Carbon emissions allowances closed at 37.66 yuan (5.25 U.S. dollars) per tonne on Wednesday, 0.97 percent down from Tuesday, at Guangzhou Emissions Exchange, the largest local carbon market in China.

A total of 806 tonnes of allowances were transacted on Wednesday with a turnover of 30,357.9 yuan.

The allowances, officially known as Guangdong Emissions Allowances (GDEA), are carbon dioxide emissions caps assigned to companies. Firms whose emissions surpass their share must buy extra quotas from authorities or purchase unused quotas on the market from those that cause less pollution.

Since its opening in December 2013, the market has traded 229.87 million tonnes of GDEA, with a total turnover of 6.67 billion yuan.