Lessons Learned from California’s First Cap and Trade Auction

12/12/2012 11:30 a.m. - 02:00 a.m.

Clean Technology and Environmental Litigation + Regulatory

Morrison & Foerster LLP
425 Market Street
San Francisco, CA 94105


Melissa Ruth
(415) 268-7222

On December 12, 2012, Morrison & Foerster LLP will be hosting Agrion’s "Lessons Learned from California’s First Cap-and-Trade Auction” event. The State of California recently launched its Cap-and-Trade program to address greenhouse gas emissions under California's Global Warming Solutions Act (AB 32). The state-run auction that initiated the program was held on November 14, 2012, and resulted in the sale of more than twenty million allowances at a price of approximately $10 per ton. This government auction resulted in hundreds of millions of dollars in new revenue for the state, and is only the first of what will be regularly scheduled quarterly auctions into the foreseeable future. As this new carbon market develops, estimates of the trading value are in the billions of dollars. Please join our experienced panelists for an in-depth discussion of the inaugural auction results, the legal challenges to this auction mechanism, how the market is likely to develop, and what else should be expected going forward from this broad-scale regulatory program.

Issues which will be addressed:

  • What are the results of the first GHG market auction (scheduled for November 14, 2012)?
  • What are the implications of CARB’s proposed new program for allowing free carbon allowances for companies at risk of leaving the state due to the impact on their competitiveness?
  • Is the Cap-and-Trade program susceptible to fraud and market manipulation?
  • How will the expected billions of dollars of revenue generated be spent (e.g. AB 1532)?
  • What can be expected from the remaining two market auctions during the 2012-2013 Fiscal year?
  • How is CARB working to reduce the risk of fraud and market manipulation?
  • What other market-based programs are likely to link with California’s Cap-and-Trade program (e.g. Québec; Regional Greenhouse Gas Initiative; European Union)?
  • How difficult is it to establish a feasible common set of rules between these regional programs?
  • What are the advantages and disadvantages of linking regional programs?



  • Jon Costantino
    Senior Advisor, Manatt, Phelps & Phillips, LLP
  • Brad Neff
    Cap-and-Trade Implementation Manager, PG&E
  • Alex Rau
    Principal, Climate Wedge Ltd.
  • Joel Levin
    VP of Business Development, Climate Action Reserve

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