California carbon prices nudged slightly higher this week, with trading picking up following a lull accompanying last week’s release of WCI quarterly auction results.
The Dec-15 CCA settled up 3 cents week-on-week to $12.67 on ICE. Weekly volumes were triple that of the previous week, making it one of the most actively traded of the year.
The market was especially robust on June 3, the same day the California legislature advanced three bills that would boost prospects for the WCI, including a measure to indefinitely extend California’s cap-and-trade mechanism beyond its 2020 sunset.
Nearly 1.4 million tons changed hands on ICE that day.
In the east, RGGI activity nearly came to a standstill in the secondary market this week as traders awaited the outcome of a June 3 auction – the results for which were posted Friday.
Allowances for Dec-15 RGGI units added a penny to settle at $5.50 on ICE yesterday, putting prices in line with those in what turned out to be a fully subscribed auction.
But despite record prices and increased participation by speculators, the auction did little to spark activity in the secondary market today, ICIS reported.
By Robert Mullin – firstname.lastname@example.org