The Regional Greenhouse Gas Initiative (RGGI) announced today the results of the twenty-third quarterly auction of CO2 allowances under the regulatory program.
All of the allowances on offer, which include CO2 allowances from allocation year 2014 and earlier, were sold at the auction held on March 05, 2014. The clearing price was $4.00, above the the $3.00 clearing price for the last auction held in December. This marks the highest price at which a RGGI auction as cleared.
The March auction offered more than 18 million allowances from participating RGGI states. This auction also marked the first time allowances from the cost containment reserve were offered. Five million allowances from the reserve were offered.
The sale of allowances from the reserve was triggered when the clearing price for allowances initially on offer exceeded $4.00 per ton. Allowances from the reserve were subsequently sold, and the complete auction cleared $4.00. The 5 million allowances sold from the reserve is the total amount of reserve allowances available to be sold in 2014.
More details on the auction are in the table below:
| Allowances on Offer | 23,491,350 |
| Allowances Sold | 23,491,350 |
| Bid/Supply Ratio* | 2.5 |
| Bidders | 45 |
| Percent Compliance | 45% |
| Clearing Price | $4.00 |
*: bids were submitted to purchase 3.1 times the initial offering of allowances from RGGI states. The Bid/Supply Ratio was 2.5 after the sale of allowances from the reserve.
For more information on RGGI allowance markets or to transact in the market, contact our U.S. Carbon and Emissions Markets desks at: +1 914.323.0265 or +1 914.323.0255.