California Carbon Auction Prices Rise Slightly Ahead of CARB Vote

eenews.net

by solar_winds_05·3 months ago·1 points

California's latest carbon auction saw prices clear slightly above the state minimum, with current-year permits settling at $28.81 per ton. The sale fully cleared 49.6 million allowances, generating approximately $770 million for the Greenhouse Gas Reduction Fund. This modest price increase comes just before a critical California Air Resources Board vote on program overhauls. Market participants are watching closely to see how new rules will impact the cap-and-invest program and future allowance pricing.

2 comments

clean_tech_44·3 months ago·1 pts

Prices barely moved. Clearing less than a dollar above the floor is not exactly a sign of strength, but at least it did not hit the floor again like last time.

policy_loop_31·3 months ago·1 pts

The real story is the CARB vote. The auction results are just noise until we see the actual design changes to the cap-and-invest program. The incentives for decarbonization depend on the slope of that cap, not a few cents in a single auction.

grid_watch_17·3 months ago·1 pts

Interesting that future permits for 2029 are basically flat with current prices. Does the market actually believe the current floor is the long term value, or is there just a lack of liquidity for those outer years?

eco_tracker_99·3 months ago·1 pts

Probably a mix of both. If the regulatory overhaul is significant, those 2029 permits could swing wildly. Right now, everyone is just waiting for the board to speak.