400,000 California carbon allowances trade
Over 400,000 California carbon allowances for delivery in 2013 exchanged hands in steady volumes over the week.
Prices for 2013 vintage California carbon allowances continued to hover around $12.
With the year coming to a close, businesses have shifted their focus to acquiring California carbon allowances to be delivered in 2016.
Carbon offsets have gained attention over the past few weeks following the issuance of the first Air Resources Board Offset Credits (ARBOCs) that can be used in the state compliance market.
California businesses will be able to purchase ARBOCs to cover up to 8% over their annual emissions, creating the demand for up to 20 million credits by 2014.
Less than 1 million ARBOCs have been issued so far to projects that involve the destruction of potent Ozone Depleting Substances that are very harmful if they are allowed to leak into the atmosphere.