290,000 California carbon allowances trade
The California carbon market started the New Year on a very positive note, seeing 290,000 California carbon allowances (CCAs) for delivery in 2013 exchange hands.
Prices for 2013 CCAs shot up to over $16 on the first day of trading since the market’s initial compliance period began on January 1.
California’s next carbon allowance auction is scheduled for February 19 and will see the floor price rise to $10.71. However a Bloomberg report forecasts that vintage 2013 CCAs will average $14.06 through the remainder of the year.
A Barclays Capital report predicts that CCAs will average $14 during the market’s first compliance period which runs from 2013-2014. During the second compliance period, which runs from 2015-2017, CCAs are expected to sell between $26-$36 before reaching a peak of $49-$68 in the third compliance period which covers emissions from 2018-2020.