RGGI Auction Clears Record $35 a Ton, Raising $642 Million for 10 States
Updated
Updated · POLITICO · Jun 5
RGGI Auction Clears Record $35 a Ton, Raising $642 Million for 10 States
1 articles · Updated · POLITICO · Jun 5
Summary
$35 per ton was the clearing price in the latest Regional Greenhouse Gas Initiative auction, a record high for the Northeast power-sector carbon market and up from $25 in March.
Virginia's planned July reentry, stronger fossil-fuel use during winter storms and pressure on renewables lifted allowance demand, but the result still came in well below recent secondary-market prices above $50.
$642 million from the auction will flow to the 10 participating states for ratepayer relief and energy-efficiency programs that supporters say can cut lifetime energy bills by multiples of the upfront cost.
The outcome eased immediate political pressure on the cap-and-trade program by avoiding a sharper jump in power costs, though analysts warned prices in the $50-$100 range later this year would revive concerns.