Offset Supply Information:

All CCOs issued to date: 206.64 million

Compliance credits awaiting issuance: 18.32 million

CA and General Market Commentary:

• 2021 will be an interesting year in the market, as full true-up for the 2018-2020 triennial compliance period is due on November 1st. Entities will be required to surrender all of their required allowances and offsets for their total 2018-2020 emissions at that time.
  
  
• ClimeCo anticipates rising CCO prices in 2021 as entities seek to acquire and surrender their 8% offset limits for the 2018-2020 period. The spread between CCOs and CCAs has remained stubbornly and historically high during 2020, but we expect that demand will increase as entities seek to take advantage of the substantial cost savings represented by surrendering offsets instead of allowances up to their maximum allowable quantity.   

ClimeCo 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 Supply Information:

All CCOs issued to date: 166.58 million

Compliance credits awaiting issuance: 27.95 million

CA and General Market Commentary:

• On December 2nd, ARB announced that the 2020 Auction Reserve (floor) price will be $16.68. This was in line with expectations.  Our chart above has been updated to reflect this 2020 floor price, and we have begun estimating the 2021 floor price at $17.85.
• Allowances prices climbed during the last two weeks of the year. This increase seemed to coincide with the expiration of the December 2019 futures contract, as participants closed those contracts and entered into new futures positions with 2020 expirations.

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.