The California Air Resources Board released on Thursday results from the state's carbon allowances auction on Aug. 18, noting that more than 22.47 million vintage 2014 allowances were sold.
The report also showed the advance sale of 6.47 million vintage 2017 allowances.
As part of the state's cap-and-trade program, CARB holds quarterly allowance auctions each year, in February, May, August and November. During each auction, the state offers large carbon emission producers current vintage year allowances, as well as future vintage year allowances in the separate advance auction. Each allowance unit represents a metric ton of expected carbon emissions.
California's cap-and-trade regulation took effect with the beginning of 2012, while the enforceable compliance obligation began in 2013. The program is an element of California’s climate plan, setting a statewide limit on sources responsible for 85 percent of the state's greenhouse gas emissions. The price signal established by the program is intended to drive long-term investment in cleaner fuels and more efficient use of energy.
The auction administrator reported that the settlement price for 2014 allowances was $11.50 per allowance, while the 2017 allowances settled at a price of $11.34 each.