Carbon allowance floor rises to $10.70 for next auction

According to the California carbon allowance (CCA) auction design, the floor price for CCAs will increase by 5%, plus the rate of inflation every year.

In the inaugural auction held last November, the floor price was set at $10.

For the four auctions scheduled to be held next year, the floor price will rise to $10.70.

Nearly $300 million in revenue was generated from last November’s auction. The California Air Resources Board and the state’s Department of Finance will work together to develop an investment plan to fund other clean energy initiatives, including projects that improve air quality in disadvantaged communities.

Future carbon allowance auctions will be held quarterly in February, May, August, and November.