Market forces have verified legal assumptions for the creation of the California Allowance Price Containment Reserve (APCR). Subsequent sales from this vehicle do not attract any participants. Does this mean that the Reserve works as initially predicted or something has failed?
The California cap-and-trade scheme regulator - the Air Resources Board - hase made a communication that as of the bid guarantee deadline of June 17, 2013, no covered entities or opt-in entities had indicated an intent to bid at the June 2013 reserve sale and provided a bid guarantee. Therefore, the Air Resources Board will not be holding the reserve sale scheduled for June 27, 2013.
The lack of interest to participate in the reserve sale of California allowances becomes slowly a rule in the California carbon market. The same occurrence took place as regards the reserve sale on March 8, 2013.
Taking into account legal arrangements representing the base for the APCR functioning the above outcome could have been predicted earlier - see: Reasons why the California reserve sale scheduled for March 8, 2013 was not successful.
The next reserve sale is scheduled for September 27, 2013. A notice for that reserve sale will be posted approximately 30 days prior to the scheduled date. All allowances for the June 2013 reserve sale will be made available at the September 2013 reserve sale.