California carbon credits to trade up to $14 in 2013
California carbon credits are expected to trade upwards of $14 apiece this year, according to a broker with Evolution Markets.
Speaking at this week’s Navigating the American Conference World conference, the broker was commenting on the current state of the market when he hit on the available supply of California carbon credits.
With only four project protocols approved for use by the regulating California Air Resources Board (ARB), California carbon credits are expected to be in short supply.
As a result, large businesses facing new emission regulations this year have already begun seeking out available offsets.
Last year the Sacramento Municipal Utilities Department issued a Request for Offers (RFO) for 200,000 California carbon credits. Following suit, Pacific Gas & Electric released a RFO to purchase California carbon credits in March.
Shell Energy announced a deal for 500,000 California carbon credits to help meet the compliance obligation of their operations in California.
The ARB has begun listing carbon projects that plan to transfer over to the compliance market. However these projects must first undergo an additional ARB verification so it is unlikely for any California carbon credits to be approved until later this spring.