The Regional Greenhouse Gas Initiative (RGGI) announced today the results of the thirty-second quarterly auction of CO2 allowances under the regulatory program.
All of the allowances on offer, which include CO2 allowances from allocation year 2016, were sold at the auction held on June 01, 2016. The clearing price was $4.53, which is the lowest clearing price since the 23rd Auction held in March 2014. 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 March auction offered more than 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 3.1:1. Compliance-oriented entities purchased 64% of the allowances on offer. More details on the auction are in the table below:
| Allowances on Offer | 15,089,652 |
| Allowances Sold | 15,089,652 |
| Bid/Supply Ratio | 3.1 |
| Bidders | 42 |
| Percent Compliance-Oriented | 64% |
| Clearing Price | $4.53 |
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.