Offset Pricing Monthly Market Digest – January 2020

by Derek Six | Feb 4, 2020

Offset Supply Information:

All CCOs issued to date: 170.43 million

Compliance credits awaiting issuance: 32.59 million

CA and General Market Commentary:

On January 30th, the California Air Resources Board (ARB) announced the results of their investigation into alleged regulatory violations at the Scenic View Dairy. As a result of the investigation, which was initiated on November 18, 2019, ARB is invalidating 18,867 CCOs generated by the project, CALS5040-C, Scenic View Dairy. This marks the completion of the third invalidation investigation conducted by ARB in the program’s history, and the second time CCOs have been invalidated.
To date, less than 1% of all issued offsets have been invalidated. However, each invalidation event reminds participants of the potential risk and potentially impacts small emitters desire to purchase non-guaranteed CCOs.
ARB’s next quarterly allowance auction will be held on February 19th, with results announced February 26th.

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.