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Weekly Carbon Outlook – Oct 10, 2017

October 10, 2017 by Ronjoy Bezbarua

(See below to download report)

Trading Report

  • CCA prices rose on Monday before dipping through the week and rose again on Friday, closing at $15.22 for the front (V17 Oct17) and $15.27 for the benchmark (V17 Dec17) with no overall change for the week
  • OCA Dec 17 benchmark prices rose to CAD 19.15 (USD 15.26)
  • OI saw a positive net change of 4,798,000 contracts
  • Weekly traded volumes rose to yearly record high at 22,885,000 tons

Price Expectations

  • Momentum on prices remains neutral; horizontal spreads may widen if rolls increase or if Fed rate hike is anticipated
  • Last week’s volume spike leaves question whether other traders follow suit

CCO Tracker

  • Over 477K ROCs were issued to six projects over the past week with the majority of the credits going to Encourage Capital’s Wyoming IFM forestry project and Tradewater’s Tradewater ODS 7
  • Two new Livestock projects were listed lasted week
  • The backlog of ROCs now stands at over 32 million
  • CCO prices rose throughout the week for the third consecutive week

Policy Tracker

  • SB 100- (Kevin de León) The California Renewables Portfolio Standard Program would double up California’s renewable energy ambition, mandating 100% RE procurement by 2045. It got amended in Assembly on 11th Sep 2017
  • SB 498- (Skinner) Beginning no later than 2024-2i025 fiscal year, at least 50% of the light-duty vehicles purchased for the state vehicle fleet each year must be zero emission vehicles. It was passed in Senate on Sep 14 and enrolled on Sep 19th

Key Dates

  • Oct 9- Public Workshop on Developing a Beneficiary Mitigation Plan for California’s Allocation of the Volkswagen Environmental Mitigation Trust
  • Oct 12 – Public workshop to discuss the results of staff’s technical assessment for multi-purpose lubricants

Download this report (pdf)

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