There is much conversation about the "price of carbon." We thought it useful to list the varied prices that exist in the many markets around the world.

Environmental commodities (emission credits, carbon credits and renewable energy credits) are some of the most esoteric commodities traded on markets. Price discovery and liquidity is a luxury often not afforded to these markets, so pricing, buying and selling these commodities can often be difficult and confusing. It is for this reason that clients occasionally ask Dentons to provide pricing evaluations of these markets. Most recently, the implementation of the California and the China carbon markets has increased the interest in prices for environmental commodities across the board. The following is a snapshot of some key indexes currently trading in the markets.

 Commodity  Description  Average Price  Notes
 EUA European Union Allowance: The greenhouse gas credit traded under the Kyoto Protocol  US$5.75/ton When Kyoto Protocol was at its most active, prices were around US$15. The dramatic drop came because a new phase of Kyoto was not approved.
 CER Certified Emission Reduction: A greenhouse gas credit created by a reduction project under the Kyoto Protocol's Clean Development Mechanism (CDM)  US$0.15/ton When Kyoto Protocol was at its most active, prices were around US$15. The dramatic drop came because a new phase of Kyoto was not approved.
 CCA California Carbon Allowance: Greenhouse gas allowance credit under the AB-32 program  US$11.75/ton  Market sets a floor price of US$10.
 CCO California Carbon Offset: A greenhouse gas project credit under CA's AB-32 program  US$10.00/ton An offset historically trades at a discount to an allowance.
 CCER China Certified Emission Reduction: Credits created by carbon reduction projects in one of the five regional Chinese carbon schemes  US$3.50/ton Certain CERs from the CDM market can be transferred into this program.
 NJ SREC New Jersey Solar Renewable Energy Credit  US$180/Mwh Produced from solar projects that can sell the power into New Jersey.
 MA SREC Massachusetts Solar Renewable Energy Credit  US$280/Mwh Produced from solar projects that can sell the power into Massachusetts.

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