The Regional Greenhouse Gas Initiative (RGGI) announced today the results of the thirty-fourth quarterly auction of CO2 allowances under the regulatory program.
All of the allowances on offer were sold at the auction held on December 7, 2016. The clearing price was $3.55, which is the lowest clearing price since the 22nd Auction held in December 2013. The clearing price was not high enough to trigger the sale of allowances from the RGGI Cost Containment Reserve. The 2016 CCR Trigger price is $8.00 per ton.
The December auction offered nearly 15 million allowances from participating RGGI states. Despite the low price relative to recent auctions, bidding interest was strong with bids exceeding supply by a ratio of 2.4:1. Compliance-oriented entities purchased 40% of the allowances on offer. More details on the auction are in the table below:
| Allowances on Offer | 14,791,315 |
| Allowances Sold | 14,791,315 |
| Bid/Supply Ratio | 2.4 |
| Bidders | 33 |
| Percent Compliance-Oriented | 40% |
| Clearing Price | $3.55 |
For more information on RGGI allowance markets or to transact in the market, contact our U.S. Carbon and Emissions Markets desks at: +1 914.323.0255.