CA cap-and-trade off to a good start
Results from the California Air Resources Board (CARB) report that California's first cap-and-trade auction was transparent and fair, with oversight mechanisms in place to ensure the integrity of the auction.
Observers say the auction set into motion a robust carbon market that will aid California in achieving its climate change pollution goals in a cost-effective manner. By establishing a price on carbon, the new market gives regulated industries a market incentive to find innovative solutions to reduce their pollution.
Both vintage years 2013 and 2015 carbon allowances were available at a floor price of $10.00 per allowance. Of the 23,126,110 vintage 2013 carbon allowances 100 percent were sold at a settlement price of $10.09 each; 5,576,000 of the 39,450,000 vintage 2015 carbon allowances were sold at $10.00 each.
"This inaugural auction was a successful first step in setting a fair price on carbon," said Nathaniel Keohane, vice president (and former chief economist) for the Environmental Defense Fund. "The demand for 2013 allowances was greater than the supply, showing that businesses are ready to be active participants in cleaning up California's air."
The cap and trade will attract more investments in clean energy, keep California competitive, and reduce our dependence on foreign oil, according to EDF.
The next allowance auction is scheduled for February 2013.
CA fossil fuel industries will pay for emissions