Carbon emissions allowances closed at 28.22 yuan (about 4.29 U.S. dollars) per tonne Tuesday, up 0.46 percent from Monday, at the China Emissions Exchange (Guangzhou), the largest local carbon market in China.

A total of 486,954 tonnes of allowances were transacted Tuesday, with a turnover of 12.73 million 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 165.95 million tonnes of GDEA, with a total turnover of 3.39 billion yuan.