Offset Pricing Monthly Market Digest – July 2018

by | Aug 23, 2018

Offset Supply Information:
All CCOs issued to date: 113.63 million
Compliance credits awaiting issuance: 32.71 million

CA and General Market Commentary:
• Offset prices have continued to remain at historically elevated levels, but with an important caveat- the prices shown for offsets above are for offsets that can be delivered before the November 1st triennial compliance deadline. This year is of particular importance, as entities are going to be completing their final submissions for the full 3-year 2015-2017 triennial period.

• ARB’s backlog of Registry Offset Credits (ROCs) increased slightly in July. Issuances in July continued to be modest. Several very large forestry projects have remained in the queue for an extended period.

• ClimeCo has again increased its estimate for the 2019 CA Auction Floor price for Allowances up to $15.68. This upward revision reflects recent US data showing that the CPI-U is on pace to be 2.8%-3.0% during the 2017-2018 period. The CA Allowance auction floor price escalates each year at the rate of 5% plus CPI-U.

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