GUANGZHOU -- Carbon emissions allowances closed at 32.27 yuan (about $4.99) per tonne on Friday, 0.88 percent up from Thursday, at the China Emissions Exchange (Guangzhou), the largest local carbon market in China.

A total of 854 tonnes of allowances were transacted on Friday, with a turnover of 26,108 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 173.66 million tonnes of GDEA, with a total turnover of 3.6 billion yuan.