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 %.

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.

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