Michael Giberson
The results from the first RGGI auction have been announced, coming in louder than a whimper, but softer than a bang. As the WSJ Environmental Capital blog reports, “Demand was actually pretty strong.” About 50 million units were bid upon, while just 12.5 million were offered. The demand pushed the clearing price to $3.07 a ton, higher than the $1.86 a ton minimum bid.
From the RGGI results page:
| Auction Number |
Auction Format |
Allocation Year |
Quantity Offered |
Quantity Sold |
Clearing Price |
Reports |
| CO2 Allowance Auction 1 9/25/2008 |
Sealed Bid, Uniform Price |
2009 | 12,565,387 | 12,565,387 | $3.07 | |
| CO2 Allowance Auction 2.1 12/17/2008 |
TBD | 2009 | TBD | TBD | TBD | |
| CO2 Allowance Auction 2.2 12/17/2008 |
TBD | 2012 | TBD | TBD | TBD |
The market monitor reported, “We observed the auction as it occurred and have completed our review and analysis of its results. Based on our monitoring of participant conduct in the auction, we find no material evidence of collusion or manipulation by bidders.”
As Environmental Capital notes, the $3.07 a ton price is substantially lower than prices in Europe, but as we noted here last week, “I can imagine that the program designers were interested in not beginning with a bang.”