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Weekly Carbon Outlook – Mar 06, 2017

March 6, 2017 by chandan.kumar

(See page end to download report)

Trading Report

  • Front Prices close at $13.47, after the first joint auction of 2017 remained undersubscribed.
  • 1,786,000 new contracts were opened between the old and new front month.
  • OCA’s Dec 17 benchmark trading at CA$ 18.30 (US$13.64), a premium of $0.03 over CCA’s

Price Expectations

  • The Front-to-year-end implied funding rate at a low of 1.39% – the lowest since the beginning of 2017,
  • 18 % subscription ratio in the auction resulted into a quarterly shortage of 2.3 million of allowances.
  • Expected V17 ranges:$13.47 – $13.50 (Front); $13.63 – $13.67(2017 Benchmark)

CCO Tracker

  • 363,000 ROCs registered in past week
  • White Mountain Apache Tribe Forest Carbon Project (ACR211), the program’s highest scorer adds further credits with new reporting periods
  • 2 Livestock and 1 ODS projects account for remainder of new ROCs
  • A-Gas Americas 2017-3 (CAR1254)the seventh new project listed this year
  • Golden CCOs and CCO8s hold their price while CCO3s slip by $0.03

Policy Tracker

  •  AB 151 – It would now no longer  limit the applicability of the cap-and-trade regulation beyond 2020

Key Dates

  • 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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