Nathaniel Keohane, Vice President (and former Chief Economist) for EDF said, "This inaugural auction was a successful first step in setting a fair price on carbon. The demand for 2013 allowances was greater than the supply, showing that businesses are ready to be active participants in cleaning up California's air." The auction set into motion a robust carbon market that will aid California in achieving its climate change pollution goals in a cost effective manner. By establishing a price on carbon, the new market gives regulated industries a market incentive to find innovative solutions to reduce their pollution.
Timothy O'Connor, EDF's Director of California Climate and Energy Initiative said, "The smooth execution of this first auction paves the way for a cleaner California. With cap and trade, Californians don't have to choose between the environment and the economy. It will attract more investments in clean energy, keep California competitive, and reduce our dependence on foreign oil." The next allowance auction is scheduled for February 2013. Quarterly auctions, combined with as needed cost containment reserve sales of allowances, will ensure sufficient opportunity for bidders to obtain the allowances they will need for compliance.