California carbon allowances trading at $13.80

California carbon allowances trading at $13.80

California carbon allowances for delivery in 2013 closed the week at $13.80 apiece.

Businesses that must being accounting for their annual emissions beginning this year are currently examining the impact of changes to the governing regulation developed by the California Air Resources Board (ARB).

Earlier this month the ARB announced the potential changes which could include allocating additional California carbon allowances to natural gas suppliers and fuel refineries to allow them time to adjust to the new compliance costs.

The ARB will vote on whether to approve the amendments at their board meeting on October 24.

One broker expressed his opinion that these changes should not have too large of an impact on the price of California carbon allowances.

At the past ARB auction, CCAs reached a record high settlement price of $14 each.

The next auction is scheduled for August 16, when over 23 millions California carbon allowances will be put up for sale.

(7/26/13)