On March 18, 2009, members of the Regional Greenhouse Gas Initiative (RGGI) conducted their third allowance auction for the cap-and-trade program, and Potomac Economics (an independent organization that observes market proceedings) has confirmed that the auction took place in a fair and transparent manner. 31,513,765 allowances for the current compliance period (2009-2011) and 2,175,513 allowances for the second compliance period (2012-2015) were made available and sold at clearing prices of $3.51 and $3.05, respectively. The majority of revenues will be used for energy efficiency and renewable energy initiatives in the RGGI states.
Allowance auctions will continue to take place on a quarterly basis, with the next auction scheduled for June 17, 2009. Under RGGI, entities with a compliance obligation in the ten RGGI states will be required to hold allowances equivalent to their carbon dioxide (CO2) emissions, with each allowance representing one ton of CO2. Through the program, CO2 emissions will be reduced 10 percent by 2019.
Report and Press Release