California carbon allowances trade at $11.75

California carbon allowances for delivery in 2013 closed at $11.75 in a very busy week of trading.


Over 2.5 million 2013 California carbon allowance exchanged hands, the largest trading volume seen in several weeks.


The increased amount of activity is attributed to businesses acquiring CCAs before they become more expensive in 2014.


The auction floor price for California carbon allowances will increase from $10.71 to $11.34, in accordance with the Air Resources Board (ARB) Regulation which stipulates that the floor price will increase annually by 5% plus the rate of inflation..


At the most recent CCA auction, held in November, all 26 million of the offered allowances sold, generating $296 million in revenue that the state will use to fund other emissions reduction programs, improve air quality, and offset any increases in electric prices.


The ARB has held five auctions dating back to 2012 that have combined to sell 117 million California carbon allowances, creating over $1.3 billion in revenue.


The next auction is scheduled for Feb. 19, 2007 when 28.7 million CCAs will be offered