Glossary

Offset Pricing Monthly Market Digest – December 2021

Offset Pricing Monthly Market Digest – December 2021

Offset Pricing Monthly Market Digest – December 2021

by Derek Six | January 7, 2022


Offset Supply Information:

All CCOs issued to date: 231.55 million

CA and General Market Commentary:

  • Following the announcement of the November auction’s settlement price of $28.26, CCA prices continued to be volatile in December. With a historically large number of December CCA futures contract open, volatility continued throughout the month as traders rolled positions forward and prepared for the December 27th closing of the December contracts. The ICE December 2021 CCA contract settled at $30.96, and in the remaining few trading days of the 2021 year, prices moved upward to end at $32.45.

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.

Offset Pricing Monthly Market Digest – November 2021

Offset Pricing Monthly Market Digest – November 2021

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.

Offset Pricing Monthly Market Digest – November 2021

Offset Pricing Monthly Market Digest – October 2021

Offset Pricing Monthly Market Digest – October 2021

by Derek Six | November 8, 2021


Offset Supply Information:

All CCOs issued to date: 229.31 million

CA and General Market Commentary:

  • CCA prices continued to climb in October, while CCO prices were largely stable.
  • November 1st was the deadline for compliance true-up for the 2018-2020 triennial compliance period. Some hurried buying of CCOs for compliance optimization was noted, but the significant price changes and demand crunch that occurred during the last triennial compliance period did not appear to occur.

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.

Offset Pricing Monthly Market Digest – November 2021

Offset Pricing Monthly Market Digest – September 2021

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.

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.

Offset Pricing Monthly Market Digest – November 2021

Offset Pricing Monthly Market Digest – August 2021

Offset Pricing Monthly Market Digest – August 2021

Offset Supply Information:

All CCOs issued to date: 224.91 million

Compliance credits awaiting issuance: 16.06 million

CA and General Market Commentary:

  • Results for the August CCA auction were announced on August 25th. Current vintage CCAs cleared at a record-high price of $23.30, $5.59 over the 2021 auction floor price. The bid-to-cover ratio was a high 1.85, and 32.5% of the allowances were purchased by speculators rather than compliance entities.
  • Offset (CCO) prices moved upward as well during
    August, but the spread between CCO-0s and CCAs increased to a 35% discount to allowances, a new record high discount %.

ClimeCo is a respected advisor, transaction facilitator, and trader 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.

Sources

The definitions in this glossary have been reprinted or adapted from the EPA Climate Change Glossary and the Climate Action Reserve Dictionary.

 

Additional Resources

Energy Information Administration’s Energy Glossary

EPA Overview of Greenhouse Gas Emissions

FEMA Extreme Heat Glossary

IPCC Fourth Assessment Report Working Group 1: The Physical Science Basis

IPCC Fourth Assessment Report Working Group II: Impacts, Adaptation, and Vulnerability

National Weather Service Glossary

NASA’s Earth Observatory Library

UNFCCC glossaries