California carbon prices are stuck. Here's why.
Prices in California's carbon market are expected to remain low in a state auction Wednesday, minimizing the amount of money the market generates for projects that address pollution and climate change.
California's carbon market has raised $32 billion since 2013 for climate-related projects by selling at quarterly auctions pollution allowances that each represent a ton of greenhouse gas emissions.
But the auction prices have fallen in the past year and are expected to remain low or drop further Wednesday due to uncertainty about California's carbon market.
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'It's very concerning, especially at a time when we're facing a significant budget deficit,' said Katelyn Roedner Sutter, California state Ddrector at the Environmental Defense Fund. 'There's more pressure to fund priorities out of the [auction revenues] because we don't have as many general fund dollars available as we would otherwise.'
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