Report to the California Air Resources Board regarding the volume of unused allowances following the November 1, 2021 surrender deadline for the third multi-year compliance period of the Cap-and-Trade Program

Summary

California's Cap-and-Trade Program faces concerns that an oversupply of allowances and low auction activity might impede its greenhouse gas reduction targets. The California Air Resources Board (CARB) evaluated unused allowances from 2013-2020, concluding that the program's design, including a self-ratcheting mechanism, is robust and effectively driving emissions reductions through an increasing carbon price. The program is ongoing, with data indicating its mechanisms are functioning as intended to encourage a steady rise in carbon prices.

Key Facts

Source Document

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