California Auctions: Follow the Money

Understanding California’s auction is no small feat – and yet being able to follow the complex flows of allowances and revenues between the California state government and market participants is essential to the underpinning of the state’s cap-and-trade program. It is also an exercise in democracy as California voters and ratepayers should understand how the money is flowing back to them or being invested in projects that further the state goal of reducing greenhouse gas emissions.

Auction Flowchart

View the full size version of the chart: Auction Flowchart