SAN FRANCISCO (Reuters) - California begins a market for greenhouse gases next year and prices will rise several times over between 2012 and 2020 under the plan to address climate change, Thomson Reuters research firm Point Carbon forecasts in a new report.
It forecast the price of carbon would rise from about $13 per metric ton in 2012 to $75 per ton in 2020.
California aims to give away many of the permits to emit carbon dioxide to factories and utilities early in the program, but prices will rise as state giveaways slow and because of a likely shortfall in offset credits for projects which soak up carbon, Point Carbon said.
For a special report on California’s carbon market in multimedia PDF format, click here:
Reporting by Peter Henderson; editing by Claudia Parsons