California carbon trading at $15.40

California carbon trading at $15.40

California carbon allowances (CCAs) that will be used in the state’s carbon market closed at $15.40 at the end of the week, up $0.10 from the previous week.

Over 65,000 CCAs traded on the Intercontinental Exchange (ICE).

For the past several weeks the carbon price has remained at $15-$16, leading market players to gauge this as an accurate price range for the short term. Prices are expected to remain in this domain until the California Air Resources Board (ARB) announces how many allowances will be given to regulated utilities in late June.

Other significant milestones will occur later this year. The California Air Resources Board (ARB) will hold a simulated allowance auction this August ahead of the actual auction in November.

As summer progresses, more and more state emitters are expected to begin engaging in the market to position themselves for regulatory compliance.