The Regional Greenhouse Gas Initiative (RGGI) announced today the results of the twelfth quarterly auction of CO2 allowances under the regulatory program. Only 30% of the approximately 42 million allowances on offer from the current control period (2009-2011) were sold at the auction, which was held on June 8, 2011.
This was the first auction of RGGI allowances since New Jersey announced its intention to leave the program beginning in January 2012.
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. For reference, we are currently seeing offers for 2011 vintage RGGI allowances at $1.89, with bids around $1.85.
The auction of current control period allowances saw a decrease in bidders compared with the last auction, with 25 entities participating compared to 36 bidders in March.
The auction also offered for sale allowances for the future control period (2012-2014). This portion of the auction did not include allowances from New Jersey, as the state will not participate in the program from 2012. Five bidders purchased 51% of the approximately 1.9 million allowances on offer for this auction. By comparison, seven entities submitted bids to purchase 1.4 times the available supply of future control period allowances in the last auction held in March 2011.
The clearing price for future control period allowances for the auction held yesterday was the auction reserve price of $1.89.
Table 1
| Auction 12 Stats | Vintage 2009-2011 | Vintage 2012-2014 |
| Allowances on Offer | 42,034,184 | 1,864,952 |
| Allowances Sold | 12,537,000 | 943,000 |
| Bid/Supply Ratio | .30 | .51 |
| Bidders | 25 | 5 |
| Percent Compliance | 91% | 100% |
| Clearing Price | $1.89 |
$1.89 |
For a complete view of past RGGI Auction results, click the links below.
Results from 11th RGGI Auction
Results from 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.