SURVEY: Compliance entities predict price collapse in California carbon market

SAN FRANCISCO - Oct. 21, 2013 - PRLog -- San Francisco – californiacarbon.info last week concluded its highly successful Vote for California compliance markets survey aimed at gauging market sentiment on a host of crucial topics including future price movements, proposed regulatory questions, and offset protocols. At Friday’s exclusive survey review webinar, the much-anticipated results were revealed to survey partners and respondents.

The 58 respondents that completed the survey represented a cross-section of the parties involved in the market, with brokers, traders, investors, compliance entities, consultants, lawyers, members of governmental bodies or industry associations, players within the offsets industry, as well as academic and industry researchers, all casting their votes.

In a fashion highly reflective of the uncertainty still lingering within this emerging market, responses to most questions tended not to yield clear majority votes. While most polled thought ARBOC prices would be in the $10-13 range in a year’s time, and the lack of support for the notion that the expected EPA ruling would hurt the CCM was obvious, no clear consensus emerged for the other questions.

In the end, the clearest trend observed concerned the compliance entities, of whom the majority who voted predicted another floor-price clearing in the November auction as well as an under-$10 offset price in October 2014. Along with their indication that AB32 targets are too low given the economic slowdown, these answers put them at odds with the others, particularly the brokerage and consultant communities. Given it is them who ultimately decide instrument demand, this may be taken as a portent of further bearishness to come.

A condensed two-page survey results summary has been prepared for circulation at next week’s Argus California Carbon Summit, where californiacarbon.info is a media partner. In addition, the webinar slides, with full data analysis and presentation, will be made available online for survey participants.

http://californiacarbon.info/

- ends -

For more information please contact:

Nitin Tanwar
Founder and CEO
nitin.tanwar@climate-connect.com
+44 207 193 8996
+91 988 866 6794

About CaliforniaCarbon.info

Californiacarbon.info, a news, data and analysis website focused on carbon markets in California, is operated by Climate Connect Ltd, an online media firm headquartered in London. Founded in 2010, Climate Connect Ltd has offices in London and New Delhi. Californiacarbon.info is advised by a distinguished Board of Advisors based in Bay Area and New Hampshire that have over 40 years of cumulative experience in carbon markets and online media, and has a dedicated editorial, IT and research desk to support the work.