Glossary

Offset Pricing Monthly Market Digest – April 2023

Offset Pricing Monthly Market Digest – April 2023

Offset Pricing Monthly Market Digest – April 2023

by Derek Six | May 8, 2023

 

Monthly Market Digest April 2023

Offset Supply Information:

All CCOs issued to date: 245.42 million

CA and General Market Commentary:

  • Issuances of CCOs in April totaled 401,363. The table below continues to track a trend of significantly lower CCO issuances versus prior years: 

ClimeCo's MMD April 2023 Chart

 

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. 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 solutions 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 – April 2022

Offset Pricing Monthly Market Digest – April 2022

Offset Pricing Monthly Market Digest – April 2022

by Derek Six | May 6, 2022


Offset Supply Information:

All CCOs issued to date: 237.48 million

CA and General Market Commentary:

  • ARB holds its next quarterly auction on May 18, 2022, with results announced May 26, 2022.
  • Several new bills dealing with Cap-and-Trade issues have been introduced in the CA legislature. The most noteworthy for offset market participants is SB 1391, which includes a number of new linking requirements including the requirement that, “If a market-based compliance mechanism proposed for linking has issued or is authorized to issue an offset credit that can be used for compliance purposes, then the market-based compliance mechanism includes a provision that automatically reduces the number of emissions allowances it makes available for compliance purposes by a number that is equivalent to the climate benefits claimed by either of the following:
    • The issuance of all offset credits, as observed historically and on an ongoing basis.
    • The retirement of all offset credits used for compliance purposes, as observed historically and on an ongoing basis.”
  • This proposed rule appears to attempt to mirror a Washington state rule.

ClimeCo is a respected global 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 – April 2021

Offset Pricing Monthly Market Digest – April 2021

Offset Pricing Monthly Market Digest – April 2021



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Offset Supply Information:
All CCOs issued to date: 220.08 million
Compliance credits awaiting issuance: 11.42 million

CA and General Market Commentary:

ARB will hold its next quarterly auction on May 19th, 2021, with results released May 27th.

In April there were at least four important news items that likely moved the market higher:

  1. The US Department of Justice dropped a lawsuit filed by the previous administration which challenged California’s right to link their program to Quebec’s.  Although the lawsuit had failed in court, an appeal had been pending until this action.
  2. Washington state passed a Cap and Invest bill that appears to be designed to allow possible linkage to the WCI program.
  3. The Biden Administration announced more ambitious targets for US emission reductions, placing its goal at 50-52% below 2005 emissions levels by 2030.
  4. Inflation accelerated in March, with CPI-U increasing 0.6% for the month and 2.6% for the trailing twelve-month period.  Since the CA auction floor price for allowances increases each year by 5% plus CPI-U, this substantial change to inflation implies a higher expected 2022 floor price for allowances.

    Issuances of CCOs by ARB in April were relatively muted, and the ROC backlog awaiting issuance was nearly unchanged.  This impacts available supply of CCOs as we head to the 3-year compliance deadline on November 1st, 2021.

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.

Offset Pricing Monthly Market Digest – April 2020

Offset Pricing Monthly Market Digest – April 2020

Offset Pricing Monthly Market Digest – April 2020

Offset Supply Information:
All CCOs issued to date: 174.45 million
Compliance credits awaiting issuance: 32.84 million

CA and General Market Commentary:

  • ARB issued only 1.16 million CCOs during the month of March. The ROC backlog (Compliance credits awaiting issuance) climbed by 3.46 million, and is now near the upper end of its historic range.  Smaller monthly issuances and a growing backlog may be due to COVID-19 disruptions at ARB.
  • CCA prices recovered slowly in April, but remain well below the $16.68 auction floor price. The next scheduled auction is in May.

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.

Offset Pricing Monthly Market Digest – April 2020

Offset Pricing Monthly Market Digest – April 2019

Offset Pricing Monthly Market Digest – April 2019

Offset Supply Information:

All CCOs issued to date: 152.72 million
Compliance credits awaiting issuance: 21.69 million

CA and General Market Commentary:

A light month of ARB CCO issuances saw the ROC backlog increase to 21.69 million, up almost 4 million from March.

On April 8th, the Intercontinental Exchange (ICE; theice.com) listed and traded the first California Carbon Offset futures contract. ClimeCo was pleased to be involved in this historic trade.  The contract is for the physical delivery of CCO-0s- offsets whose invalidation period has expired.  The first trade was for delivery of CCO0s in December 2021 and was priced at $16.66.  Following up on this previously reported event, we are now listing the monthly settlement price for the DEC2021 contract for CCO-0s in our pricing table above.

ARB’s second quarterly auction of 2019 will be held on May 14th, with results available May 22nd. We will look to see whether the substantial move upward in allowance prices during the last few weeks is sustained by the auction results, or whether the auction clears close to the 2020 floor price of ($16.70 estimated) as typically has occurred in the past. 

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.

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