215,000 carbon allowances trade in California

In its busiest week since May, the California carbon market saw 215,000 California carbon allowances (CCAs) trade over the Intercontinental Exchange.

The price per CCA rose slightly from the previous week as well closing at $15.65.

Prices have hovered in the $15-$16 range for the past several weeks, evidence analysts take to mean that the market is developing soundly.

The rise in trading volume may also be attributed to signs that California will link its market with Quebec as part of the Western Climate Initiative.

The California Air Resources Board (ARB), the group responsible for designing and implementing the state’s carbon market, will hold a vote on linkage with the Canadian province at its board meeting at the end of the month.

Businesses that will have their emissions regulated under the new system are beginning to venture into the market now that there is more confidence that the carbon market will launch as planned on January 1, 2013.

These compliance entities will be able to buy ARB certified carbon offsets to meet up to 8% of their required reductions which totals over 10 million carbon offset credits annually according to a Barclays Capital report.