The states participating in the Regional Greenhouse Gas Initiative
(RGGI) said on Friday they raised more than $117 million in a third auction of carbon emission permits for power plants, about $10 million more than the last sale in December 2008.
The March 18th auction was the first since compliance obligations under RGGI’s
first three-year control period began January 1, 2009.
All of the 31,513,765 allowances for the 2009 period sold at a clearing price of $3.51 per
allowance.
In a parallel offering, the RGGI states also auctioned allowances for the second three-year
control period beginning in 2012, providing a first-look at future market prices for RGGI CO2
allowances.
The 2,175,513 allowances for the 2012 period cleared at a price of $3.05 per
allowance. By the end of 2009, the RGGI states will have offered for sale 5% of the total supply
of 2012 vintage allowances, according to a release.
The auction raised $117,248,629.80, which will be applied to energy efficiency, renewable energy and other
consumer benefit programs in the ten RGGI states–Connecticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.
“The states are very pleased with the results from the latest RGGI auction,” said Pete Grannis,
Chair of the Regional Greenhouse Gas Initiative, Inc. Board of Directors. “Our continued
success provides further support for President Obama’s position that a national cap and trade
program with allowance auctions is the right policy for the country and the right approach for
addressing the most pressing environmental and economic issue of our time: climate change.”
50 separate entities
submitted bids to purchase 2.5 times the available supply of 2009 allowances, and 20 entities
submitted bids to purchase 2.3 times the available supply of 2012 allowances.
The complete Auction Report for the RGGI CO2 Allowance Auction 3 is available at the link below.
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