Weekly Carbon Outlook – June 19, 2017

June 19, 2017 by Ronjoy Bezbarua

(See below to download report)

Trading Report

  • Industry leaders signal support towards cap-and-trade extension to 2030
  • 5,711,000 tons traded with 64.3% concentrated on V2017 and 35.37%on V2018
  • Current front contract, Jun 17, closed week at USD 14.15, USD 0.09 up from previous week’s close
  • A net change of 2,706,000 observed on open interest creation
  • OCA prices close at CAD 18.96 (USD14.33)

Price Expectations

  • The CCA market witnessed an increase in trading activities in V2018, as participants started preparing for next year’s compliance obligation
  • A fully subscribed second auction in Ontario has brought its cumulative surplus to 0.6 million of allowances.
  • Expected V17 ranges: $14.12- $14.20 (Front); $14.28- $14.36 (2017 Benchmark)

CCO Tracker

  • 5 million CCOs issued in year’s second largest batch
  • Passamaqouddy Tribe IFM (CAR1175) handed a further 2.6 million offsets
  • CCOs available for compliance rises to 37.5 million
  • Prices remain stable across CCO instruments

Policy Tracker

  • SB 100 – Introduced by Senate President Pro Tem Kevin de León, it requires California to generate all its electricity from renewable.
  • SB 775 – It would now no longer allow banking of allowances and use of offsets in the cap-and-trade program beyond 2020. It also prevents free allocation of allowances and thus incentivise industry to invest in cleaner technology.

Key Dates

  • June 22 – Public Meeting to Hear the 2017 Progress Report on the Low Carbon Fuel Standard

Download this report (pdf)

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