On 16 November, regulators from the California Air Resources Board (ARB) and the Quebec Ministry of the Environment and the Fight Against Climate Change (MELCCFP) conducted a joint workshop to analyze the impact the program updates under consideration will have on allowance prices. ARB and MELCCFP regulators plan to implement deep cuts to their annual allowance budgets in order to strengthen their respective cap-and-trade programs, which will put increasing pressure on compliance entities to enact great abatement measures over the next several years. In the workshop, regulators presented a series of different price forecasting models to provide insight into how these reductions will impact allowance prices over the next two decades. In the models, prices are forecasted to reach nearly USD 120/t in 2030 and USD 180/t in 2040.
The fuel behind the spike Earlier this year, California adopted its 2022 Scoping Plan, which outlines a series of more ambitious decarbonization targets for the state – notably increasing its 2030 GHG reduction target by 8% to 48% below 1990 levels and ac…
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