Friday, December 4, 2009

RGGI States Complete Sixth Successful CO2 Auction

2009 Vintage Allowances Sold at $2.05

2012 Vintage Allowances Sold at $1.86

Proceeds Support Weatherization of Buildings and Other Consumer Benefit Programs

The states participating in the Regional Greenhouse Gas Initiative (RGGI) today announced the results of the sixth regional auction of carbon dioxide (CO2) allowances, held Wednesday, December 2nd. The auction yielded $61,587,120.90, increasing the total amount of proceeds from RGGI auctions to more than $494.4 million. All of the 28,591,698 allowances for the 2009 vintage offered in Wednesday’s auction sold at a price of $2.05.

In a parallel offering, the RGGI states also auctioned allowances for the second three-year control period beginning January 1, 2012. A total of 1,599,000 of the 2,172,540 allowances for the 2012 vintage sold at a price of $1.86. Unsold allowances for the 2012 vintage year may be sold in future auctions according to each state’s regulations.

RGGI is showing that cap-and-trade works: six successful auctions, more than 100 bidders and $494 million for green energy and green jobs. States have chosen to auction nearly all allowances and to invest the proceeds in a variety of programs that reduce emissions, save consumers money, create jobs, and build the clean energy economy. The approach of winter highlights investments states are making to improve heating energy efficiency in homes and businesses. Across the region states are investing in programs to upgrade inefficient heating equipment, improve insulation, and replace old windows and doors.

To learn more about how each state is investing RGGI auction proceeds, please visit:

Additional details about RGGI Auction 6 may be found in the Market Monitor Report for Auction 6

About the Regional Greenhouse Gas Initiative

The 10 Northeast and Mid-Atlantic states participating in RGGI (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) have designed and implemented the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at 188 million short tons per year through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent. A CO2 allowance represents a limited authorization to emit one ton of CO2, as issued by a respective participating state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year control period.

The first control period for fossil fuel-fired electric generators under each state’s CO2 Budget Trading Program took effect on January 1, 2009 and extends through December 31, 2011. Allowances issued by any participating state are usable across all state programs, so that the ten individual state CO2 Budget Trading Programs, in aggregate, form one regional compliance market for CO2 emissions.

RGGI, Inc. was created to provide technical and administrative services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c) 3 nonprofit organization. The RGGI auctions are administered by RGGI, Inc. and run on an on-line platform provided by World Energy Solutions, Inc. (TSX: XWE).

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