Latest RGGI Auction Shows Strength of Carbon Markets
The Regional Greenhouse Gas Initiative concludes 20th auction of carbon dioxide allowances.
GLOBE-Net, June 12, 2013 – The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based regulatory program to reduce greenhouse gas pollution, have announced the results of their 20th auction of carbon dioxide (CO2) allowances.
38,782,076 CO2 allowances were sold at the auction, held Wednesday, June 5, 2013, at a clearing price of $3.21. The auction generated $124.4 million for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including energy efficiency, renewable energy,direct bill assistance, greenhouse gas abatement, and climate change adaptation programs.
Allowances sold represent 100 percent of the allowances offered for sale by the nine states. Bids for the CO2 allowances ranged from $1.98 to $5.55 per allowance.
According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 86 percent of CO2 allowances sold in RGGI auctions since 2008. Additional details are available in the Market Monitor Report for Auction 20, appended and available here.
“With twenty auctions completed, RGGI continues to generate hard data showing that marketbased emission reduction programs are an effective way to realize environmental goals, save consumers money, and create jobs,” said Collin O’Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control and Chair of the RGGI, Inc. Board of Directors.
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“Delaware’s reinvestment of auction proceeds in energy efficiency programs has not only avoided carbon pollution, but helped businesses and families reduce their electricity bills, and workers find jobs weatherizing homes, retrofitting outdated industrial equipment, and constructing more energy-efficient buildings.”
“This auction again demonstrates how the involvement of compliance entities in the RGGI program has been a key reason for its success,” said David Littell, a Commissioner of the Maine Public Utilities Commission and Vice-Chair of the RGGI, Inc. Board of Directors.
“Whether they are helping us make improvements to the program, upgrading their facilities to be more efficient, or doing their everyday job of generating the energy we need to keep our computers running, our houses warm, and our lights on, compliance entities are essential partners in the RGGI states’ effort to build a cleaner, more energy-efficient economy.”
The next RGGI auction is scheduled for September 4, 2013.
About Regional Greenhouse Gas Initiative, Inc.
The Regional Greenhouse Gas Initiative, Inc. (RGGI, Inc.) was created to provide technical and administrative services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c)(3) nonprofit organization. For more information, visit: www.rggi.org/rggi.
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