RGGI Auction Yields $104.2M For Green Investment


The states participating in the first-in-the-nation cap-and-trade system for greenhouse gases (GHGs) conducted their fourth regional auction of carbon allowances on June 17, and raised $104.2 million for investment in the clean energy economy.

Under the Regional Greenhouse Gas Initiative (RGGI), these 10 partnering states hold quarterly allowance auctions and invest the proceeds in energy efficiency, renewable energy and other programs that benefit energy consumers and create green jobs.

All of the 30,887,620 allowances for the 2009 vintage offered in the recent auction sold at a price of $3.23. Potomac Economics, the RGGI independent market monitor, says 54 separate entities submitted bids to purchase 2.6 times the available supply of 2009 allowances. Compliance entities and their affiliates purchased 85% of the 2009 allowances offered.

In a parallel offering, the RGGI states also auctioned allowances for the second three-year control period beginning Jan. 1, 2012. All of the 2,172,540 allowances for the 2012 vintage sold at a price of $2.06, with 13 entities submitting bids to purchase 1.5 times the available supply of 2012 allowances. Compliance entities and their affiliates purchased 81% of the 2012 allowances offered.

The states have now auctioned more than 110 million allowances and raised a total of $366.5 million since the first RGGI auction in September 2008.

SOURCE: Regional Greenhouse Gas Initiative Inc.

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