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 (GHG) pollution, continue to see higher auction prices for carbon dioxide (CO2) allowances.
RGGI announced Dec. 4 that the results of their 30th auction of 15,374,274 CO2 allowances were sold at the auction at a clearing price of $7.50. Bids for the CO2 allowances ranged from $2.05 to $10.01 per allowance. Additional details are available in the Market Monitor Report for Auction 30.
The auction prices announced Dec. 4 where higher than the $6.02 clearing price for allowances in the 29th auction in September and also higher than the $5.50 clearing price for the 28th auction, which took place in June.
CO2 allowance prices seem to have been climbing since the Environmental Protection Agency (EPA) announced its Clean Power Plan this past summer. The rule is designed to have states draft plans to cut power sector CO2 emissions 32% by 2030. On a side note, Auction No. 30 also came as world leaders gathered in Paris to discuss climate change issues.
The December 2nd auction was the fourth and final auction of 2015, and generated $115.3m for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs. Cumulative proceeds from all RGGI CO2 allowance auctions exceed $2.3bn dollars.
“RGGI’s market-based program provides a clear market signal to reduce pollution, while states invest the proceeds in strategic consumer and energy programs. The RGGI states are on pace to cut our 2005 power-sector carbon emissions in half by 2020, while generating customer energy savings and strengthening the economy,” said Katie Dykes, Deputy Commissioner for Energy of the Connecticut Department of Energy and Environmental Protection, and Chair of the RGGI, Inc. Board of Directors. “As we work with stakeholders on our 2016 RGGI program review, we hope to build on this success.”
“With world leaders now convening in Paris, the attention toward reducing harmful carbon pollution is greater than ever,” said Tom Burack, Commissioner of the New Hampshire Department of Environmental Services and Secretary of the RGGI, Inc. Board of Directors. “RGGI’s successful approach is reflected in the EPA Clean Power Plan, and serves as a positive example to the nation and the world.”