Auction brings in $85 million from CO2 allowances

The Regional Greenhouse Gas Initiative (RGGI), a market-based regulatory program comprising nine Northeastern and Mid-Atlantic states that seek to reduce greenhouse gas pollution, raised $85 million from its auction of carbon dioxide allowances on June 3.

“Today’s results demonstrate RGGI’s success as a market-based program to reduce carbon pollution,” Vice-Chair of the RGGI Board of Directors Joe Martens, who is also the commissioner of the New York State Department of Environmental Conservation, said. “The program updates implemented in 2014 have strengthened the market, and it continues to function competitively after more than six years of cost-effective operation.”

The auction, which was the 28th since the program’s inception and the second of 2015, did not require the sale of cost containment reserves (CCRs), 10 million of which are available for the year in case of price levels breaching $6 per allowance. The 10 million CCR allowances for the year will remain available for future auctions. With more than 15 million allowances sold at $5.50, the June 3 auction pushed the cumulative earnings of the program to $2.1 billion.

“The proceeds generated by this auction can be reinvested in programs that benefit energy consumers in the RGGI states,” RGGI Board of Directors Chair and Connecticut Department of Energy and Environmental Protection Deputy Commissioner for Energy Katie Dykes said. “Past investments of RGGI auction proceeds have saved consumers money on their electric bills while reducing harmful pollution and encouraging clean energy innovation.”