Glossary

Offset Pricing Monthly Market Digest – May 2022

Offset Pricing Monthly Market Digest – May 2022

Offset Pricing Monthly Market Digest – May 2022

by Derek Six | June 7, 2022


Offset Supply Information:

All CCOs issued to date: 237.65 million

CA and General Market Commentary:

  • ARB released the results of its May auction on May 26th. Current vintage allowances cleared at $30.85, $11.15 above the reserve price of $19.70. The bid-to-cover ratio was 1.62.
  • The strong results of the auction propelled futures prices higher over the last few trading days in May.
  • Issuances of CCOs in 2022 through the end of May totaled 6.1 million. This is the lowest total recorded in this period, and continues a trend of decreasing issuances of CCOs:

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 – May 2022

Offset Pricing Monthly Market Digest – April 2022

Offset Pricing Monthly Market Digest – April 2022

by Derek Six | May 6, 2022


Offset Supply Information:

All CCOs issued to date: 237.48 million

CA and General Market Commentary:

  • ARB holds its next quarterly auction on May 18, 2022, with results announced May 26, 2022.
  • Several new bills dealing with Cap-and-Trade issues have been introduced in the CA legislature. The most noteworthy for offset market participants is SB 1391, which includes a number of new linking requirements including the requirement that, “If a market-based compliance mechanism proposed for linking has issued or is authorized to issue an offset credit that can be used for compliance purposes, then the market-based compliance mechanism includes a provision that automatically reduces the number of emissions allowances it makes available for compliance purposes by a number that is equivalent to the climate benefits claimed by either of the following:
    • The issuance of all offset credits, as observed historically and on an ongoing basis.
    • The retirement of all offset credits used for compliance purposes, as observed historically and on an ongoing basis.”
  • This proposed rule appears to attempt to mirror a Washington state rule.

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 – March 2022

Offset Pricing Monthly Market Digest – March 2022

Offset Pricing Monthly Market Digest – March 2022

by Derek Six | April 7, 2022


Offset Supply Information:

All CCOs issued to date: 235.92 million

CA and General Market Commentary:

  • ARB CCO issuances in March accelerated, with 3 million new CCOs issued, but total year-to-date issuances remain well below historic averages. 2.7 million of the 3 million new issuances came from two Alaska-based Improved Forest Management projects.

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 – March 2022

Offset Pricing Monthly Market Digest – February 2022

Offset Pricing Monthly Market Digest – February 2022

by Derek Six | March 7, 2022


Offset Supply Information:

All CCOs issued to date: 232.81 million

CA and General Market Commentary:

  • Only 481k CCOs were issued by ARB during February. Adding in January issuances, ARB has issued 1.26M CCOs this year, compared to 4.3M for the same two-month period last year, a change of -71%.
  • CCA prices closed up at $29.30 on February 24th after the CA ARB reported the results of the 1st quarterly auction of 2022. Current vintages sold out with a bid-to-cover ratio of 1.82 and a clearing price of $29.15, well above the $27.65 the spot CCAs had been trading at several days before the results were announced.
  • For the first few days of March, the correlation between the CCA market and the US stock market has remained high, with CCA prices falling to $26.15 on Friday, March 4th as markets reflected on geopolitical tensions and inflation.

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 – March 2022

Offset Pricing Monthly Market Digest – January 2022

Offset Pricing Monthly Market Digest – January 2022

by Derek Six | February 7, 2022

Monthly Marketing Digest - January 2022
Offset Supply Information:

All CCOs issued to date: 232.33 million

CA and General Market Commentary:

  • CCA prices declined approximately 13% in January. There is an auction coming up in February, but it is not immediately apparent that this substantial price decline was based on any market fundamentals. In fact, February’s auction will include only 58.5M Current Vintage CCAs, the lowest number in a year. 
  • Prices have fallen below the November, 2021 clearing price of $28.26. Some analysts have noted a correlation between the CCA market and the US stock market, and that general economic fears are driving declines in CCA prices.

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.