Dive Brief:
- The Regional Greenhouse Gas Initiative has completed its 29th CO2 allowance auction, with more than 25 million allowances sold at a clearing price of $6.02/ton.
- The auction included an initial 15 million CO2 allowances and another 10 million additional Cost Containment Reserve allowances.
- The regional greenhouse gas group said bids for the allowances ranged from $2.05 to $10.00 per allowance.
Dive Insight:
The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative have completed the 29th auction for CO2 allowances, with some 25,374,294 CO2 allowances sold at a clearing price of $6.02/ton.
That figure includes 10 million additional Cost Containment Reserve allowances, which are a fixed supply that are only available for sale if CO2 allowance prices exceed certain price levels ($6 in 2015, $8 next year and $10 in 2017).
“This auction comes directly on the heels of several independent reports which have reinforced RGGI’s benefits to consumers, the economy, and our environment,” said Katie Dykes, deputy commissioner for energy of the Connecticut Department of Energy and Environmental Protection, and chair of the RGGI board of directors.
The group said there are no more CCR allowances available for sale in 2015, though they will be replenished next year. Bids for CO2 allowances reached $10/ton, RGGI said; cumulative proceeds from all CO2 allowance auctions exceed $2.2 billion dollars for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs.
The September 9th auction was the third this year and generated over $152 million.
“States across the country are preparing for the implementation of EPA’s Clean Power Plan," Dykes said in a statement. "With a seven year track record the RGGI states have demonstrated that reducing pollution is fully compatible with economic growth and providing reliable power."