California carbon market worth $2.3 billion in 2013
Analysts at market firm Thomson Reuters expect the value of the California carbon market to rise to $2.3 billion this year.
The state’s Air Resources Board (ARB) will hold four California carbon allowance (CCA) auctions this year, where they will offer nearly 100 million carbon permits.
Large emitters in the state, such as power plants and fuel refineries, will be required to purchase these CCA, in addition to carbon offsets, to account for their annual emissions.
Last year the ARB held a single CCA auction in November that generated nearly $300 million in revenue that will be used to fund other emission reducing programs in the state
CCAs cleared at $10.09 at the November auction, but the floor price has been raised to $10.71 for 2013, and market analysts predict they will sell for even higher than that.
Trading volumes for vintage 2013 CCAs have skyrocketed since January, with over 3 million CCAs exchanging hands so far this year.
CCAs for delivery in 2013 have been trading in the $14-15 range for the past several weeks.
The California carbon market plans to link with Quebec later this year, which will further increase its market size.