Emitters offload allowances following WCI auction results, speculators build
Compliance entities massively reduced their California Carbon Allowance (CCA) holdings over the past week following the publication of Q4 WCI auction results, while financial players bolstered their net long position, according to US Commodity Futures Trading Commission (CFTC) data published Friday.
Read MoreCalifornia industrial allowance allocations decline in 2022 after COVID-affected year
California’s free carbon permit distributions to industrials dropped by roughly one third for 2022 after the coronavirus pandemic throttled production from some facilities, according to data from state regulator ARB published Friday.
Read MoreFEATURE: Climate finance, not offsets, increasingly seen as a nature-based solution as critics persist
With nature-based credits valued at a growing price premium to other types of carbon offsets, scrutiny over the process is also on the rise, with even forest protection standards that are said to be raising the bar on quality finding criticism for lacking environmental integrity.
Read MoreBritish Columbia not considering LCFS price cap even as credit values soar
British Columbia Low Carbon Fuel Standard (LCFS) credits reached new highs last month, but the province isn’t likely to move forward with a price cap, a government official told a conference Thursday.
Read MoreNA Markets: CCAs routed after post-auction rebound, RGAs drift before sale results
California Carbon Allowances (CCAs) were taken to the woodshed this week as ICE’s margin hike and coronavirus worries weighed on a market still recovering from a surprisingly low auction settlement, while RGGI Allowance (RGA) prices trended down as traders awaited the result of the power sector scheme’s own Q4 sale.
Read MoreWCI offset usage in 2018-20 tops 7%, compliance data shows
Emitters in California’s carbon market used offsets to cover nearly 7% of their emissions during the 2018-20 compliance period, government data released Wednesday showed, while Quebec’s usage rate came in slightly higher.
Read MoreHot US inflation readings send WCI floor price up 11% for 2022, as auction size announced
The reserve price in California and Quebec’s carbon market auctions will rise to $19.70 in 2022 after higher inflation drove up the minimum bid value by more than 11% year-on-year, as the WCI jurisdictions also announced next year’s auction size.
Read MoreWCI emissions to stay just below cap in 2022, say analysts
GHG emissions under the California-Quebec cap-and-trade programme next year will continue to bounce back from a COVID-induced downturn and sit just below the WCI system’s combined allowance budget, analysts told a conference on Wednesday.
Read MoreUPDATE – Undersubscribed Nova Scotia carbon auction clears at floor, C$15 below previous sale
Nova Scotia’s fourth cap-and-trade auction failed to sell out and cleared at the scheme’s price floor, the provincial government announced Tuesday.
Read MoreICE to launch index-based carbon futures as UK permits make their debut
ICE is set to revamp its carbon price index to include UK emissions allowances, and will offer a new futures contract to track it.
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