Prices for California carbon emissions permits dropped nearly $7 per ton last week, according to state results announced Wednesday — the second consecutive decline after a nearly two-year upswing.
Last week’s quarterly sale of permits that high-emitting businesses need to cover their operations in California saw prices settle at $30.24 per ton of carbon, nearly $7 below the May 2024 price of $37.02.
The drop follows a close to $5 drop from last quarter’s auction, which was the first time carbon allowance prices had gone down in nearly two years.
Experts said the lower price could be a sign of market uncertainty as the California Air Resources Board recently delayed its rulemaking on amendments to the cap-and-trade program that would increase the program’s stringency and raise credit prices by reducing the pool of allowances.
