California carbon allowances trading at $13.80
The price for California carbon allowances has hovered around $14 in the past several weeks, and came to a close at $13.80, nearly unchanged from a week ago.
A total of 450,000 California carbon allowances were traded over the course of the week.
Trading volumes are somewhat down as market participants await the next allowance auction to be held August 16.
At the most recent auction in May, California carbon allowances reached $14, their highest price to date.
Regulated businesses in the state purchase allowances to account for their annual emissions.
Instead of allowances, these companies can choose to buy carbon credits to cover up to 8% of their emissions.
Earlier this week the first carbon credits for use in the California market were issued by the American Carbon Registry, one of two organizations that will be responsible for verifying and managing any projects that will be supplying carbon credits to California.
Carbon credits act as a cost containment mechanism to keep allowance prices from skyrocketing.
Credits are typically acquired at a discount to allowances, but with such limited supply any regulated businesses will be on the lookout for available credits.