Government Energy Policy, Business and Technology

California pollution permits sell at highest price ever

AP: SACRAMENTO, Calif. (AP) — California raised more than $640 million this month auctioning off permits for businesses to emit greenhouse gases as part of a program aimed at fighting climate change, according to state data released Tuesday.

Last week’s auction was the state’s first since lawmakers voted to extend California’s cap and trade program through 2030. It requires businesses, oil refineries and other polluters to obtain permits to be able to emit carbon, with the overall goal of drastically reducing emissions. Money raised through the auctions goes to projects such as high-speed rail, public transit and housing projects.

Demand for the permits rebounded in this month’s auction after more than a year of flagging interest as businesses waited to see if the program would continue.

Permits for near-term emissions sold for $14.75, while future allowances went for $14.55 as companies snapped up permits before prices rise over the next 13 years. The sale price was nearly $1 higher than the price last quarter.

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