PREVIEW: ARB’s ETS rulemaking delays recast WCI Q4 auction sentiment lower, outsized ACP positions skew expectations
A larger cross-section of traders polled expect the last quarterly California-Quebec current vintage carbon allowance auction for 2024 to clear discounted to front-month California Carbon Allowance (CCA) prices after market sentiment soured with ARB delaying cap-and-trade regulatory updates, but unusual Auction Clearing Price (ACP) futures open interest (OI) could skew the outcome.
Read MoreWashington clarifies timeline for cap-and-invest changes after linkage bill takes effect
Washington state’s Department of Ecology (ECY) on Monday highlighted upcoming cap-and-trade changes as a linkage bill takes effect beginning 2025, including an increase in allowance purchase limit at the quarterly auctions, offsets, and electricity imports.
Read MoreRGGI Market: Prices slide on thin volumes as observers await regulatory updates
RGGI Allowance (RGA) prices retreated on lighter market activity amidst anticipation of additional announcements regarding the ongoing Third Program Review.
Read MoreNorth Dakota approves permit for contentious CO2 pipeline after months of deliberations
North Dakota’s Public Service Commission (PSC) has approved a permit for a multi-state CO2 pipeline, clearing a path for project development in the state amid permitting struggles in other regions.
Read MoreWashington state’s cap-and-trade scheme records strong compliance in inaugural year
Most entities covered under Washington’s cap-and-invest programme fulfilled their annual compliance obligation in 2023 as only one entity fell short, a report from the state’s Department of Ecology (ECY) released Friday showed.
Read MoreCFTC: Investor CCA sentiment sours with regulatory delays, emitters boost overall holdings across North American carbon markets
Financial entities axed their net California Carbon Allowance (CCA) holdings into the upcoming Q4 auction and with the delay in highly-anticipated regulatory updates that pulled prices lower this week, while producers built their positions across North American carbon markets, according to data released Friday from the US Commodity Futures Trading Commission (CFTC).
Read MoreCalifornia’s environmental justice advisory body recommends scrapping ETS free allowances, offsets
California regulator ARB’s Environmental Justice Advisory Committee (EJAC) on Thursday approved a set of recommendations for cap-and-trade programme revisions, which included calls to eliminate free allowances and offsets.
Read MoreWCI Markets: CCA sentiment sours ahead of Q4 auction
California Carbon Allowances (CCA) futures sold off sharply through the week ahead of the last quarterly allowance sale – with traders concerned over the lack of movement on the regulatory front from ARB – diverting attention away from the increase in Washington Carbon Allowance (WCA) prices.
Read MoreUS DOE allocates $20.2 mln to advance algae development for low carbon fuels, bioproducts
The US Department of Energy (DOE) on Thursday announced $20.2 million in funding to support research and development efforts to convert algae into low carbon fuels and bioproducts.
Read MoreUS appeals court hears arguments on Washington’s cap-and-trade lawsuit
A US appellate court on Wednesday heard arguments in an appeal of a district court’s ruling against a power producer’s challenge to Washington’s no-cost permit allocation provisions under the cap-and-trade scheme.
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