California carbon allowances trade at $14.50


California carbon allowances (CCAs) prices remained high, rising from last week to close at $14.50.


The market continued to see high volumes of California carbon allowances to be delivered in 2013 as over 800,000 CCAs exchanged hands over the week.


Over 8 million California carbon allowances have traded since January 1 with prices hovering in the $14-$15 range as more and more entities participate in the market.


In last February’s auction, California carbon allowances reached a settlement price of $13.62.


California businesses that must account for their emissions are anxiously awaiting news on carbon offset projects transferring for use in the mandatory compliance market.


There has been a flurry of activity regarding carbon offsets during the week.


Shell Energy announced they are purchasing 500,000 forestry offsets expected to transfer for use in the California carbon market.


Another regulated utility, Pacific Gas & Electric, is also expected to release a Request for Offers for compliance-grade carbon offsets later this month.


Last year the Sacramento Municipal Utilities Department issued a Request for Offers for 200,000 carbon offset credits.


With only four project protocols approved to supply California carbon offsets, the American Carbon Registry predicts a significant shortfall of available credits.