Offset Pricing Monthly Market Digest – November 2021

by Derek Six | November 6, 2021

Offset Supply Information:

All CCOs issued to date: 231.13 million

CA and General Market Commentary:

• The California Air Resources Board (ARB) has released the 2022 Auction Reserve Price. The auction floor price will be $19.70 for each of the four auctions held in 2022, up from the 2021 floor price of $17.71.  This increase is due in part to a 5% annual escalator, and in part to the large increase in inflation for 2021 as expressed in the CPI-U index change from November 2020 through October 2021.
• November Auction Results- ARB announced on November 24th that the 4th quarterly auction had sold 68.6 million current vintage allowances at $28.26. The auction had a bid-to-cover ratio of 1.51.  3% of allowances were purchased by compliance entities, the rest were purchased by speculators and other intermediaries.

ClimeCo is a respected 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.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.