400,000 carbon allowances trade in California

400,000 California carbon allowances (CCAs) for delivery in 2013 traded over the week, in advance of the state’s inaugural auction next Wednesday.

With only a few days until the California carbon market launches, trader seized up large amounts of CCAs that closed the week at $12.40 apiece.

Over 23 million CCAs will be auctioned next week.

Despite having a $10 floor price, market analysts predict that CCAs will go for around $13 at auction.

Over 350 heavy emitting businesses in the state will begin having their emissions regulated beginning in January and will have to retire their first round of compliance instruments in late 2014.