The scheme is the first of its kind in the US and is expected to create the second largest carbon market in the world after the European Union’s Emissions Trading System (EU ETS).
In the first three-hour auction, administered by California’s Air Resources Board, a total of 61.2 million carbon allowances were offered for sale.
The biggest emitters in the state, including utilities Pacific Gas Electric and Southern California Edison, were able to bid for allowances covering 2013 and 2015.
There has been some trading of allowances up to this point, the auction yesterday was the first major injection of funds into the market.
The auction went ahead despite a last minute effort on behalf of the California Chamber of Commerce to challenge the scheme.
A spokesperson for ARB is reported to have said that the organisation is confident that the cap-and-trade programme can withstand any legal challenges.
EU and Australia set out plans to link carbon trading schemes (5-Sept)
California to allow Quebec to join cap-and-trade programme (11-May)
South Korea moves ahead with cap and trade scheme (3-May)
New Jersey governor pulls out of US cap-and-trade programme (11-Jun 2011)
California releases final proposal for cap-and-trade scheme (2-Nov 2010)
Article source: http://www.energyefficiencynews.com/i/5545/