Glossary

Offset Pricing Monthly Market Digest – September 2022

Offset Pricing Monthly Market Digest – September 2022

Offset Pricing Monthly Market Digest – September 2022

by Derek Six | October 7, 2022

 


Offset Supply Information:

All CCOs issued to date: 240.90 million

CA and General Market Commentary:

Issuances of CCOs in September totaled 2,089,335. This brings the issuances of CCOs in 2022 YTD to 9.4 million. This 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 solutions. 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 solutions 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 – September 2021

Offset Pricing Monthly Market Digest – September 2021

Offset Pricing Monthly Market Digest – September 2021

by Derek Six | October 6, 2021


Offset Supply Information:

All CCOs issued to date: 225.32 million

Compliance credits awaiting issuance: 23.40 million

CA and General Market Commentary:

  • CCA prices climbed in September. Events positively impacting CCA prices included California Governor Gavin Newsom’s successful defense against his re-call election and the increase in trading from financial players in the California market. 
  • While widely expected, Governor Newsom’s victory was seen as protecting against a possible threat to California’s program.
  • This year several new ETFs have opened which seek to reflect the performance of the CCA market and this influx of speculative capital has increased demand for the instruments.
  • Offset (CCO) prices moved upward during September as compliance entities purchased offsets for use at the November 1st triennial compliance deadline, but the spread between CCO-0s and CCAs increased further to a 38% discount to allowances, another new record high discount %.

ClimeCo is a respected 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 – September 2021

Offset Pricing Monthly Market Digest – September 2020

Offset Pricing Monthly Market Digest – September 2020

CA and General Market Commentary:

Offset Supply Information:

All CCOs issued to date: 201.97 million
Compliance credits awaiting issuance: 23.29 million

CA and General Market Commentary:

The trend of allowances moving higher and CCO prices moving lower continued in September. The spread between Allowances and CCOs continues to widen to record historical levels.  Because 2020 is not a triennial compliance true-up year, we believe the lack of interest in CCOs is because compliance entities do not need to purchase CCOs for compliance until 2021, and many entities may be waiting until closer to the true-up deadline in order to observe the uncertain economy and better understand their emissions for 2020.


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 Pricing Monthly Market Digest – September 2019

Offset Pricing Monthly Market Digest – September 2019

Offset Pricing Monthly Market Digest – September 2019

Offset Supply Information:

All CCOs issued to date: 163.79 million

Compliance credits awaiting issuance: 25.48 million 

CA and General Market Commentary:

  • September was a relatively quiet month. Light quantities of CCOs were issued by ARB, and the ROC backlog declined slightly.  CA allowance prices trended down slightly, but CCO prices were unchanged.

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 – September 2019

Offset Pricing Monthly Market Digest – September 2018

Offset Pricing Monthly Market Digest – September 2018

Offset Supply Information:

All CCOs issued to date: 118.87 million
Compliance credits awaiting issuance: 33.51 million

CA and General Market Commentary:

  • Prices for offsets that can be delivered before the November 1st compliance deadline continued to be elevated in September. This year is of particular importance, as entities are going to be completing their final submissions for the full 3-year 2015-2017 triennial period.
  • The backlog of compliance credits awaiting issuance held relatively steady from August to September. Most credits in the backlog are from forestry projects.  Many of these have been in the queue for an extended period of time.  For example, one particularly large project, the Finite Carbon Ahtna Native Alaskan Improved Forestry Management project was issued 14.86 million ROCs by the American Carbon Registry on 12/10/2017, and these ROCs are still awaiting ARB approval nearly 11 months later.

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.

Sources

The definitions in this glossary have been reprinted or adapted from the EPA Climate Change Glossary and the Climate Action Reserve Dictionary.

 

Additional Resources

Energy Information Administration’s Energy Glossary

EPA Overview of Greenhouse Gas Emissions

FEMA Extreme Heat Glossary

IPCC Fourth Assessment Report Working Group 1: The Physical Science Basis

IPCC Fourth Assessment Report Working Group II: Impacts, Adaptation, and Vulnerability

National Weather Service Glossary

NASA’s Earth Observatory Library

UNFCCC glossaries