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Weekly Carbon Outlook – Feb 27, 2017

February 27, 2017 by Billy Hamshaw

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Trading Report

  • Front Prices close at auction reserve price of $13.57, as Front switched to March 2017 delivery
  • Open interest creation improved, with a net week-on-week change of 3,536,000 contracts
  • OCA’s Dec 17 benchmark trading at CA$ 18.32 (US$13.98), a premium of $0.24 over CCA’s

Price Expectations

  • Trading activity depleted in February with monthly volume of 13,673,000 contracts compared to 30,814,000 contracts in January 2017
  • A subscription ratio below 20% might result into a brief shortage in 2017
  • Expected V17 ranges: $13.53 – $13.57 (Front); $13.75 – $13.78(2017 Benchmark)

CCO Tracker

  • Livestock credits dominate as 149,000 ARBOCs issued to 7 agricultural projects
  • Cottonwood Dairy Livestock Gas Capture Project (CAR1151) the week’s highest scorer, claiming 40,236 credits
  • CCO-3 count passes 13 million with half a million new conversions
  • 245,929 credits registered with ACR and CAR
  • New verification assignments for Ruby Canyon Engineering and S&A Carbon
  • Offset prices remain relatively unchanged with CCO-8s at around $10.35; CCO-3s and Golden CCOs at $10.83 and $11.80

Policy Tracker

  • SB 584 recently introduced to amend Section 399.11 of the Public Utilities Code, relating to energy

Key Dates

  • Mar 1– Joint Auction Results
  • Mar 7, 9, 14 – Public Workshop to seek input on SB-375 update
  • Mar 17 – Public Working Meeting focused primarily on potentially on including Alternative Jet Fuel in the Low Carbon Fuel Standard

Download the report (pdf)

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