News Column

First Calif. Carbon Auction Nets $233 Million

Nov. 20, 2012
power plant

California's first cap and trade carbon auction raised 233 million dollars, dispelling doubts that the first such scheme in the country would be under-subscribed.

Figures released Tuesday by the California Air Resources Board (CARB) showed that all 23.1 million carbon permits on sale were sold, with most of them snapped up by companies needing to reduce their carbon emissions, rather than banks or other speculative entities.

Opponents had warned that the scheme would raise costs for companies doing business in the state and force them to move elsewhere. But that claim was dismissed by Mary Nichols, chairwoman of the Air Resources Board. "The first auction of carbon allowances was a success," she said during a conference call with journalists.

"This is an important milestone for our state. By putting a price on carbon, we know we are beginning the process of breaking our dependence on fossil fuels."

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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