Inthe Western Climate Initiative's final quarterly auction for the year, to beheld Nov. 15, California and Quebec will offer for sale more than 87 millioncurrent vintage carbon allowances and more than 10.0 million vintage 2019allowances, according to an updated auction notice released by the California Air Resources Board.The CARB said 827,375 of the current vintage allowances are for vintage year2015, with more than 86.2 million of the allowances for vintage year 2016.
Inthe WCI's prior auction held in mid-August, more than 30.0 million, orabout 35% of the almost 86.3 million vintage 2016 allowances, sold at the floorprice of $12.73/tonne. Additionally, 769,000, or about 8.0% of the more than10.1 million vintage 2019 allowances on offer, sold at $12.73/tonne.This was the third consecutive WCI auction that saw the vintageallowance offering undersubscribed.
Marketsources attributed the low demand in the August WCI carbon allowance auction toseveral factors, including an ongoing oversupply of allowances, theavailability of secondary market allowances at lower levels than the floorprice, and uncertainty regarding ongoing litigation.
TheCalifornia and Quebec cap-and-trade programs were formally linked under the WCIat the start of 2014, with the first joint sale held in November 2014. Entitiesregistered under Quebec's system may participate in joint auctions in eitherU.S. dollars or Canadian dollars.