CCX – Chicago Climate Exchange – Market Price $0.25
RGGI – Regional Greenhouse Gas Initiative – Market Price $2.95
CCAR – California Climate Action Registry – Market Price $4.25
VCS – Voluntary Carbon System – Market Price $5.00
CCX 2013 – US Federal Program Credit – Market Price $10.50
CER – Certified Emissions Reduction – Market Price $18.38 (E13.00)
EUA – European Union Allowance – Market Price $20.85 (E14.75)

The mandated programs in Europe trade at the highest prices as you would expect. The CCX 2013 credits are priced roughly at 50% of the EUA credits, implying a much weaker program adopted in the US. The market is also telling us that early action is likely with each CCAR being worth roughly half the federal program and each RGGI being worth a third.

This is where it gets complicated. The value of a ton of carbon reduced is dependent on the program mandate, the project type, the vintage, and the geography. All tons of carbon reduced are not equal. In essence, the various registries and programs have already begun to grade carbon. It seems like only a matter of time before rating agencies begin to rate the credits. Next step ratings, then roll them up in tranches, securitize them into Carbon Backed Securities (CBS), and trade them….