PREVIEW: Federal risks, programme fundamentals shape RGGI Q2 auction outlook
A majority of the traders expected the Q2 RGGI carbon permit auction on Wednesday to clear close to secondary market levels, with few anticipating a discount, as observers considered a mix of federal threats, regulatory delays, and programme fundamentals that could shape the outcome.
Read MoreWhite House budgetary office proposes over 50% in budget cuts to EPA for 2026
The White House released supplementary details of plans to slash spending in 2026 as the US Senate debates the fiscal year 2025 budget reconciliation package.
Read MoreCalifornia infrastructure coalition outlines priorities as tussle for cap-and-trade revenues heats up
A recently formed coalition of California infrastructure businesses and labour union groups laid out their funding priorities from cap-and-trade auction revenues as lawmakers work on programme re-authorisation.
Read MoreCFTC: Investors cautiously reduce exposure in V25 CCA, RGGI, LCFS as futures prices weaken
Investors pared down net length in V25 California Carbon Allowances (CCAs) to November levels in wake of tempered expectations for the Q2 auction, while closing out their RGGI Allowance (RGA) and Low Carbon Fuel Standard (LCFS) long holdings in the face of regulatory uncertainty, according to US Commodity Trading Futures Commission’s (CFTC) data published Friday.
Read MoreWCI Markets: First undersubscribed auction in nearly 5 years hits the floor in Q2
The Q2 California-Quebec current vintage carbon auction settled at the floor price in line with secondary market prices and tempered market expectations, as California Carbon Allowance (CCA) futures have weakened through May in the face of unresolved federal risks and prolonged reauthorisation negotiations with state lawmakers.
Read MoreCalifornia’s latest offset issuance thins to 112k, no new DEBs
Offset issuance in California thinned over the latest two-week stretch, state data published Wednesday showed, with no new units offering direct environmental benefits to the state (DEBs).
Read MoreWCI Markets: Tempered Q2 auction expectations hold CCAs within narrow range
California Carbon Allowances (CCAs) traded within a narrow range into the second quarterly permit sale this week as the risk of federal legal action against the programme remains while trade in Washington Carbon Allowances (WCAs) activity was limited.
Read MoreNorth American Clean Fuels Markets: LCFS credit prices drop nearly 10% absent programme implementation clarity
California’s Low Carbon Fuel Standard (LCFS) credit values declined in the absence of certainty on implementation of proposed programme changes, while other US clean fuel schemes largely stabilised throughout May following regulatory and legislative actions in Oregon and Washington.
Read MoreRGGI’s allowance surplus bank declines over 11% YoY in 2024 -report
RGGI permits held in excess of compliance requirements declined 11.4% year-on-year in 2024, according to an annual market analysis.
Read MorePREVIEW: Tempered expectations for Q2 WCI auction as federal risks unresolved
Market expectations for California-Quebec’s Q2 allowance sale clear were toned down as a result of the overhang of potential federal legal action and prolonged programme extension negotiations with state lawmakers.
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