September 23, 2013 by California Carbon
Climate Connect News, London: The California Air Resources Board (ARB) has announced that it will offer over 26 million California Carbon Allowances (CCAs) during the fifth auction scheduled for 19 November 2013.
The Board will offer over 16.6 million 2013-vintage and 9.56 million 2016-vintage allowances. The 2013 Annual Auction Reserve Price Notice was updated on 15 January 2013 to reflect an annual auction budget for 2013 vintage allowances at 57,628,254. Based on the allowances offered in the November 2013 auction, the final annual auction budget for 2013 vintage allowances is in fact 57,926,818. This reflects adjustments in allocations based on minor updates to reported data.
During the first auction, held in November 2012, about 22.4 million allowances of 2013 vintage were transacted at $10.09 per allowance, and about 5.57 million allowances of 2015 vintage were transacted at $10 per allowance. The first auction fetched about $282 million in revenue. The second auction was held in February 2013. During this auction, about 12.9 million allowances of 2013 vintage were sold at $13.62 per allowance and about 4.4 million allowances of 2016 vintage were sold at $10.71 per allowance. The second auction fetched $223 million in revenue.
During the third auction held in May 2013, 14.55 million allowances of 2013 vintage were auctioned at $14 per allowance, about 9.56 million allowances of 2016 vintage were auctioned at $10.71 per allowance. The third auction fetched a record revenue of $284 million.
During the fourth auction held in August 2013, the Board raised over $275 million in revenue through the sale of over 13.8 million 2013 vintage allowances at $12.22 per allowance and 9.56 million 2016 vintage allowances at $11.1 per allowance.
If the trends observed in the last auction and conditions in the secondary market are any indications, the demand for 2016 vintage allowances may once again be higher than the demand for 2013 vintage allowances.
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