Glossary

Offset Pricing Monthly Market Digest – June 2021

Offset Pricing Monthly Market Digest – June 2021

Offset Pricing Monthly Market Digest – June 2021

Offset Supply Information:

All CCOs issued to date: 221.23 million

Compliance credits awaiting issuance: 16.13 million

CA and General Market Commentary:

  • Issuances of CCOs continued to be slow in June. The ROC backlog increased by nearly 2 million.  Relatively low issuances of new CCOs continue to constrain the offsets available to entities as they look to fulfill their obligations at the 3-year compliance deadline on November 1st.

  • Allowance (CCA) prices continued their strong move upward, increasing $2.31/CCA since the end of May. Offset (CCO) prices moved upward as well during June, but continue to underperform the increases seen in CCA prices.  CCO-0s are now priced at a 32% discount to allowances, which appears to be a 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.

Offset Pricing Monthly Market Digest – June 2021

Offset Pricing Monthly Market Digest – May 2021

Offset Pricing Monthly Market Digest – May 2021

 

Offset Supply Information:

All CCOs issued to date: 220.94 million

Compliance credits awaiting issuance: 14.13 million

CA and General Market Commentary:

  • On May 27th, ARB released the results of its quarterly allowance auction. Current vintage allowances cleared at $18.80, a substantial premium to the $17.71 auction reserve price.  The bid-to-cover ratio was 1.48, a strong result compared to auctions in 2020.
  • Issuances of CCOs continued to be slow in May. The ROC backlog increased by nearly 3 million.  Relatively low issuances of new CCOs continue to constrain the offsets available to entities as they look to fulfill their obligations at the 3-year compliance deadline on November 1st.

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 – June 2021

Offset Pricing Monthly Market Digest – April 2021

Offset Pricing Monthly Market Digest – April 2021





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 – June 2021

Offset Pricing Monthly Market Digest – March 2021

Offset Pricing Monthly Market Digest – March 2021

Offset Supply Information:

All CCOs issued to date: 219.75 million

Compliance credits awaiting issuance: 11.27 million

CA and General Market Commentary:

  • On April 1st, ARB announced a new invalidation investigation against the Dairyland Farm LLC digester project. The investigation involves possible regulatory violations at the project during the period 4/1/2018-3/31/2019 and involves up to 30,811 CCOs. This is the third investigation related to regulatory compliance at a dairy project over the past year.

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

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 – June 2021

Offset Pricing Monthly Market Digest – February 2021

Offset Pricing Monthly Market Digest – February 2021

Offset Supply Information:

All CCOs issued to date: 218.44 million

Compliance credits awaiting issuance: 15.61 million

CA and General Market Commentary:

On February 24th, the CA ARB released the results of the first 2021 quarterly auction, held February 17th. The results were perhaps stronger than expected; current vintages sold out, with a bid-to-cover ratio of 1.24 and a clearing price of $17.80, which is above the floor price of $17.71.

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.