Weekly Carbon Outlook – June 5, 2017
June 5, 2017 by Billy Hamshaw
(See below to download report)
- Market remains stable as Trump announces US withdrawal from the Paris Agreement
- Gov. Brown signals carbon linking intention ahead of China visit
- AB 378 rejected by Assembly but granted reconsiderations
- 5,992,000 tons traded with midweek activity breaking silence
- New front contract, Jun 17, cleared on Friday at USD 14.10, USD 0.05 above the previous week’s close
- A net change of 4,150,000 observed on open interest creation
- OCA’s Dec 17 benchmark rises to CAD 19.25 (US$14.26) ahead of second auction this week
- The CCA market witnessed a generous gain in light of the successful auction, the current front closed at USD 14.10
- Spread between V2017 and V2018 benchmark reduces as participants focus on current vintage
- Expected V17 ranges: $14.10- $14.18 (Front); $14.25- $14.233 (2017 Benchmark)
- Handful of CAR projects receive registry credits
- Willits Woods IFM (CAR1140) gains a further 217k ROCs
- Support from business groups and linking partners add to discussion on offset usages
- 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.
- June 02 – ARB Public Working Meeting for evaluation of the carbon intensity of renewable fractions, quantifying and reporting the renewable fuel volumes, and monitoring and verification under the Low Carbon Fuel Standard.
- June 06 – Ontario cap-and-trade auction 2 for greenhouse gas allowances.
Download this report (pdf)