The Regional Greenhouse Gas Initiative (RGGI) announced today the results of the eleventh quarterly auction of CO2 allowances under the regulatory program. All of the approximately 41.9 million allowances on offer from the current control period (2009-2011) were sold at the auction, which was held on March 9, 2011.
The auction of allowances for the first RGGI compliance period (2009-2011) sold at the clearing price of $1.89, which was the auction reserve price. [Note: the auction reserve price was raised this year from $1.86 to $1.89.] For reference, Vintage 2010 allowances closed yesterday at $1.95.
Thirty-six entities submitted bids to purchase 1.1 times the available supply. By comparison, only 57% of the current control period allowances offered at the last RGGI auction in December were sold. This was the first quarterly auction since the seventh auction held in March 2010 in which all current control period allowances on offer were sold.
The auction also offered for sale allowances for the future control period (2012-2014). All of the approximately 1.2 million allowances for this period were sold. The clearing price for future control period allowances was also the auction reserve price of $1.89.
Seven entities submitted bids to purchase 1.4 times the available supply. By comparison, only 55% of the future control period allowances offered at the last RGGI auction in December were sold. This was the first quarterly auction since the fifth auction held in September 2010 in which all future control period allowances on offer were sold.
The auction of current control period allowances saw a decrease in bidders, with 36 entities participating compared to 38 bidders in December. However, there was an increase in participation in the future control period auction, with seven bidders compared to four in the last auction.
Table 1
| Auction 11 Stats | Vintage 2009-2011 | Vintage 2012-2014 |
| Allowances | 41,995,813 | 2,144,710 |
| Bidders | 36 | 7 |
| Percent Compliance | 85% | 56% |
| Bid/Supply Ratio | 1.1 | 1.4 |
| Clearing Price | $1.89 |
$1.89 |
For a complete view of past RGGI Auction results, click the links below.
Results from the 10th RGGI Auction
For more information on RGGI allowance markets or to transact in the market, contact our U.S. Emissions Markets desk at: +1 914.323.0255 or emissiondesk@evomarkets.com.