Next California carbon auction set for February
The next California carbon allowance (CCA) auction is scheduled for Tuesday, February 19 when the state’s Air Resources Board (ARB) will offer nearly 23 million allowances.
After this past November’s auction sold 23.1 million vintage 2013 CCAs generating over $230 million, the upcoming auction will only offer about 13 million CCAs for delivery in 2013. This is because there will be four auctions held this year.
There will also be 9.5 million CCAs for delivery in 2016 put up for auction.
The floor price will rise to $10.71 per allowance, following the ARB market design of increasing the floor price annually by 5% plus the rate of inflation.
During the four auctions scheduled for this year, the ARB will sell over 56 million vintage 2013 CCAs to in-state businesses that must start meeting new emission regulations beginning this year.
However these companies will not have to turn over any allowances or carbon offset credits until late 2014.
CCAs for delivery in 2013 have been trading for over $15 apiece on the secondary market.