CO2 Allowances Sold for $5.02 in 24th RGGI Auction First-in-the-Nation Program Demonstrates Effectiveness of Market-Based Carbon Pollution Reduction Programs

NEW YORK — The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based regulatory program to reduce greenhouse gas pollution, today announced the results of their 24^th auction of carbon dioxide (CO₂) allowances. 18,062,384 CO₂ allowances were sold at the auction at a clearing price of $5.02. Allowances sold represent 100 percent of the allowances offered for sale by the nine states. The auction generated $90.67 million for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including energy efficiency, renewable energy, direct bill assistance, and greenhouse gas abatement programs. Cumulative proceeds from all RGGI CO₂ allowance auctions currently total $1.75 billion dollars. According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 78 percent of CO₂ allowances sold in RGGI auctions since 2008. Additional details are available in the Market Monitor Report for Auction 24, available at http://www.rggi.org/docs/Auctions/24/Auction_24_Market_Monitor_Report.pdf.

“The release of EPA’s proposed carbon pollution rules has prompted many states to evaluate how they can cost-effectively reduce power-sector carbon pollution in as simple and transparent a manner as possible,” said Kelly Speakes-Backman, Commissioner of the Maryland Public Service Commission and Chair of the RGGI, Inc. Board of Directors. “With the RGGI states on pace to reduce our 2020 power-sector carbon emissions to levels about half that of 2005, the RGGI program has demonstrated a proven market-based model to do so.”

“Every auction reaffirms that RGGI’s market-based program is providing a clear market signal to reduce air pollution and drive the transition to cleaner, more efficient use of energy,” said Joe Martens, Commissioner of the New York State Department of Environmental Conservation and a Vice-Chair of the RGGI, Inc. Board of Directors. “While the cap limits emissions, Governor Cuomo is committed to reinvesting the auction proceeds in energy efficiency, clean energy and carbon reduction programs that enable the power sector to move to cleaner fuels, at the same time creating jobs and strengthening our economy.”
 
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 More data is also available at: http://www.rggi.org/market/co2_auctions/results.

About the Regional Greenhouse Gas Initiative

The Northeast and Mid-Atlantic states participating in the second RGGI control period (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) have implemented the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. The 2014 RGGI cap is 91 million short tons. The RGGI cap then declines 2.5 percent each year from 2015-2020.

RGGI is composed of individual CO₂ budget trading programs in each state, based on each state’s independent legal authority. A CO₂ allowance represents a limited authorization to emit one short ton of CO_2, as issued by a respective state. A regulated power plant must hold CO₂ allowances equal to its emissions to demonstrate compliance for each three-year control period. RGGI’s second control period began on January 1, 2012 and extends through December 31, 2014. For more information visit www.rggi.org.

The RGGI auctions are administered by RGGI, Inc. and run on an on-line platform provided by World Energy Solutions, Inc.

News Release and Market Monitor Report Now Available at:

http://www.rggi.org/docs/Auctions/24/PR060614_Auction24.pdf

CONTACT: Jason Brown, (212) 417-3179, jason.brown@rggi.org