GUANGZHOU—Carbon emissions allowances saw a notable increase in price at the Guangzhou Emissions Exchange on Friday.

According to Namibia Press Agency, the carbon emissions allowances, known as Guangdong Emissions Allowances (GDEA), closed at 48.93 yuan (about 6.89 U.S. dollars) per tonne, marking a 6.44 percent rise from Thursday’s close. The trading session ended with 101 tonnes of allowances changing hands, generating a turnover of 4,942 yuan.

The GDEA system sets caps on carbon dioxide emissions for companies within the region. Businesses that emit more than their allocated share are required to buy additional quotas either from the government or from other companies that have not used up their quotas, providing a financial incentive to reduce emissions.

Since the inception of the Guangzhou Emissions Exchange in December 2013, the market has handled transactions involving over 228.58 million tonnes of GDEA, resulting in a cumulative turnover of approximately 6.61 billion yuan.