$1.1 Billion Raised in Record Breaking Carbon Auction Sellout
The California Air Resources Board held another sellout auction in the first quarter of 2020, as all 65.7 million California Carbon Allowances (CCAs) were purchased.
Current vintage CCAs reached a settlement price of $17.87, an all-time high and well above the floor price of $16.68. All 57 million offered current vintage CCAs sold out. A significant portion of CCAs were purchased by non-compliance entities, demonstrating continued engagement from speculators looking to capitalize on the low prices they believe underestimate the true value of the carbon market. Future vintage CCAs for use beginning in 2023 also broke the previous price record as it settled at $18.00. The sellout of all 8.6 million 2023 CCAs produced revenues of $156 million.
Cumulatively, the latest auction resulted in the sale of 65.7 million CCAs, generating almost $1.2 billion. To date, 1.77 billion CCAs have been sold at auction, resulting in over $25.1 billion in funds to create emission reduction projects and improve air quality.