125,000 California carbon allowances trade
Fetching a price of $15.30 each, 125,000 California carbon allowances (CCAs) traded on the Intercontinental Exchange this past week.
The price remained steady following a public comment meeting where California Air Resources Board (ARB) officials met with representatives from electric utilities that will be regulated under the state’s carbon market beginning January 2013.
These electric providers attended to hear clarification regarding a number of issues including who will be responsible for meeting emission targets on imported electricity and how the ARB will address the concern of resource shuffling, which could be a source of market manipulation if out-of-state power utilities funnel all of their renewable energy to California to reduce their compliance obligations.
As the ARB’s carbon auction in November approaches, more and more businesses will begin engaging in the California carbon market to prepare for next year’s emission reduction targets.