California and Quebec have expanded their program to trade carbon credits between them in what proponents have said is a success given that the allowances have sold out and at prices above the floor that had been set. It raised $850 million with the money going to fund clean energy technologies in the two jurisdictions.
“The Market Monitor found that the auction was cleared consistent with the auction clearing rules in the regulations and appropriate economic logic,” said a joint statement issued by both jurisdictions last week.
The allowances sold for about $15 a metric ton, which is about $1.50 greater than the $13.50 floor that had been set. A key reason for the higher — and healthier — prices is because California extended recently its cap-and-trade program from 2020 to 2030. That ensured a steadier demand for the credits and that businesses would take steps to cut their pollutants. Can that continue? Read more