California Cap-and-Invest Program Allowance Price Containment Reserve Sales

Summary

California's Cap-and-Invest Program faces the challenge of managing carbon allowance price volatility to maintain a stable market. The California Air Resources Board addresses this by implementing an Allowance Price Containment Reserve, which sells additional allowances at fixed prices under specific market conditions or on a scheduled annual basis. For 2026, sales are planned with set prices and volumes across two tiers, and while a September sale is guaranteed, others depend on preceding auction prices.

Key Facts

Source Document

https://example-government.gov/policy-document-link