Northeast Greenhouse Gas Allowance Auction Raises US$106.5 Million
The second auction of allowances for greenhouse gas emissions held by the Regional Greenhouse Gas Initiative (RGGI) was a robust auction that yielded US$106.5 million for use by the 10 RGGI states. While some feared that the economic situation would depress the prices for the emission allowances, the price levels increased, selling at a clearing price of US$3.38 per allowance--10% higher than the clearing price of US$3.07 per allowance that was reached in the first auction, held in September 2008.
RGGI is the first market-based, mandatory cap-and-trade program for greenhouse gas emissions in the US. Ten Northeastern and Mid-Atlantic states will cap and then reduce CO2 emissions from the power sector 10% by 2018. States will sell emission allowances through auctions and invest proceeds in consumer benefits: energy efficiency, renewable energy, and other clean energy technologies.
For more information: WWW.RGGI.ORG