Making a difference today for a better world tomorrow.

Glossary

Offset Pricing Monthly Market Digest – April 2020

Offset Pricing Monthly Market Digest – April 2020

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – April 2020

Offset Supply Information:
All CCOs issued to date: 174.45 million
Compliance credits awaiting issuance: 32.84 million

CA and General Market Commentary:

  • ARB issued only 1.16 million CCOs during the month of March. The ROC backlog (Compliance credits awaiting issuance) climbed by 3.46 million, and is now near the upper end of its historic range.  Smaller monthly issuances and a growing backlog may be due to COVID-19 disruptions at ARB.
  • CCA prices recovered slowly in April, but remain well below the $16.68 auction floor price. The next scheduled auction is in May.

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 – April 2020

Offset Pricing Monthly Market Digest – March 2020

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – March 2020

Offset Supply Information:

All CCOs issued to date: 173.29 million
Compliance credits awaiting issuance: 29.38 million

CA and General Market Commentary:

  • ARB CCA and CCO prices fell precipitously in March as Californians stayed at home and emissions are expected to fall dramatically as a result, at least in the near term. Prices are now approximately $1.40 below the auction floor price for 2020.
  • Volatility has been extremely high, and the Intercontinental Exchange (ICE) has raised margin requirements for traders several times. Increases in capital required to trade in the CCA market has likely exacerbated the decline below the floor price.
  • It is important to remember that if allowances go unsold at the next auction in May, which seems likely at this point, then that supply of approximately 66 million allowances being auctioned will be removed from the market for a substantial period of time. The supply of allowances in the market is to some extent self-correcting, so we anticipate futures prices returning to a point at least slightly above the floor within the next few months. 

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.

From the Desk of President & CEO – Bill Flederbach

From the Desk of President & CEO – Bill Flederbach

Making a difference today for a better world tomorrow.

From the Desk of President & CEO – Bill Flederbach

To Our Clients & The Market –

During the COVID-19 pandemic, the ClimeCo team continues to strive to make a difference today for a better world tomorrow.  To that end, I wanted to share with you, our clients and partners, the steps that we have taken to date and the commitments that we are making going forward to ensure that we are here and available to support you and your businesses through these difficult days:

  • We have been planning for the prospect of a significant business interruption due to COVID-19 for well over a month. In early February, we started to encourage our employees to begin thinking about what they might need to sustain themselves and their families in the event of forced isolation.  This plan positioned us well for success in a work-at-home environment.
  • We instituted a work-from-home request for all employees over two weeks ago, which was prior to the local and state ordinances that have been implemented since. Because a significant portion of our North American team routinely works remotely, ClimeCo already had the management and communication systems in place to make this an easy transition.
  • ClimeCo continues to uphold our values by placing people over profit. We are fortunate to enter this crisis with a strong balance sheet and we remain committed to the welfare of our employees.  To that end, I am making a pledge to retain every member of our staff for a minimum of 90 days.  Throughout its history, ClimeCo has never laid off an employee and we do not intend to do so now!  This means that the team members that you have been working with will be here for you to continue working with.
  • As of this writing, every member of the ClimeCo team is healthy, available and dedicated to assist you by:
    • Providing our regulated clients with market intelligence while identifying unique market opportunities, and
    • Working with our project partners and the credit registries to ensure a smooth supply chain of carbon offsets for both our voluntary and compliance buyers.
    • Continuing our philanthropic efforts by seeking ways that we can help those businesses and individuals who are less fortunate during this time of need; please reach out to us if we can help!
    • From all of us here at ClimeCo, we hope that you and your loved ones are staying safe. We are dedicated to the health and safety of our team, our clients and our partners.  Together, we expect to emerge as a stronger, more resilient and more sustainable industry.  In the meantime, please let us know how we can best assist you.

Sincerely,

William “Bill” Flederbach

Always working together, even when apart. #StayHome #TeamClimeCo #WorkFromHome

 

 

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 – April 2020

Offset Pricing Monthly Market Digest – February 2020

Making a difference today for a better world tomorrow.

Offset Pricing Monthly Market Digest – February 2020

Offset Supply Information:

All CCOs issued to date: 171.06 million

Compliance credits awaiting issuance: 33.81 million

CA and General Market Commentary:

  • ARB’s quarterly allowance auction was held on February 19th, with results announced February 26th. Current vintage allowances cleared at $17.87, with a strong bid-to-cover ratio of 1.52.

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 – April 2020

Offset Pricing Monthly Market Digest – January 2020

Making a difference today for a better world tomorrow.

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.