California ready for cap-and-trade scheme

Uncertainty remains as state launches world's second-largest emissions trading scheme

California has launched the centrepiece of its of its fight against climate change, successfully auctioning more than 20 million carbon-emission permits on 19 November and laying the foundation for the state’s cap-and-trade scheme, the second-largest emissions trading scheme in the world. Although successfully off the ground after years of planning, the market still faces major challenges. The settled price for the 2013 permits was $10.09 per tonne of carbon dioxide (CO2), just 9 cents more than the $10 per tonne floor price set before the auction. California carbon allowances (CCAs) for 2013 were trading in futures markets ahead of the auction at around $12 per tonne, and market participant