RGGI states will sell 14.8 million CO2 allowances in an auction on Mar. 9 that will trigger the market’s Cost Containment Reserve (CCR) if the price clears above $8.00, the regulator said on Monday.
The vintage 2015 futures for Dec-16 delivery on ICE settled at $8.10 on Friday, notching a 40-cent or 5.2% gain in the first week of 2016.
The rise increased the odds that the CCR trigger price will be hit in the March sale, two quarters earlier than when the reserve was emptied in 2015.
Analysts predict RGGI prices will reach $10.80 by the end of 2020.
All four RGGI auctions this year will have a reserve price of $2.10.
The auction notice for potential applicants has been posted online.
By Ben Garside – ben@carbon-pulse.com
