By Ramona du Houx
June 14, 2021
NEW YORK — The eleven participating states in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based regulatory program to reduce greenhouse gas (GHG) pollution, today announced on June 4, 2021 the results of their 52nd auction of carbon dioxide (CO2) allowances. 22,987,719 CO2 allowances were sold at the auction at a clearing price of $7.97. Bids for the CO2 allowances ranged from $2.38 to $12.51 per allowance.
The auction generated $183,212,120 for states to reinvest in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs.
“We applaud the completion this week of another successful RGGI auction,” said Martin Suuberg, Commissioner of the Massachusetts Department of Environmental Protection and Chair of the RGGI, Inc. Board of Directors. “We are proud of RGGI’s long-term stability and success, which exemplify the benefits of continued regional cooperation. The $183 million in funds raised by the 52nd RGGI auction will allow participating states to invest in their communities and to advance energy efficiency and clean energy goals, while delivering benefits for consumers and public health.”
11.98 million cost containment reserve (CCR) allowances were also available for sale. The CCR is a fixed additional supply of allowances that are made available for sale if an auction’s interim clearing price exceeds a certain price level ($13.00 in 2021). None of the CCR allowances were sold in Auction 52.
In addition, 11.31 million emissions containment reserve (ECR) allowances were available for withholding. The ECR is a designated quantity of allowances to be withheld if an auction’s interim clearing price is below an established price level ($6.00 in 2021). No ECR allowances were withheld in Auction 52.
“RGGI continues to be a resounding environmental success story for bipartisan climate action and economic progress,” said Ben Grumbles, Secretary of the Maryland Department of the Environment and Vice Chair of the RGGI, Inc. Board of Directors. “RGGI’s regional market enables cost-effective emissions reductions, maximizes consumer benefits, and ensures a robust energy supply for the future.”
