1 million California carbon allowances trade
Nearly 1 million California carbon allowances for delivery in 2014 exchanged hands in a busy week of trading.
The market continues to see prices for vintage 2014 California carbon allowances remain above the $12 threshold, closing at $12.05 on Friday.
Regulated businesses in California have shown increasing interest in carbon offset credits since the cost of California carbon allowances has risen.
Carbon credits represent emissions reductions that are produced through one of the California Air Resources Board’s (ARB) approved project protocols which include Forestry, Agricultural Methane Capture, and the destruction of Ozone Depleting Substances.
Each credit equals one metric tonne of carbon dioxide equivalent.
Forestry projects reward landowners for conserving their trees and the carbon stored within them. Properties generate revenue from the sale of carbon credits, instead of harvesting trees to create traditional products like lumber and pulpwood.
Companies in California can purchase carbon credits to account for up to 8% of their annual emissions. Despite the demand for up to 26 million carbon credits by the end of this year, less than 5 million credits have been issued by the ARB to date.