March 29, 2017
California Carbon Auction Results Reflect Lingering Market Volatility
Resolving Legal and Regulatory Uncertainty over Cap-and-Trade Future Will Boost Program Performance
Results of California’s February 2017 quarterly carbon auction continue to reflect overall market volatility over the past year, due to the ambiguity over the post-2020 cap-and-trade program and pending litigation over the program’s legality. A resolution of legal uncertainties and clarity over the future direction of the cap-and-trade program will increase market activity as participants perceive greater certainty.