U.S. East Coast’s Carbon Market Surges as More States Join

(Bloomberg) -- Prices in the U.S. East Coast’s carbon market surged to the highest since 2015, bucking impacts from the coronavirus as the program expands into three more states.

Prices for permits for power plants to emit carbon dioxide rose 10 cents to $5.75 a ton in the 10-state Regional Greenhouse Gas Initiative’s quarterly auction, according to a statement Friday. New Jersey rejoined the voluntary program this year. Virginia plans to enter in 2021. And Pennsylvania Governor Tom Wolf has ordered his state to plan to join, which would expand the group to 12 states.

“Some new buyers are coming in and that’s bullish,” Paul Tesoriero, director of environment trading at Evolution Markets Inc. said in an interview.

Last month, California’s cap-and-trade system sold just 35% of pollution permits available in a quarterly auction as falling emissions from the pandemic crushed demand. It raised just $25 million, a 96% decrease from the previous sale in February.

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