The U.S. Environmental Protection Agency (EPA) announced at 12:00 pm ET today the results of their annual auction of SO2 allowances. EPA is mandated under the Title IV Acid Rain Program to auction each year 125,000 current year vintage allowances and 125,000 allowances with a vintage of 2019. This year all allowances sold, with the auction for spot vintage clearing at $0.56/allowance and the seven-year advance auction clearing $0.12/allowance.

While the Title IV SO2 program continues in force, the EPA has attempted to put in place additional and tighter regulations on SO2 emissions under the Cross-State Air Pollution Rule (CSAPR). This has driven down the price of Title IV SO2 allowances over the last year, and contributed to the lowest clearing price yet for allowances at the annual auction.

Further contributing to low Title IV SO2 prices is an overhang of regulatory uncertainty in U.S. emissions markets since a Federal court suspended the CSAPR program.

For current pricing or to transact in the market, please contact our Emissions Market Team at: +1 914.323.0255.