RGGI states sell 15.2 mln CO2 permits for $5.41 each

Published 14:50 on March 13, 2015  /  Last updated at 21:55 on May 11, 2016  /  Americas, US  /  No Comments

RGGI states sold 15.2 million carbon allowances for $5.41 each at Wednesday’s auction, a sale that was almost 3 times subscribed, the market’s regulator said in an emailed statement on Friday.

RGGI states sold 15.2 million carbon allowances for $5.41 each at Wednesday’s auction, a sale that was almost 3 times subscribed, the market’s regulator said in an emailed statement on Friday.

There were 45 bidders and all the allowances were bought by power companies regulated under the northwest US market, despite speculators representing around a third of the allowances bid for.

The sale generated more than $82 million in revenue, which the states earmark for reinvestment in programmes to develop renewables, energy efficiency, emissions reductions and to subsidise electricity costs for poorer citizens.

The auction cleared below the $6 trigger price that would have released for sale a further 10 million units from the market’s Cost Containment Reserve. These units will be held in reserve at auctions for the remainder of the year.

By Ben Garside – ben@carbon-pulse.com