Glossary

Offset Pricing Monthly Market Digest – September 2021

Offset Pricing Monthly Market Digest – September 2021

Offset Pricing Monthly Market Digest – September 2021

by Derek SixOctober 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 – September 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.

Offset Pricing Monthly Market Digest – September 2021

Offset Pricing Monthly Market Digest – July 2021

Offset Pricing Monthly Market Digest – July 2021

Offset Supply Information:

All CCOs issued to date: 223.38 million

Compliance credits awaiting issuance: 15.73 million

CA and General Market Commentary:

    • Allowance (CCA) prices continued their strong move upward. Offset (CCO) prices moved upward as well during July, and the spread between CCO-0s and CCAs declined slightly to a 31% discount to allowances, a 1% improvement of the spread in July, but still a record high discount %.
    • The next quarterly auction of allowances will occur on August 18, with results announced August 25.

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 – September 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 – September 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.