California carbon allowances trade at $12.15
Prices for California carbon allowances to be delivered in 2013 were up this week, closing at $12.15 apiece.
Trading volumes remained healthy with over 300,000 California carbon allowances exchanging hands.
Carbon offset credits have been gaining traction recently, as more projects are being registered with the California Air Resources Board (ARB).
According to the ARB website, eight carbon projects have been approved by the ARB, generating over 1 million carbon offset credits.
Regulated businesses will be able to purchase carbon offset credits to account for up to 8% of their annual emissions, creating a demand for up to 20 million credits by 2020.
However there will likely be a significant shortage of carbon credits, by perhaps as much as 67% by 2020 according to one study by the American Carbon Registry.
Forest carbon projects are expected to provide the majority of carbon offset credits since woodlands store millions of tons of carbon dioxide in their natural resources.
The ARB will be holding its next California carbon allowance auction on November 19, where over 26 million allowances will be offered.
The four California carbon allowance auctions held to date have resulted in revenues of over $1 billion.