California-Québec Carbon Market Generates almost USD 1.6 bn Revenue

On February 18, the California-Québec cap-and-trade system successfully held their its second and largest carbon auction to date. All allowances were sold and in addition to the 2015 allowances, 2018 allowances also sold out, an indication of market confidence in the ongoing stability of the system. With the inclusion of transport fuels, California and Québec doubled the size of their linked carbon market at the beginning of the year, increasing the number of allowances auctioned to meet the expected growth in demand.

The program's auctions have generated almost  USD 1.6 billion in revenue, with funds earmarked for clean energy, emissions reduction projects, consumer electricity bill relief and administrative costs for the system. 2015 allowances reached a clearing price of USD 12.11; 11 cents above the auction floor price (minimum set price).