California carbon allowances trade at $14.60
California carbon allowances (CCAs) to be delivered in 2013 traded at $14.60 apiece over the week.
Prices for 2013 California carbon allowances have remained in the $14-15 range since February’s CCA auction.
That auction saw California carbon allowances clear at $13.62, nearly $3 above the floor price, based on increased participation from regulated companies in the state.
California carbon allowance prices were up from the previous week, after the California Air Resources Board (ARB) approved a link with Quebec’s carbon market.
The inclusion of the second most populous Canadian province will boost market size and improve liquidity.
With a target to reduce emissions to 20% below 1990 levels by 2020, Quebec is expected to be a net purchaser of California carbon allowances and carbon offset credits, further boosting demand for these compliance instruments.
Trading volumes remained healthy with over 600,000 CCAs exchanging hands over the week.
Over 11 million California carbon allowances have traded on the secondary market since January 1, when California businesses that release over 25,000 tonnes of carbon dioxide equivalent emissions must begin accounting buying CCAs and certified carbon offset credits to cover the associated emissions of their operations.
The next California carbon allowance auction is scheduled for May 16, when 14.5 million 2013 CCAs will be offered for sale.