204,000 carbon allowances trade in California

204, 000 California carbon allowances (CCAs) traded in a busy week for the state’s carbon market.

Prices for the CCAs to be delivered in 2013 closed at $15.20.

The California Air Resources Board has confirmed that it is on schedule to hold its first carbon allowance auction on November 14.

Although the auction will have a CCA floor price of $10 each, market participants expect the allowances to go for around $15 apiece.

Regulated businesses will likely look to purchase carbon offset credits, in addition to CCAs, which they can purchase to meet up to 8% of their compliance obligation.

Carbon offset credits offer a savings since they will sell at a discount from allowances, however a recent report from the American Carbon Registry stated that supply may fall 29% short of demand.