The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based cap-and-trade program to reduce greenhouse gas pollution,have announced the results of their 22ndauction of carbon dioxide (CO2) allowances.
38,329,378 CO2 allowances were sold at the auction at a clearing price of $3.00. Allowances sold represent 100 percent of the allowances offered for sale by the nine states. Bids for the CO2 allowances ranged from $1.98 to $12.00 per allowance.
The auction generated $114.9 million for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including energy efficiency, renewable energy, direct bill assistance, and greenhouse gas abatement programs. Cumulative proceeds from all RGGI CO2 allowance auctions currently total $1.5 billion dollars.
“After twenty-two auctions, RGGI has demonstrated that regional carbon pollution programs can cost-effectively reduce emissions while strengthening the economy,” said Collin O'Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control and Chair of the RGGI, Inc. Board of Directors. “By harnessing market forces and aligning state policies, RGGI has helped states significantly lower emissions while building a clean energy infrastructure.”
“The RGGI states demonstrated they were early movers in 2008, when they were the first region in North America to conduct a CO2 allowance auction,” said David Littell, a Commissioner of the Maine Public Utilities Commission and Vice-Chair of the RGGI, Inc. Board of Directors. “Having now held twenty-two CO2 auctions in five and a half years, RGGI has demonstrated a market-based system that finds the lowest-cost CO2 reductions.”