Friday, March 07, 2014

CO2 Allowances Sold at $4.00 at 23rd RGGI Auction

First Auction with New RGGI 2014 Cap 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, today announced the results of their 23rd auction of carbon dioxide (CO2) allowances.

23,491,350 CO2 allowances were sold at the auction at a clearing price of $4.00. Allowances sold include the 18,491,350 allowances offered for sale by the nine states and all of the 5,000,000 allocation year 2014 cost containment reserve (CCR) allowances. Bids for the CO2 allowances ranged from $2.00 to $11.85 per allowance.

The CCR is a fixed additional supply of allowances that are only available for sale if CO2 allowance prices exceed certain price levels ($4 in 2014, $6 in 2015, $8 in 2016, and $10 in 2017, rising by 2.5 percent, to account for inflation, each year thereafter). There are no more CCR allowances available for sale in 2014.

According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 78 percent of CO2 allowances sold in RGGI auctions since 2008. Additional details are available in the Market Monitor Report for Auction 23.

The auction generated $93.96 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 over $1.6 billion dollars. (RGGI)

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Auction 23 Results At-A-Glance
Auction DateMarch 5, 2014
Allowances Offered for Sale18,491,350
2014 CCR Allowances Available for Sale5,000,000
Allowances Sold23,491,350
Ratio of Bids to Initial Supply3.1
Ratio of Bids to Total Supply with CCR2.5
Clearing Price$4.00
Reserve Price$2.00
Proceeds from Auction 23$93,965,400
Total Cumulative Proceeds (All Auctions)$1,661,724,034.96
Number of Bidders in Auction 2345
Percent of Allowances Purchased by Compliance Entities & their Corporate Affiliates in Auction 2345%
Percent of Allowances Purchased by Compliance Entities & their Corporate Affiliates in Auctions 1-2378%
More data is also available at:

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