Carbon Trading Up 42% in Latest RGGI Auction

The Northeastern states participating in the Regional Greenhouse Gas Initiative (RGGI) announced that trading of carbon permits rose 42% in the most recent auction.

More than 40.6 million carbon allowances sold at a price of $2.07 on Wednesday, March 10. That’s up from 28.6 million allowances sold at the previous auction in December, when the average selling price was $2.05 per allowance.

However, prices have fallen about a third since June 2009, when the average price was $3.23.

The latest auction yielded $87.9 million. Proceeds from all auctions held to date now total more than $582.3 million.

The RGGI states–Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont–are investing proceeds to improve energy efficiency and accelerate the deployment of renewable energy technologies.

"Expanded efficiency programs, funded in part by RGGI, are expected to create or maintain nearly 4,000 energy efficiency jobs in Massachusetts over three years," said Phil Giudice, Commissioner of the Massachusetts Department of Energy Resources. "The people trained and employed through these programs are designing and installing cost-effective efficiency measures that cut energy waste and save consumers money."

New York State is investing RGGI proceeds to train hundreds of workers needed to improve the efficiency of homes and businesses to meet the state’s aggressive energy efficiency targets. As part of its $112 million investment in building sector energy efficiency improvements and job training the New York State Energy Research and Development Authority (NYSERDA) will partner with constituency-based organizations, community colleges, unions and other groups to build and expand training and certification programs for emerging workers, building remodelers, HVAC technicians, energy auditors and engineers.

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The Western Climate Initiative says it is on track to begin cafbon trading in 2012–minus Arizona, Washington and Montana. Still, the cap-and-trade system is expected to be four times larger than the RGGI. 

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