Offset Pricing Monthly Market Digest – April 2022

by Derek Six | May 6, 2022

Offset Supply Information:

All CCOs issued to date: 237.48 million

CA and General Market Commentary:

• ARB holds its next quarterly auction on May 18, 2022, with results announced May 26, 2022.
• Several new bills dealing with Cap-and-Trade issues have been introduced in the CA legislature. The most noteworthy for offset market participants is SB 1391, which includes a number of new linking requirements including the requirement that, “If a market-based compliance mechanism proposed for linking has issued or is authorized to issue an offset credit that can be used for compliance purposes, then the market-based compliance mechanism includes a provision that automatically reduces the number of emissions allowances it makes available for compliance purposes by a number that is equivalent to the climate benefits claimed by either of the following:
  • The issuance of all offset credits, as observed historically and on an ongoing basis.
  • The retirement of all offset credits used for compliance purposes, as observed historically and on an ongoing basis.”
• This proposed rule appears to attempt to mirror a Washington state rule.

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related services. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs.  Complimenting these programs is a team of professionals skilled in providing sustainability program management services and developing and financing of GHG abatement and mitigation systems.

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