Glossary

Offset Pricing Monthly Market Digest – January 2021

Offset Pricing Monthly Market Digest – January 2021

Offset Pricing Monthly Market Digest – January 2021


Offset Supply Information:

All CCOs issued to date: 215.27 million
Compliance credits awaiting issuance: 15.61 million

CA and General Market Commentary:

    • The CCO-0 quote above now reflects the August settlement date rather than the previously reported December 2021 settlement. We have made this shift because we expect increased interest in CCO-0s in Q1-Q3 as the compliance deadline for CP3 (2018-2020) on November 1st, 2021 nears.
    • We have increased our estimate for the 2022 California auction estimated floor price due to increased inflation expectations for the period November 2020 through October 2021.
    • The next auction will be held on February 17th, with results released on February 24th. This auction will offer 54.77 million allowances, down from the 57.56 million allowances that were offered on average in the 2020 auctions.  Pricing in the futures market currently predicts that the February auction will sell out, but will clear at or near the floor price of $17.71.


ClimeCo
is a respected project developer, advisor, and trader of environmental commodity market products. Specialized expertise in sustainability, 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 – January 2020

Offset Pricing Monthly Market Digest – January 2020

Offset Pricing Monthly Market Digest – January 2020

Offset Supply Information:

All CCOs issued to date: 170.43 million

Compliance credits awaiting issuance: 32.59 million

CA and General Market Commentary:

  • On January 30th, the California Air Resources Board (ARB) announced the results of their investigation into alleged regulatory violations at the Scenic View Dairy. As a result of the investigation, which was initiated on November 18, 2019, ARB is invalidating 18,867 CCOs generated by the project, CALS5040-C, Scenic View Dairy.  This marks the completion of the third invalidation investigation conducted by ARB in the program’s history, and the second time CCOs have been invalidated.
  • To date, less than 1% of all issued offsets have been invalidated. However, each invalidation event reminds participants of the potential risk and potentially impacts small emitters desire to purchase non-guaranteed CCOs.
  • ARB’s next quarterly allowance auction will be held on February 19th, with results announced February 26th.

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 – January 2020

Offset Pricing Monthly Market Digest – January 2019

Offset Pricing Monthly Market Digest – January 2019


Offset Supply Information:
All CCOs issued to date: 142.97 million
Compliance credits awaiting issuance: 21.74 million

CA and General Market Commentary:

  • ARB will hold its next allowances auction on February 20th. The new 2019 floor price of $15.62 will be in effect.
  • ClimeCo’s estimate of the 2020 CA auction floor price has decreased by $0.05 this month, as CPI-U numbers have come in slightly lower than expected for November and December.

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.