New buyers push California carbon to $15.50

The California carbon market saw a rush of activity this week with 245,000 carbon allowances trading on the Intercontinental Exchange (ICE).

Prices for California carbon allowances (CCAs) also jumped to $15.50 a piece in what turned into the busiest week of trading since last year.

The spur in activity can be attributed to the increased participation of state utilities following their recent approval of market regulations for how they can engage in carbon trading. California’s three largest electricity providers now have the ‘green light’ to begin buying and selling allowances and offsets.

Last week’s successful Navigating the American Carbon World conference provided further confidence that the California carbon market is on schedule to launch in 2013 with its first auction this November.