Carbon offsets jump to $11 in California
Although many carbon market players took time off from trading to attend the Navigating the American Carbon World conference in San Francisco, carbon offsets saw prices rise to $11.
With only four offset types accepted for use in the California carbon market there have been concerns over a lack of supply. Some analysts predict there are not enough offsets to meet even half of the demand they will see. Regulated emitters are able to purchase carbon credits to account for up to 8% of their reduction targets, which comes out to a need for over 200 million offsets by 2020.
Administrators at the Environmental Protection Agency stressed the importance of offsets in the carbon market, since they provide can provide cost effective emission reductions at a market driven price.
No California carbon allowances (CCAs) traded this week in lieu of the climate conference, but the last recorded transaction occurred for $13.90 each.