Offset Pricing Monthly Market Digest – January 2021

Offset Supply Information:

All CCOs issued to date: 215.27 million
Compliance credits awaiting issuance: 15.61 million

CA and General Market Commentary:

• • The CCO-0 quote above now reflects the August settlement date rather than the previously reported December 2021 settlement. We have made this shift because we expect increased interest in CCO-0s in Q1-Q3 as the compliance deadline for CP3 (2018-2020) on November 1st, 2021 nears.
  • We have increased our estimate for the 2022 California auction estimated floor price due to increased inflation expectations for the period November 2020 through October 2021.
  • The next auction will be held on February 17th, with results released on February 24th. This auction will offer 54.77 million allowances, down from the 57.56 million allowances that were offered on average in the 2020 auctions.  Pricing in the futures market currently predicts that the February auction will sell out, but will clear at or near the floor price of $17.71.

ClimeCo is a respected project developer, advisor, and trader of environmental commodity market products. Specialized expertise in sustainability, 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.