430,000 carbon allowances trade in California
In its busiest week in months, the California carbon market saw 430,000 carbon allowances trade over the Intercontiental Exchange.
Carbon prices continued to climb closing at $20 per allowance.
The increase in trading volume is attributed to the increased participation of electricity traders.
Confidence that the California carbon market will launch on schedule has led to higher levels of activity as well.
In addition, the closure of a nuclear power plant operated by Southern California Edison will make it more difficult to remain under the approved carbon cap, since fossil fuel power plants emit far more carbon.
Carbon offsets will offer an additional form of market instrument to meet compliance.
The Sacramento Municipal Utilities Department released a Request for Offers to acquire 200,000 carbon offsets generated from the four project protocols approved by the California Air Resources Board.
50,000 offsets generated from a project that destroyed Ozone Depleting Substances also traded over the course of the week.