The Regional Greenhouse Gas Initiative (RGGI), the nation’s first trading market for greenhouse gas (GHG) allowances, saw a clearing price of $2.67 per CO2 allowance in its latest auction, RGGI said Sept. 6.
The nine Northeastern and Mid-Atlantic states participating in RGGI saw 38,409,043 CO2 allowances were sold at the auction at a clearing price of $2.67. Allowances sold represent 100% of the allowances offered for sale by the nine states. Bids for the CO2 allowances ranged from $1.98 to $12.85 per allowance.
The auction held Wednesday, Sept 4, marks five years since the launch of the RGGI auctions in 2008.
The auction generated $102.5m for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including energy efficiency, renewable energy, direct bill assistance, and greenhouse gas abatement programs. Cumulative proceeds from all RGGI CO2 allowance auctions currently total $1.4bn dollars.
According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 84% of CO2 allowances sold in RGGI auctions since 2008.
“Having realized a more than 30 percent reduction in regional power sector carbon dioxide pollution, the RGGI states continue to operate one of the most cost effective market-based carbon reduction programs in the world,” said Collin O’Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control and Chair of the RGGI Board of Directors.
Auction 21 included a list of 52 potential bidders.