145,000 California carbon allowances trade
The price for California carbon allowances (CCAs) rose to $19.10, continuing an upward trend that now extends back a number of months.
The California carbon market also saw solid volumes exchange hands, with 145,000 CCA forward contracts closing over the Intercontinental Exchange.
Market analysts point to the closure of a nuclear power plant as explanation for rising prices.
Since the nuclear plant provided nearly 8% of state-wide electric demand, that difference will have to be made up by increasing electricity generation from fossil fuel plants that emit much larger quantities of carbon dioxide.
This will make it more difficult for regulated businesses to remain under California’s imposed cap, forcing them to acquire additional CCAs as well as carbon offset credits.