California hails success of first cap-and-trade auction

Posted at November 22, 2012 » By : » Categories : News » Comments Off on California hails success of first cap-and-trade auction

Californian officials are hailing the success of the state’s first cap-and-trade auction of carbon emission permits but sale price was not as high as predicted.

Chair of the California Air Resources Board (ARB) Mary D. Nichols commented:
“The auction was a success and an important milestone for California as a leader in the global clean tech market.”

But while all the 23 million allowances for the 2013 ‘vintage’ – or V2013 Californian Carbon Allowances (CCAs) – were sold, the price was only just over the $10 reserve price ($10.09).

Sales for the 2015 vintage (V2015 CCAs) stood at just over 5.5 million out of 39.5 million offered, or around 14%, also at a price of $10.

Nevertheless, the auction still pulled in $290 million in revenue for the state and around 350 companies took part.

Most of the V2013 CCAs went to utilities and large industrial polluters, according to ARB, which are required to participate in the scheme.

Interest was less strong in the V2015 CCAs, perhaps because of the last minute lawsuit filed by the state’s Chamber of Commerce to halt the scheme.

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Related stories:
California kicks off cap-and-trade scheme with first auction (15-Nov)
California to allow Quebec to join cap-and-trade programme (11-May)
New Jersey governor pulls out of US cap-and-trade programme (11-Jun 2011)

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