2 replies to this topic

[FamilyTreeClimber]

I posted a couple of months ago that California held it's first Cap and Trade auction.  It was efficient, the credits sold quickly, but met with mixed reviews because the price dropped so low.  The credits went for only 9 cents above the starting price of $10.  So, it didn't create the monetary benefit they had expected.

They have tweaked the program.  From what I hear the second auction was more to what they expected.  The credits went for $3 above the starting price, which made everyone involved a bit happier.

I wrote another post that explains in more detail how the program will work.  As I understand it, the incentive will come in the fact that each year less credits will be available at auction, so this should influence companies to modernize rather than face penalties.

Here is a good blog post about the second auction:
http://blogs.berkele...aturing-market/

Here is some more information about it and the benefits:
http://cleantechnica...ssions-auction/

I think if they can get into the second year without much trouble, it should be on a solid path.  I remember there were a couple of lawsuits against the program.  I have not heard if they have gone forward.  There really doesn't seem to be much complaining or backlash from the affected industries.

[E3 wise]

Thank you for the great information and links, this is really important to Americas energy future and we really appreciate the postings.

[FamilyTreeClimber]

My Pleasure.  Hopefully, Cap and Trade will be successful and it will spread to other states.  I think it's encouraging that there isn't any whining from business.  Perhaps they are willing to accept this new normal.