SACRAMENTO, California — California’s carbon market showed only modest signs of strength in its latest quarterly auction, with prices clearing less than $1 above the state’s minimum price one day before regulators are set to vote on a major overhaul of the program.
What happened: The quarterly auction, which was the last before the California Air Resources Board votes on new rules for the market, saw prices finalize at $28.81 per ton of carbon for current-year permits. That was $0.87 above the state’s minimum price, showing signs of stronger market confidence after the previous auction settled at the floor.
The May auction also sold out all of its current-year permits, with companies buying all 49.6 million allowances available for compliance this year. Future-year permits, which cover emissions in 2029, cleared at $28.76, which is also less than $1 above the floor.
Overall, the sale is expected to generate roughly $770 million for the Greenhouse Gas Reduction Fund.
