Offset Pricing Monthly Market Digest – September 2021
by Derek Six | October 6, 2021
Offset Supply Information:
All CCOs issued to date: 225.32 million
Compliance credits awaiting issuance: 23.40 million
CA and General Market Commentary:
- CCA prices climbed in September. Events positively impacting CCA prices included California Governor Gavin Newsom’s successful defense against his re-call election and the increase in trading from financial players in the California market.
- While widely expected, Governor Newsom’s victory was seen as protecting against a possible threat to California’s program.
- This year several new ETFs have opened which seek to reflect the performance of the CCA market and this influx of speculative capital has increased demand for the instruments.
- Offset (CCO) prices moved upward during September as compliance entities purchased offsets for use at the November 1st triennial compliance deadline, but the spread between CCO-0s and CCAs increased further to a 38% discount to allowances, another new record high discount %.
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