CCA prices surge by 5% in reaction to California’s second carbon auction; allowances cleared at $13.62

February 25, 2013 by California Carbon

Climate Connect News, London: The results of the second auctioning session of greenhouse gas allowances under the California Cap-and-Trade Scheme conducted recently on 19 February, 2013 are finally out. Clearly the high bidding prices witnessed during the session are symptomatic of the bolstered faith of the obligated companies under the scheme.

The auction included a Current Auction of 2013 vintage allowances and an Advance Auction of 2016 vintage allowances.

The session saw entities bidding for current auction of 2013 vintage allowances at prices as high as $50.01 per tonne. However, the settlement price of the 2013 vintage allowances at $13.62, was higher than that observed during the first auctioning session when the settled price was $10.09 per tonne. The reserve price of the auction was set at $10.71 per tonne.

The entire volume of California Carbon Allowances (CCAs) of 2013 vintage, over 12.9 million, available for sale was purchased by the compliance entities. The average bid price was $14.71 per tonne.

The demand for 2016 vintage allowances was about 46% of the supply. 9.56 million Allowances with 2016 vintage were offered out of which 4.44 million allowances were cleared. The highest bid quoted shot up to $40.00 per tonne. The average bid price was $12.40 but the allowances were cleared at the reserve price of $10.71 per tonne.

The auctioning session quite reinforced the current California Allowance prices with December 2013 prices on 22 February settling at $14.90, a 5.67% rise from $14.10, registered a day before. Similarly, a 5.3% increase was recorded on 22 February, in the December 2014 and December 2015 California Allowances prices.

California’s emissions trading scheme is part of the state’s Global Warming Solutions Act of 2006 which aims to reduce the state’s greenhouse gas emissions to 1990 levels by 2020.

For more information about this article, contact: info@climate-connect.com

  • Facebook
  • Google
  • LinkedIn
  • Twitter
  • Email