RGGI concludes third 2016 CO2 allowance auction
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The members of the Regional Greenhouse Gas Initiative (RGGI) on Friday released the results of the 33rd carbon dioxide (CO2) allowance auction, which took place on Wednesday.
The auction raised $67.7 million from the sale of nearly 15 million CO2 allowances, with a clearing price of $4.54 and bids for allowances ranging from $2.10 to $12.65 per allowance.
A CO2 allowance signifies a limited authorization for the emission of one short ton of CO2, and regulated power plants must possess sufficient allowances to cover their emissions for a given three-year control period. The current RGGI control period extends from Jan. 1, 2015, through Dec. 31, 2017.
“I am pleased that the market monitor has reported that Auction 33 was a competitive auction with no indication of market manipulation or collusion,” Maine Public Utilities Commissioner Carlisle McLean said. “RGGI continues to make strides toward a clean, low-cost electricity system while also providing revenue for each state to invest to their advantage.”
RGGI is a mandatory, market-based regulatory program created to reduce greenhouse gas pollution, and is composed of nine Northeastern and Mid-Atlantic member states – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The money generated by the allowance auctions is allocated among the member states and reinvested in accordance with state laws and rules.