24 Jul 2024 | 08:05 UTC — Insight Blog
California carbon prices drop below Washington as both programs struggle
Featuring Staff and Eric Yep
Energy transition highlights: Our editors and analysts bring together everything you need to know about the industry this week, from renewables to storage to carbon prices.
California carbon allowance prices slightly rebounded after dropping every day for a week straight, trading below the beleaguered Washington carbon market facing the threat of repeal in November, according to the latest price data.
Emission allowance prices in California are under pressure after the California Air Resources Board repositioned its plans to implement new changes to its cap-and-trade carbon emissions program, CARB announced July 10.
On July 18, eight days after the workshop that set off a gradual decline in allowance prices, Platts, part of S&P Global Commodity Insights, assessed CCA next-December strip at $34.72/mt. This price assessment represents an 8% drop since before the workshop and a 6% drop from the Q2 joint auction.
Now that CARB’s rulemaking timeline was extended by a year, a tightening of the carbon market’s supply will not occur as soon as previously thought, Matt Williams, emissions and clean energy analyst at Commodity Insights, said. The California-Quebec joint carbon market is experiencing an "oversupply" of allowances, he previously said.
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