All of the 31,505,898 carbon dioxide (CO2) emissions allowances offered for sale on Dec. 17, 2008, by the Regional Greenhouse Gas Initiative (RGGI) were sold at a clearing price of $3.38 per allowance.
RGGI Inc. reported that 69 participants from the energy, financial and environmental sectors took part in the bidding, indicating continued strong performance for RGGI CO2 allowance auctions. The demand for the allowances was robust, at 3.5 times available supply.
The approximately $106.5 million in proceeds produced from this auction will be distributed to all 10 RGGI states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont) in proportion to the CO2 allowances offered for sale by each state. The states will invest those funds in energy efficiency and clean energy technologies.
In conformity with the notice for Auction 2, the RGGI participating states will release further auction information on Jan. 6, 2009, after financial settlement and transfer of CO2 allowances is completed. The post-settlement auction report by the market monitor will contain aggregate information, including the dispersion of projected demand, the dispersion of bids and a summary of bid prices.
The next allowance auction is set for March 18, 2009.
SOURCE: Regional Greenhouse Gas Initiative