UPDATE – RGGI Q1 auction clearing price sinks to 1.5-year nadir on meagre speculative participation
The Q1 RGGI cap-and-trade auction this week cleared at the lowest level since Q3 2021 as financial participants took a back seat, according to results published Friday.
Read MoreCORRECTION: WCI Markets: CCAs reverse course on steep Washington auction settlement, WCAs trade above reserve price tier
California Carbon Allowances (CCAs) shrugged off an early-week sell-off after Washington state’s inaugural cap-and-trade sale cleared near $50, which in turn spurred Washington Carbon Allowance (WCA) values to begin trading above the scheme’s lowest allowance reserve price trigger on the secondary market.
Read MorePREVIEW: RGGI Q1 auction primed for lower clear as warm winter, speculative disenchantment weigh
Traders have largely coalesced around the March RGGI auction clearing either below or in line with secondary market pricing, as weak demand from compliance entities following a warmer winter and a lack of speculative enthusiasm threatens to overwhelm potentially bullish drivers on the horizon.
Read MoreCORRECTION: RGGI Market: RGA prices near 2-mth low despite programme review news, high auction prediction
RGGI Allowance (RGA) prices last week ended lower, continuing a month-long stretch of mostly losses and defying bullish drivers from an upcoming programme review as well as recent analyst projections for a steep Q1 auction settlement this week.
Read MoreEmitters pounce on CCAs, while speculators return to RGGI in early February
The US Commodity Futures Trading Commission (CFTC) on Friday continued publishing delayed Commitments of Traders reports following a cyber attack on the agency’s third-party data provider several weeks ago, showing that compliance entities padded their net long California carbon positions and speculators picked up RGAs in early February.
Read MoreWCI Markets: CCAs spike to 4-mth high on regulatory announcements, WCAs resume trading
California Carbon Allowance (CCA) prices shot up to new 2023 highs this week following a robust Q1 auction clear and encouraging regulatory announcements from several California ARB officials, while Washington Carbon Allowances (WCAs) recorded their first trades in months after the programme’s inaugural auction took place.
Read MoreVerra net assets skyrocket by 270% in two years on surging carbon credit issuances
Net assets from offset standard developer and manager Verra nearly quadrupled between 2019 and 2021 as carbon credit issuances spiked, according to its annual financial statement published Tuesday.
Read MoreCalifornia’s ARB to vote on tightening cap-and-trade programme by end-2024
California regulator ARB’s Board will vote on the state’s forthcoming regulatory package to strengthen the WCI-linked carbon market by the end of 2024, with those changes potentially going into effect the following year, a government official told a watchdog meeting on Tuesday.
Read MoreCarbon offsets enter catastrophe bonds for first time with reinsurance deal
Two reinsurance companies on Monday announced $125 million of collateralised reinsurance cover that includes a first of its kind carbon offset feature for the environmental impact of rebuilding homes after natural disasters.
Read MoreRGGI Markets: RGA prices slip on fewer coal, oil burns as auction approaches
RGGI Allowance (RGA) prices inched lower over the past week as market participants suggested mild weather and a lack of catalysts were killing volatility ahead of the power sector carbon market’s Q1 auction.
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