1.2 million California carbon allowances trade
This week saw large volumes of California carbon allowances trade, as over 1 million CCAs were transacted.
Future California carbon allowances to be delivered in 2016 continue to draw interest demonstrating how regulated businesses are already planning ahead to meet their compliance obligations.
Beginning this year, large businesses like power plants, fuel refineries and cement plants must being account for their annual emissions.
They must then purchase either California carbon allowances (CCAs) or carbon offset credits to cover their total emissions.
Regulated businesses can buy carbon offset credits to meet up to 8% of their compliance obligation, creating the demand for up to 200 million credits by 2020.
Prices for California carbon allowances held steady at $12.10 for the third week in a row.
Later this month the California Air Resources Board will hold a meeting to decide on proposed amendments to the carbon market.