Dive Brief:
- The Regional Greenhouse Gas Initiative last week announced the results of its 30th auction for carbon allowances, with 15,374,274 CO2 allowances sold at a clearing price of $7.50/st.
- That's a new record, reports Platts, coming in almost 25% above the September auction, which was also a record high at just above $6/st.
- The auction generated more than $115 million for reinvestment in strategic programs, including energy efficiency, renewable energy, and direct bill assistance, according to RGGI administrators.
Dive Insight:
The price for carbon allowances has hit peaks in the last two RGGI auctions, and administrators say the program is sending the proper market signals to the nine Northeastern and Mid-Atlantic states participating in the regional program to reduce greenhouse gas emissions.
“RGGI’s market-based program provides a clear market signal to reduce pollution, while states invest the proceeds in strategic consumer and energy programs," said Katie Dykes, who chairs RGGI's Board of Directors and also serves as Deputy Commissioner for Energy of the Connecticut Department of Energy and Environmental Protection. “As we work with stakeholders on our 2016 RGGI program review, we hope to build on this success.”
There were 51 bidders in the auction, and all allowances offered for sale were purchased. RGGI said it had a 3-1 ratio of bids to supply. Total proceeds from all of the group's auctions now exceed $2.3 billion. Allowance bids ranged from $2.05 to $10.01, and two bidders acquired more than 3 million allowances.
“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's board. “RGGI’s successful approach is reflected in the EPA Clean Power Plan, and serves as a positive example to the nation and the world.”
