California carbon trading at $16.60

A healthy volume of 175,000 California carbon allowances (CCAs) traded over the Intercontinental Exchange during the course of the week.

Prices for CCAs to be delivered in 2013 closed at $16.60, up 30 cents from last week.

California Carbon offset (CCO) credits gained attention as a major emitter plans to purchase 100,000 CCOs generated from a forestry project in the near future.

Earlier this year other regulated entities in the state including Pacific Gas & Electric and the Sacramento Municipal Utilities Department issued Requests for Offers to buy several hundred thousand carbon offset credits.

The California Air Resources Board (ARB) will allow businesses to purchase CCOs to account for up to 8% of their compliance obligation, which could total up to 28 million carbon offsets during the first two years of the market.

Only four protocols have been approved for use in the California carbon market-Forestry, Urban Forestry, Agriculture Methane Capture, and the destruction of Ozone Depleting Substances.