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Offset Pricing Monthly Market Digest – October 2019

by | Nov 11, 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.

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.