California Carbon Rises to Eight-Week High After
Quebec Votes
Bloomberg
By Lynn Doan - Dec 13, 2012
California carbon futures rose to
the highest price in almost two months after Quebec approved changes to allow
links between their cap-and-trade systems.
Carbon markets in Quebec and
California will be connected next spring, and their governments will hold the
first joint auction of carbon allowances in August, Yves-François Blanchet, Quebec’s
minister of sustainable development, environment, wildlife and parks, said in a
statement on his agency’s website.
“Quebec’s action sets the stage to
link our two emissions-trading programs to provide a model that other states
and provinces can join,” Mary
Nichols, chairman of the California
Air Resources Board, said in a statement on her agency’s website.
The board voted in June to delay a
decision on aligning with Quebec’s carbon system after a bill was signed into
law requiring approval from the governor. The agency will now request the
governor’s review, Nichols said today. Should the programs come together, companies
could use carbon permits issued as part of Quebec’s cap-and-trade program to
comply with emission limits in California, which will start the world’s
second-largest carbon market on Jan. 1.
Futures based on California carbon
allowances for 2013 advanced 30 cents to $13.75 a metric ton, the highest since
Oct. 19, according to data compiled by CME Group Inc.
(CME)’s Green Exchange.
Under California’s program, the
state will cap carbon emissions from power generators, oil refineries and other
industrial plants and cut that limit gradually to reduce emissions to 1990
levels by 2020. Companies bound by the cap can sell allowances to other
emitters and investors. The state plans eventually to regulate 85 percent of
the greenhouse gasesreleased
in California.
To contact the reporter on this
story: Lynn Doan in San
Francisco at ldoan6@bloomberg.net
To contact the editor responsible
for this story: Dan Stets at dstets@bloomberg.net
Click here for the original article: http://www.bloomberg.com/news/2012-12-14/california-carbon-rises-to-eight-week-high-after-quebec-votes.html
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