RGGI’s Latest Carbon Auction Raises $117M
According to results from the Regional Greenhouse Gas Initiative, all of the 31,513,765 allowances for the 2009 vintage sold at a clearing price of $3.51 per allowance. The auction was the first since compliance obligations under RGGI’s first three-year control period began January 1, 2009.
The RGGI states also auctioned allowances for the second three-year control period beginning in 2012, providing a first-look at future market prices for RGGI CO2 allowances. The 2,175,513 allowances for the 2012 vintage cleared at a price of $3.05 per allowance. By the end of 2009, the RGGI states will have offered for sale 5% of the total supply of 2012 vintage allowances.
The auction raised $117,248,629.80.
Fifty separate entities submitted bids to purchase 2.5 times the available supply of 2009 allowances, and 20 entities submitted bids to purchase 2.3 times the available supply of 2012 allowances. A total of 42 entities won allowances for the 2009 offering, in which bid prices ranged from $1.86 (the minimum bid allowed) to
$10.00. Twelve bidders won allowances for the 2012 offering, in which bid prices ranged from $1.86 to $4.40.
Compliance entities and their affiliates won 78 percent of the 2009 allowances and 93 percent of 2012 allowances. The high percentage of allowances won by compliance entities at auction continues a trend established in the two “pre-compliance” auctions held in September and December 2008 in which compliance
entities won 80 percent and 85 percent of allowances, respectively.
The complete Auction Report for the RGGI CO2 Allowance Auction 3 is available here.
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