Cap-and-trade credits sell out in California
In California's first cap-and-trade auction, the price to emit greenhouse gases came in near the minimums established by the California Air Resources Board. The vast majority of the credits, 97 percent, were purchased by compliance entities.
In California’s first cap-and-trade auction, the price to emit greenhouse gases came in near the minimums established by the California Air Resources Board.
State regulators released the results of their first-ever carbon auction at noon Monday.
All 23.1 million 2013-vintage allowances sold at auction for $10.09 per ton of greenhouse gas emissions, just above the $10 minimum. On a call with reporters, ARB Chairwoman Mary Nichols said she was pleased the credits sold out, and at a good price.
“That’s a sign that we have a vibrant and successful market here,” she said. “Our goal here is to reduce carbon at a good price in a way that is flexible for the companies that are covered.”
In a separate auction for 2015 credits, 5.6 million of the 39.4 million credits made available were sold. The price was the minimum $10 per ton.
Nichols described the auction as a success, adding that concerns about high prices were unfounded.
“There was a very competitive market with a lot of participation and we would hope to see that continue in future auctions,” she said.
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