CO2 Allowances Sold for $5.41 in 27th RGGI Auction

Total Proceeds for Reinvestment Now Exceed $2 Billion

 

The nine Northeastern 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 27^th auction of carbon dioxide (CO₂) allowances. The March 11^th auction was the first auction of 2015.

15,272,670 CO₂ allowances were sold at the auction at a clearing price of $5.41. Allowances sold represent 100 percent of the CO₂ allowances offered for sale by the nine states. Bids for the CO₂ allowances ranged from $2.05 to $12.50 per allowance. Additional details are available in the Market Monitor Report for Auction 27.
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10 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 ($6 in 2015, $8 in 2016, $10 in 2017, and rising by 2.5 percent each year thereafter to account for inflation). The 10 million CCR allowances remain available for sale in 2015.
 
The auction generated more than $82 million for reinvestment in strategic energy and consumer benefit programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs. Cumulative proceeds from all RGGI CO₂ allowance auctions now exceed $2 billion dollars.
 
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Auction 27 Results At-A-Glance
Auction Date	March 11, 2015
Allowances Offered for Sale	15,272,670
Allowances Sold	15,272,670
Ratio of Bids to Initial Supply	2.8
Clearing Price	$5.41
Reserve Price	$2.05
Proceeds from Auction 27	$82,625,144.70
Total Cumulative Proceeds (All Auctions)	$2,017,671,088.75
Number of Bidders in Auction 27	45
Percent of Allowances Purchased by Compliance Entities & their Corporate Affiliates in Auction 27	100%
Percent of Allowances Purchased by Compliance Entities & their Corporate Affiliates in Auctions 1-27	78%

 

More data is also available at: http://www.rggi.org/market/co2_auctions/results.