Glossary

Offset Pricing Monthly Market Digest – June 2022

Offset Pricing Monthly Market Digest – June 2022

Offset Pricing Monthly Market Digest – June 2022

by Derek Six | July 6, 2022

 
Offset Supply Information:

All CCOs issued to date: 237.83 million

CA and General Market Commentary:

  • Issuances of CCOs in June totaled 183,143. This brings the issuances of CCOs in 2022 YTD to 6.3 million. This is the lowest total recorded in this period, and continues a trend of decreasing issuances of CCOs:

 

  • At least three factors may be at work influencing this severe downturn in CCO issuances: 
    1. Many of the largest potential forestry and ODS projects may have already been developed, and we may be observing a permanent decline in opportunities under the current protocols.
    2. The pandemic may have delayed the development of new projects and/or the process of verification site visits for existing projects.
    3. Many projects have elected to switch their registration. Dairy methane projects have largely transferred over to the LCFS program. Other projects may have elected to register under voluntary protocols given the high voluntary market prices seen in late 2021.

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 – June 2022

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 2020

Offset Pricing Monthly Market Digest – June 2020

Offset Pricing Monthly Market Digest – June 2020



Offset Supply Information:

All CCOs issued to date: 188.11 million
Compliance credits awaiting issuance: 22.24 million

CA and General Market Commentary:

  • ARB issued 2.05 million CCOs in June, a light month, and the ROC backlog decreased by over 1 million credits as new ROC issuances were low in June at 1.08 million.
  • ARB’s next auction will be in August.
  • ARB has announced that starting at the end of July, ARB will begin marking CCOs as “DEBs” or non-DEBs in their tracking software and reports. This will allow buyers to know whether the credits they are buying have been determined to meet the requirements.  Offset projects that are located in California will automatically be marked as “DEBs”, while other projects can petition to have a determination made if the developer believes they should qualify.
  • Due to ARB beginning to mark credits as “DEBs”, we would expect that the market will begin to differentiate between the two categories, and we will begin adding prices for both categories to this report if/when the market begins to price them differently.

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 – June 2020

Offset Pricing Monthly Market Digest – June 2019

Offset Pricing Monthly Market Digest – June 2019

Offset Supply Information:

All CCOs issued to date: 155.41 million
Compliance credits awaiting issuance: 23.10 million

CA and General Market Commentary:

  • Oregon will not pass a Cap and Trade bill this year. Oregon’s House passed a Cap and Trade bill, and it was expected that the bill would pass out of the Senate in June given the substantial Democratic majority in the Senate.  The bill was viewed as a possible first step to linking to the CA/QC program.  However, after a heated partisan dispute that included the Republican Senators leaving the state to avoid a vote on the bill, the bill has been abandoned, at least for this legislative year.  Democratic Governor Kate Brown has vowed to use the Executive Branch to implement a Cap and Trade program, but it is unclear how far her administration can go with their actions, and likely that they would not result in a fully linkable program.

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.