Making a difference today for a better world tomorrow.

Glossary

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – November 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – November 2019

Offset Supply Information”

All CCOs issued to date: 165.31 million

Compliance credits awaiting issuance: 27.34 million

CA and General Market Commentary:

  • On December 2nd, ARB announced that the 2020 Auction Reserve (floor) price will be $16.68. This was in line with expectations.  Our chart above has been updated to reflect this 2020 floor price, and we have begun estimating the 2021 floor price at $17.85.
  • On November 18th, ARB announced that it had opened an Invalidation Investigation against Scenic View Dairy, project CALS5040. The project is an agricultural methane capture project located in Michigan and is operated by Scenic View Dairy, LLC.  36,118 credits are under investigation.  Information released by ARB regarding the investigation can be found here: https://ww3.arb.ca.gov/cc/capandtrade/offsets/notice.of.offset.investigation.11.18.19.pdf
  • This is the third invalidation investigation announced by ARB in the history of the program. Previous investigations occurred in 2014 and 2016.  One invalidation did result from the investigation in 2014, causing the invalidation of 88,955 credits.
  • The announcement of the investigation caused some limited concern among buyers, reminding them that invalidation is a possible risk, but the small quantity being investigated is unlikely to significantly impact the market.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – October 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – October 2019

Offset Supply Information:

All CCOs issued to date: 164.23 million
Compliance credits awaiting issuance: 25.27 million 

CA and General Market Commentary:

  • On November 4th, ARB released the 2018 Emissions Report. Emissions for sources covered by the Cap and Trade Program decreased by 0.2% from 2017.  Reported emissions were 319.9 million MtCO2e, versus a cap of 358.3 million MtCO2e.
  • Through 2018, the surplus of allowances continued to grow, because actual emissions in 2018 were less than the 2018 allowance budget.
  • However, it is interesting to note that if actual emissions continue to decline by only 0.2%/year going forward, then in 2022, emissions will exceed the cap for the first time, and surplus allowances in the market would begin to be drawn down.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – September 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – September 2019

Offset Supply Information:

All CCOs issued to date: 163.79 million

Compliance credits awaiting issuance: 25.48 million 

CA and General Market Commentary:

  • September was a relatively quiet month. Light quantities of CCOs were issued by ARB, and the ROC backlog declined slightly.  CA allowance prices trended down slightly, but CCO prices were unchanged.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – August 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – August 2019

Offset Supply Information: 

All CCOs issued to date: 161.49 million 

Compliance credits awaiting issuance: 26.07 million 

CA and General Market Commentary: 

  • On August 27th, the California Air Resources Board announced the results of the 20th quarterly Joint Auction.  Current vintage allowances cleared at $17.16, a premium of $1.54 over the auction floor price for 2019 of $15.62.  The auction had a bid-to-cover ratio of 1.49.  87% of the current vintage allowances were purchased by compliance entities. 

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – July 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – July 2019

Offset Supply Information:

All CCOs issued to date: 157.88 million
Compliance credits awaiting issuance: 24.12 million

CA and General Market Commentary:

  • In July compliance offset prices continued to rise slightly despite a pull-back in CA allowance prices. This trend of increasing offset prices in the May-October timeframe is typical as we approach the interim compliance deadline and entities look to purchase a portion of their offset utilization limit.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

Offset Pricing Monthly Market Digest – November 2019

Offset Pricing Monthly Market Digest – June 2019

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – June 2019

Offset Supply Information:

All CCOs issued to date: 155.41 million
Compliance credits awaiting issuance: 23.10 million

CA and General Market Commentary:

  • Oregon will not pass a Cap and Trade bill this year. Oregon’s House passed a Cap and Trade bill, and it was expected that the bill would pass out of the Senate in June given the substantial Democratic majority in the Senate.  The bill was viewed as a possible first step to linking to the CA/QC program.  However, after a heated partisan dispute that included the Republican Senators leaving the state to avoid a vote on the bill, the bill has been abandoned, at least for this legislative year.  Democratic Governor Kate Brown has vowed to use the Executive Branch to implement a Cap and Trade program, but it is unclear how far her administration can go with their actions, and likely that they would not result in a fully linkable program.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.