California Carbon Allowances

A California Carbon Allowance (CCA) is a tradable compliance instrument issued under California’s Cap-and-Trade Program. Each allowance represents the right to emit one metric ton of CO₂ (or equivalent greenhouse gases).

We provide liquidity in cleared CCA options for funds, trading houses and commodity participants, enabling them to trade confidently and efficiently.

Trade allowances

Gain access to CCAs (California Carbon Allowances) across compliance periods with flexible trading sizes and delivery schedules.

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Competitive pricing

We offer competitive pricing and risk-management solutions that help clients stabilise costs, lock in value, and manage market exposure.

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Expert advice

Leverage our expertise in emission markets, surrender strategies, and regulatory updates to maintain smooth compliance and avoid penalties.

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CCAs: Powering Climate Compliance

CCAs form the backbone of California’s Cap-and-Trade Program, requiring covered entities such as utilities, refiners and industrial facilities to surrender allowances equal to their emissions. Trading CCAs allows organisations to meet regulatory obligations, manage exposure and invest in the clean energy transition.

CCAs Made Simple

We specialise in trading CCA options and futures, enabling clients to manage compliance costs, hedge market exposure and capture opportunities in one of the world’s most established carbon markets. Whether your focus is regulatory compliance or strategic investment, Grey Epoch provides tailored solutions designed around your objectives.

Take the Next Step

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Ensure your California carbon compliance and trading strategy with Grey Epoch.

Contact us for market liquidity.

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  • 40%

    typical savings in trading fees

  • 1bn

    carbon products traded annually

  • 18yrs

    active in carbon markets

 FAQs

 

  • CCAs represent the right to emit one tonne of CO₂ equivalent under California’s cap-and-trade program, which has been instrumental in reducing state emissions by over 15% since 2013.

  • Allowances can be accessed through regulated exchanges such as ICE, Nodal Exchange, or the Montreal Climate Exchange, as well as through market players like Grey Epoch.

    • Large emitters: Facilities in electricity generation and major industrial sectors emitting ≥ 25,000 tCO₂e/year must participate.

    • Fuel suppliers: Distributors of transportation fuels and natural gas are included (added in 2015).

    • Optional participation: Smaller emitters in covered sectors can opt in voluntarily to participate in the market.

  • They complement California’s Low Carbon Fuel Standard and other climate initiatives, collectively supporting the state’s ambitious carbon reduction targets.