Weekly Carbon Outlook – June 26, 2017

June 26, 2017 by Ronjoy Bezbarua

(See below to download report)

Trading Report

  • Cap-and-trade extension proposal boosts market sentiment
  • 8,440,000 tons traded with 70.8% concentrated on V2017, 26.9% on V2018
  • Current front contract, Jun 17, closed week at USD 14.37, USD 0.22 up from previous week’s close
  • A net change of 2,120,000 observed on open interest creation
  • OCA prices close at CAD 19.26 (USD14.52)

Price Expectations

  • The current front reached its new peak of USD 14.37 during an active trading week
  • Covered entities in CA and QC still required to buy over 175 million of allowances from the next two joint auctions in order to meet their compliance obligation of the second compliance period.
  • Expected V17 ranges: $14.28- $14.36 (Front); $14.46- $14.52 (2017 Benchmark)

CCO Tracker

  • 5 million ROCs issued the Climate Action Reserve.
  • Mescalero Apache Tribe IFM (CAR1183) becomes the fourth largest project with4.4 million The project is also the first compliance project to be listed in New Mexico.
  • Mendocino Redwood Company receive first issuances for Hollow Tree (CAR1191) forestry project.
  • CCO-8 close at USD 10.86, USD 0.11 higher than the previous week.

Policy Tracker

  • SB 100- Introduced by Senate President Pro Tem Kevin de León, it requires California to generate all its electricity from renewables.
  • SB 498-Introduced by Senator Skinner. It is an act to add Section 43018.8 to the Health and Safety Code, and to add Section 25724 to the Public Resources Code, relating to vehicular air pollution
  • SB 775 – It would now no longer allow banking of allowances and use of offsets in the cap-and-trade program beyond 2020. It also prevents free allocation of allowances and thus incentivise industry to invest in cleaner technology.

Key Dates

  • June 29 – Public hearing to consider proposed amendments to the regulation for the mandatory reporting of Greenhouse Gas Emissions

Download this report (pdf)

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