1.5 million California carbon allowances trade


California carbon allowances to be delivered in 2013 saw a busy week of trading as nearly 1.5 million CCAs exchanged hands.


Prices for 2013 California carbon allowances were in the $12 range, where they have hovered over the past few weeks.


Future California carbon allowances to be delivered in 2016 also traded.


Next month the state Air Resources Board will hold its fifth quarterly auction, where a total of over 26 millions 2013 and 2016 California carbon allowances will be sold.


To date, the ARB auctions have generated over $1 billion in revenue that will be used to offset any increases in electricity prices, fund other emission reduction projects in the state, and improve air quality.


Last week the first ARB carbon offset credits were traded in an over-the-counter exchange.


Businesses can purchase carbon offset credits instead of CCAs to account for up to 8% of their total emissions, creating a potential demand for over 200 million credits by 2020.


Only about 600,000 carbon credits have been issued so far, pointing toward a severe undersupply in the market.


Green Assets recently registered the Middleton Place Avoided Conversion Forestry project which will preserve over 3,700 acres of South Carolina forest.


The project will generate an initial 121,864 carbon credits which will be eligible for use in the California carbon market.


With carbon offset credits values in the $10 range, these first credits will provide a new revenue stream for the Middleton Place landowners, allowing them to pursue other conservation-based initiatives.