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Offset Pricing Monthly Market Digest – January 2025

by Derek Six | February 7, 2025

Updates for the period ending January 31, 2025

.CCO 8s-Non-DEBsBid 13.30Ask 13.40
.CCO 8s-DEBsBid 27.30Ask 27.40

CCO 8s are ARB-issued offsets available for spot delivery and subject to 8 years during which they may be invalidated.

.CCO 3s- Non-DEBsBid 13.40Bid 13.50
.CCO 3s- DEBsBid 27.40Bid 27.50

CCO 3s are ARB-issued offsets available for spot delivery and subject to 3 years during which they may be invalidated. The reduction to 3 years is achieved by having a different verifier successfully verify the project the following year.

.CA Compliance AllowancesBid 29.48Ask 29.52

Allowances are the permits entities purchase to emit in CA. Entities can substitute offsets for up to 4% of their total emissions. Prices shown are for the front-month futures contract.

.CA Floor Price 202525.87

The minimum price at which entities can purchase allowances in 2025.

.Estimated CA floor price 202627.84

Allowances are the permits entities purchase to emit in CA. Entities can substitute offsets for up to 4% of their total (the minimum price at which entities can purchase allowances in 2026 increases by 5% annually plus CPI-U).

(Bid/Ask Prices are taken from multiple broker quotes for the period ended January 31, 2025. The 2025 CA Floor Price is the regulatory minimum auction price for allowances. The 2026 estimate is based on regulatory rules and ClimeCo’s assumption of inflation in 2025 as measured by the CPI-U index. Green numbers indicate positive changes during the month, red numbers indicate negative changes during the month, and black numbers are unchanged.)

Offset Supply Information:

All CCOs issued to date: 268.41 million

CA and General Market Commentary:

  • Prices for CCAs and CCOs declined across the board in January. The market appears frustrated by the long delay to the release of ARB’s anticipated program changes. We would expect markets to regain momentum when the new proposals are released, assuming that the proposals reflect the expectations ARB had previously discussed.
  • Issuances of CCOs in January totaled 665,501. We are watching the issuance trends as compared to the same period in previous years to gauge the future available supply of DEBs and Non-DEBs offsets. Since 2021, issuances have been on a downward trajectory:
.YearTotal Issuances YTD
.20211,132,579
.2022777,675
.2023503,182
.2024386,662
2025655,501

ClimeCo is an award-winning leader in decarbonization, empowering global organizations with customized sustainability pathways. Our team of respected scientists and industry experts collaborates with companies, governments, and capital markets to develop tailored ESG and decarbonization solutions. Recognized for creating high-quality, impactful projects, ClimeCo is committed to helping clients achieve their goals, maximize environmental assets, and enhance their brand. Partner with ClimeCo to drive meaningful environmental change and take your climate initiatives to new heights.

Contact us at +1 484.415.0501info@climeco.com, or through our website climeco.com.

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