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RGGI CO2 allowance prices edge higher; states release December auction documents

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RGGI CO2 allowance prices edge higher; states release December auction documents

Secondary market prices for Regional Greenhouse Gas Initiative carbon dioxide allowances were higher during the week ended Oct. 9.

The October 2018 vintage 2018 RGGI allowance contract was assessed in a bid-and-ask range of $5.10/ton to $5.22/ton, rising 7 cents from the start of October. As of Oct. 9, the December 2018 vintage 2018 RGGI allowance contract was quoted in a bid-and-offer spread of $5.15/ton to $5.25/ton, up 1 cent from the end of September.

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RGGI over-the-counter allowance prices were firm to higher just as the participating states released documents Oct. 9 for the program's next quarterly auction.

At the Dec. 5 RGGI auction, more than 13.3 million allowances will be placed on the auction block. A reserve price of $2.20/ton will be used and there will be a 10 million-allowance cost containment reserve available. The reserve will be accessed only if the interim clearing price exceeds the cost containment reserve trigger price of $10.25/ton for this year.

In RGGI's previous auction held in September, 100% of the more than 13.5 million CO2 allowances on offer were purchased at a clearing price of $4.50/ton, up 48 cents from the prior sale.

More information about the December auction will be provided during a webinar to be held at 2 p.m. ET on Oct. 11. Results of the latest RGGI auction will be released Dec. 7.

The RGGI is made up of Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New York, Rhode Island and Vermont. The participating states use a market-based cap-and-trade program to reduce greenhouse gas emissions from regional power plants, selling nearly all emissions allowances through auctions and investing proceeds in energy efficiency projects.

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Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices, as well as forwards and futures, visit our Commodities pages.