Weekly Carbon Outlook – May 15, 2017

May 15, 2017 by Ronjoy Bezbarua

(See below to download report)

Trading Report

  • Trading activities maintained a respectable total of 9,303,000 tons in traded volume
  • The CCA front price rose to USD 14.01 by the end of the week
  • OCA’s Dec 17 benchmark trading at CA$ 19.24 (US$14.03), USD 0.14 below CCA equivalent

Price Expectations

  • California Chamber of Commerce now wants to work with lawmakers to extend the cap-and-trade program beyond 2020.
  • A subscription ratio of over and above 0.78 is required to prevent quarterly shortage.
  • Expected V17 ranges: $14.00- $14.10 (Front); $14.20- $14.28(2017 Benchmark)

CCO Tracker

  • Over 40,000 new CCOs issued by ARB
  • Yippee Farms (CAR1232) only new project to receive ARBOCs whilst three more livestock projects gain subsequent credits.
  • Quebec hand out 21,800 offsets in first issuance in ten months.
  • SB 775 continues to cast uncertainty over longer term prospects of Californian offsets.

Policy Tracker

  • 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

  • May 16 – WCI Joint Auction to offer years 2014 and 2017 vintage allowances in the Current Auction and year 2020 future vintage allowances in the Advance Auction.
  • May 25 – ARB Public workshop meeting to consider California’s proposed state plan for the federal municipal solid waste landfill emission guidelines

Download this report (pdf)

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