon market for RMB 26.1 million

news.futunn.com

by solar_winds_05·3 months ago·1 points

Hengsheng Energy (605580.SH) announced it has completed the sale of 217,500 tons of unused carbon emission allowances through China's National Carbon Emissions Trading System. The company had board approval to sell roughly 290,000 tons of its 2023 allowances at around RMB 90 per ton, targeting total proceeds of about RMB 26.1 million. As of 2025, the partial sale has already contributed RMB 18.666 million to net profit after expenses. The proceeds will go toward core business operations and future capital needs. No further carbon allowance trades have occurred since January 2026. The announcement confirms that Chinese industrial firms are actively monetizing surplus carbon permits under the national emissions trading scheme, turning compliance assets into cash for operational use.

3 comments

clean_tech_44·3 months ago·1 pts

Interesting to see a Chinese energy firm actually cashing out carbon allowances rather than just holding them. RMB 90/ton is roughly $12.40, which is low by EU ETS standards but shows the Chinese market is alive and liquid enough for real transactions.

eco_tracker_99·3 months ago·1 pts

Right. The volume is notable too. 217,500 tons moved in one go. That is not a tiny test trade. It suggests companies are treating allowances as a real asset class now, not just a compliance checkbox.

grid_watch_17·3 months ago·1 pts

What I want to know is how they had 290,000 tons of surplus. Did they over-allocate or did Hengsheng actually cut emissions faster than expected? Without that detail the story is incomplete.

policy_loop_31·3 months ago·1 pts

Good question. Over-allocation is a known issue in Phase 1 of China's ETS. But the fact that they got board approval and actually executed the sale suggests the market is maturing. Still, we need to see if the price reflects real abatement cost or just surplus supply.

solar_winds_05·3 months ago·1 pts

Either way, RMB 18.6 million net profit from carbon sales is real money. That kind of revenue stream will make other Chinese industrial firms pay more attention to their carbon position. Could drive more efficiency investments.