The latest California-Quebec auction was fully subscribed, based on results released today. This is the second quarter in a row where all allowances sold, which is good news for the state’s Greenhouse Gas Reduction Fund. There is still opportunity, however, for more ambition in the program moving forward.
Today’s results, by the numbers
- All 54,773,607 current vintage allowances were offered for sale. This is the second consecutive auction where all current allowances sold. It should also be noted that there were just under 2 million more allowances offered in November compared to February, mainly due to the annual decline of the emissions cap.
- Current vintage allowances cleared at $17.80, 9 cents above the floor price of $17.71. This is 87 cents above the November 2020 settlement price of $16.93.
- All of the 8,306,250 future vintage allowances offered for sale sold, just as 100% sold in the previous auction. These allowances may not be used for compliance until 2024.
- Future vintage allowances sold at $18.01, 30 cents above the floor price of $17.71, and 66 cents above the $17.35 settlement price from November 2020.
- California raised almost $650 million for the Greenhouse Gas Reduction Fund, some of which the Legislature may allocate during the ongoing budget process for priorities such as the Community Air Protection Program and the Safe and Affordable Drinking Water Program.
- Quebec raised just over $150 million (just over $190 million CAD) to invest in their own climate priorities.