Offset Pricing Monthly Market Digest – October 2019
Offset Supply Information:
All CCOs issued to date: 164.23 million
Compliance credits awaiting issuance: 25.27 million
CA and General Market Commentary:
- On November 4th, ARB released the 2018 Emissions Report. Emissions for sources covered by the Cap and Trade Program decreased by 0.2% from 2017. Reported emissions were 319.9 million MtCO2e, versus a cap of 358.3 million MtCO2e.
- Through 2018, the surplus of allowances continued to grow, because actual emissions in 2018 were less than the 2018 allowance budget.
- However, it is interesting to note that if actual emissions continue to decline by only 0.2%/year going forward, then in 2022, emissions will exceed the cap for the first time, and surplus allowances in the market would begin to be drawn down.
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