|$71.5 Million Raised for Reinvestment in Final Auction of 2018
News Release and Market Monitor Report Now Available:
NEW YORK — The nine New England and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based regulatory program to reduce greenhouse gas (GHG) pollution, today announced the results of their 42nd auction of carbon dioxide (CO2) allowances.
13,360,649 CO2 allowances were sold at the auction at a clearing price of $5.35. Bids for the CO2 allowances ranged from $2.20 to $7.50 per allowance. Additional details are available in the Market Monitor Report for Auction 42.
The auction generated $71.5 million for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs.
Ten million cost containment reserve (CCR) allowances were also available for sale. None of the CCR allowances were sold. The CCR is a fixed additional supply of allowances that are only available for sale if CO2 allowance prices exceed certain price levels ($10.25 in 2018).
“With Auction 42, the RGGI states conclude the final auction of 2018, a year of steady bipartisan environmental progress,” said Ben Grumbles, Secretary of the Maryland Department of the Environment and Chair of the RGGI, Inc. Board of Directors. “This auction also follows the latest report on the investment of RGGI proceeds, which showed continuing benefits. State-specific programs funded through RGGI proceeds have supported such diverse outcomes as weatherizing homes, incentivizing the purchase of electric vehicles, and installing highly efficient combined heat and power.”
“It’s no surprise that new states are showing interest in participating in our market-based program,” said Katie Dykes, Chair of the Connecticut Public Utilities Regulatory Authority and Vice Chair of the RGGI, Inc. Board of Directors. “The conclusion of another successful auction builds on a now decade-long track record of auctioning, reinvestment, and ambitious emissions reductions.”
More auction data is also available at: https://rggi.org/auctions/auction-results.
Market monitor reports are available at: https://rggi.org/auctions/market-monitor-reports.
To receive announcements relating to future auctions and other RGGI news, please join the RGGI, Inc. mailing list at http://eepurl.com/h2lCM.
About the Regional Greenhouse Gas Initiative
The New England and Mid-Atlantic states participating in the fourth RGGI control period (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) have implemented the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. The 2018 RGGI cap is 82.2 million short tons. The RGGI states also include interim adjustments to the RGGI cap to account for banked CO2 allowances. The 2018 RGGI adjusted cap is 60.3 million short tons.
RGGI is composed of individual CO2 budget trading programs in each state, based on each state’s independent legal authority. A CO2 allowance represents a limited authorization to emit one short ton of CO2, as issued by a respective state. A regulated power plant must hold CO2 allowances equal to its emissions for each three-year control period. RGGI’s fourth control period began on January 1, 2018 and extends through December 31, 2020. For more information visit www.rggi.org.
About Regional Greenhouse Gas Initiative, Inc.
Regional Greenhouse Gas Initiative, Inc. (RGGI, Inc.) was created to provide technical and administrative services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c)(3) nonprofit organization. For more information, visit www.rggi.org/rggi-inc/contact.