Weekly Carbon Outlook – Oct 16, 2017

October 16, 2017 by Ronjoy Bezbarua

(See below to download report)

Trading Report

  • CCA prices rose from mid-week to Friday, closing at $15.31 for the front (V17 Oct17) and $15.36 for the benchmark (V17 Dec17) with a weekly gain of USD 0.09
  • OCA Dec 17 benchmark prices rose to CAD 19.17 (USD 15.35)
  • OI saw a positive net change of 215,000 contracts
  • Weekly traded volumes fell steeply to a yearly record low at 867,000 tons

Price Expectations

  • Indicators point to a trend reversal in the coming weeks as prices hit resistance level
  • Covered entities in WCI still require over 61 million CCAs from current or previous vintages to meet their triennial (2015-17) compliance obligation.
  • November auction could see WCI oversupplied once more

CCO Tracker

  • Over 1.1 million ARBOCs were issued to four projects over the past week by ARB
  • A combined 131.8K ROCs were issued over the 10th of October to two projects
  • The backlog of ROCs now stands at over 31 million

Policy Tracker

  • SB 100- (Kevin de León) The California Renewables Portfolio Standard Program would double up California’s renewable energy ambition, mandating 100% RE procurement by 2045. It got amended in Assembly on 11th Sep 2017
  • SB 498- (Skinner) Beginning no later than 2024-2i025 fiscal year, at least 50% of the light-duty vehicles purchased for the state vehicle fleet each year must be zero emission vehicles. It was passed in Senate on Sep 14 and enrolled on Sep 19th

Key Dates

  • Oct 17- Public Meeting on development of the new Community Air Protection Program.  This new program is mandated by AB 617, the companion bill to the recently passed cap-and-trade extension.


Download this report (pdf)

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