Californian holding curbs may raise allowance prices

摘要

The holding limits in California’s cap-and-trade programme may increase the cost of compliance for major emitters by limiting their ability to bank allowances, according to a study published by the University of Virginia and Power and Energy Analytic Resources. The study — funded by Southern California Edison, Pacific Gas & Electric, Chevron and several large municipal utilities — found that holding limits lead to an increase in the cost of California Carbon Allowances because large compliance entities are less able to purchase allowances early in the programme to cover their expected emissions later. The holding limits would require any large emitter want-ing to bank allowances for later use to place them in a compliance account, effectively retiring them early.