Carbon Markets

California Holds Third Carbon Allowance Auction

California’s third carbon allowance auction raised approximately $280 million at an increased settlement price of $14.00 per allowance. On May 21, 2013, the California Air Resources Board (CARB) released results of its third quarterly auction, held on May 16, 2013.  The auction offered Current Auction (2013) vintage allowances and Advanced Auction (2016) vintage allowances.  All…...

Taxation Group Report Outlines Energy Tax Reform Proposals

Energy tax reform proposals released by the House Ways and Means Committee outline potential modifications to federal tax code for fossil fuel production, renewable energy tax credits, and energy efficiency provisions. On May 6, 2013, the House Ways and Means Committee released the Joint Committee on Taxation report detailing tax reform suggestions to 11 Tax…...

California ARB Receives Governor’s Consent to Share Carbon Market with Quebec

Based on findings that ARB met necessary state requirements, California Governor Brown gave the go-ahead to continue efforts to link with Quebec’s carbon market. On April 8, 2013, California Governor Edmund “Jerry” Brown sent a letter to California Air Resources Board (ARB), confirming that the agency had met the minimum requirements to link its emissions…...

California’s Second Carbon Allowance Auction Signals Increasing Market Certainty

Results of California’s second carbon allowance auction signal marked success for the landmark cap-and-trade program, owing to strong market participation and a higher than expected settlement price. On February 19, 2013, California Air Resources Board (CARB) held its second auction for 2013 vintage allowances (Current Auction) and 2016 vintage allowances (Advanced Auction).  The results of…...

NY Governor Cuomo Proposes Tougher RGGI Carbon Cap

New York Governor Andrew M. Cuomo, in his State of the State address, proposed a tougher carbon cap for states covered under the Regional Greenhouse Gas Initiative (RGGI) cap-and-trade program.  The proposal underscores RGGI’s opportunity for achieving even greater emissions reductions in future years, as its current carbon cap remains significantly higher than actual emissions produced in…...

California Ratepayers to Receive Cap-and-Trade Dividend

California regulators will direct the state’s largest utilities to return 85% of cap-and-trade proceeds to ratepayers.  The move, which comes about a month after the successful completion of California’s first carbon allowance auction, aims at offsetting higher electricity costs resulting from the cap-and-trade program, by providing a “climate dividend” on utility bills. On December 20, 1012,…...