Carbon allowances are now available for sale in California. Companies that emit more than 25,000 tons of carbon-dioxide equivalent a year (CO2e) in the power, oil, and industrial sectors will now have to turn in permits for every ton they emit this year and the years to come. Things are moving fast in California right now, so here’s a primer on what’s happening and what to expect for the coming months.

Are people really buying carbon permits?
Yes. Currently California Carbon Allowances (CCAs) are trading for about $15 a ton on the secondary market. Point Carbon reported a big spike in volume traded since January 1st, as a lot of new companies have entered the markets and are cutting their teeth on West Coast-style carbon trading.