The Regional Greenhouse Gas Initiative (RGGI) sold more than 15.5 million carbon dioxide (CO2) allowances at a clearing price of $5.50 during the 28th auction, which took place on June 3.
Results of the auction by the nine Northeastern and Mid-Atlantic states participating in RGGI were announced June 5. RGGI is nation’s first market-based regulatory program to reduce greenhouse gas (GHG) pollution.
15,507,571 CO2 allowances were sold at the auction at a clearing price of $5.50. Bids for the CO2 allowances ranged from $2.05 to $12.50 per allowance.
The auction generated $85m for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs, RGGI said in a news release. Cumulative proceeds from all RGGI CO2 allowance auctions are $2.1bn.
RGGI’s Auction 27, conducted in March, fetched a closing price of $5.41. RGGI had said in May that the average 2014 CO2 auction clearing price was $4.72, a 62% increase from $2.92 in 2013.
As usual, the RGGI news release was accompanied by an Auction 28 report by RGGI’s market monitor, Potomac Economics.
Forty-eight bidders participated in the offering of CO2 allowances. Bids were submitted to purchase 3.1 times the available supply of allowances, resulting in a clearing price of $5.50 per ton. Compliance-oriented entities purchased 47% of the allowances in the offering.
There was no indication of barriers to participation in the auction, Potomac Economics said.
The minimum bid price was $2.05 and the maximum bid was $12.50, according to the report. The average-median price was $5.38; the average-mean was $4.82 and the clearing price was $5.50.
RGGI’s participating states include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.