California carbon allowance auction settles at $13.62
The results from Tuesday’s California carbon allowance (CCA) auction were made public today, reporting a settlement price of $13.62 for 2013 CCAs.
According to the Air Resources Board’s Summary Statistics, all 12,924,822 California carbon allowances for delivery in 2013 were sold, with a mean bid price of $14.71.
The maximum bid price was $50.01.
In the heavily subscribed auction, there were nearly two and a half times as many bids as available carbon allowances.
Combined with the advance auction of 2016 CCAs, the auction generated over $223 million in revenue.
Regulated entities in the state must purchase carbon allowances to account for their annual emissions.
Businesses can also buy carbon offset credits to cover up to 8% of their emissions, which creates a potential demand for over 20 million carbon offsets between 2013 and 2014.
88% of the CCAs were purchased by compliance entities such as Chevron, Exxon, Pacific Gas and Electric, Phillips 66, and Southern California Edison.
In last November’s California carbon allowance auction over 23 million CCAs were sold, generating nearly $300 million in revenue to fund other emission reduction projects in the state.