California took in $1 billion for climate programs through the latest auction in its carbon market program — an amount analysts said was low and reflects continuing program uncertainty.
California’s carbon market generates money for emissions-reducing projects by forcing polluters that exceed emissions limits to pay the state with carbon credits they buy at auctions held four times a year.
Results released Wednesday of the latest auction show the state received $31.91 for each credit it auctioned. Credits sold for $41.76 in a February auction, $37.02 in May and $30.24 in August.
“That’s a pretty significant drop,” Katelyn Roedner Sutter, California state director of the Environmental Defense Fund, said of the price change since February. “There’s just less demand for allowances right now.”
