Sacramento, CA — An appeals court’s ruling to uphold the Cap-and-trade program has caused a spike in demand for California pollution permits in the first quarterly auction.
The rebound was noted on Wednesday by the California Air Resources Board, which stated that it sold out of permits to release greenhouse gases during 2017. The prices were pushed above the minimum as demand exceeded the total supply with nearly 22 percent of permits for future emissions sold.
Last year the market plummeted due partly to uncertainty from a lawsuit that contended the auctions were a violation of California’s constitution. In April the appeals court rejected that argument. The appeal now heads to the state Supreme Court.
California’s cap-and-trade program is one of the main sources of funding for the high-speed rail project and anti-climate change efforts.