Lower California-Quebec GHG Credit Prices Signal Cap & Trade Uncertainty

Lower prices for greenhouse gas allowances at the latest California-Quebec cap-and-trade program auction are signaling some uncertainty among market participants as the system faces key operational and policy adjustments, though experts expect prices will rebound when those changes are adopted in the coming months. “A number of factors could be at play with today’s results which saw a lower settlement price than California’s most recent auction,” writes Caroline Jones, senior analyst for U.S. Climate with the Environmental Defense Fund (EDF),...