800,000 California carbon allowances trade
California carbon allowances (CCAs) for use in the state’s carbon market continued to move in high volumes this week, as 800,000 CCAs traded over the week.
Market activity has skyrocketed since January 1, when the California carbon market’s first compliance period began. Over 3,000,000 CCAs have traded since the beginning of the year.
The price for CCAs to be delivered in 2013 closed the week at $14.25, following news that the San Onofre nuclear power plant that suspended operations early last year had an uncertain timetable to restart electricity generation.
The San Onofre facility provided nearly 8% of California’s energy supply, with zero emissions, since nuclear power does not require the combustion of fossil fuels.
Southern California Edison (SCE), the owner of the nuclear power plant, has had to make up for the lost supply of energy by increasing production at coal and natural gas power plants, thereby adding to their emissions and pushing them closer to the mandated carbon cap.