Weekly Carbon Outlook – 11 Dec 2017

December 11, 2017 by chandan.kumar

Trading Report

  • CCA prices plunged 29-31 cent drop across the curve on Thursday, a day after Ontario announced an under-subscription of the V17 OCAs
  • The current front and benchmark (V17 Dec17) closed the week at USD 14.95
  • Open interest contracts saw a dramatic gain since last week of 2,791,000contracts
  • The total traded volumes saw a 50% increase from the previous week as 11,295,000 tons were traded

Price Expectations

  • Market likely to recuperate from last week’s fall as fundamentals take hold again
  • Unsold supply in Ontario should materialize as demand in 2018
  • Price floor impacts not expected as year transitions

CCO Tracker

  • A massive 6 million ROCs were approved by the Climate Action Reserve last week.
  • The bulk of the credits went to the forestry project Finite Carbon – Ahtna Native Alaskan IFM (ACR360) which received 5 million ROCs with over 2.3 million in the buffer pool
  • CCO prices saw a decline last week with CCO 3s seeing the highest decline
  • The backlog of ROCs awaiting ARB’s approval shot up to an all-time high of 9 million due to the ROC issuances last week

Key Dates

  • Dec 14-Third Public Board Meeting on the Proposed Scoping Plan
  • Jan 1-California and Quebec’s Cap-and-Trade program will link with Ontario’s Cap-and-Trade Program

Download this report (pdf)


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