RGGI Auction 58 Clears at $12.99 | Emissions Watch Blog

Published December 9, 2022 | Tom Bausemer | Blog Postemissions-watch

The most recent RGGI quarterly auction (Auction 58) was held on December 7, 2022. The clearing price was $12.99/ton, three percent lower than the clearing price of $13.45/ton on September 7, 2022 (see Figure 1). Auction 58 represents the second consecutive auction with a clearing price lower than the previous auction, with both Auctions 57 and 58 clearing 3 percent below previous auction clearing prices. Prior to Auction 57 in September 2022, Auction 45 in September 2019 was last time that the clearing price had declined from the previous auction.

The clearing price fell short of the 2022 Cost Containment Reserve (CCR) trigger price of $13.91/ton.[1] The CCR provision is a mechanism that allows for the release of additional allowances when auction prices exceed the established price threshold (the trigger price).

[1] The CCR trigger price increases by 7 percent each year.

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Auction 58 Specifics

Bidding interest was strong in Auction 58 and 22,233,203 allowances were sold. Sixty-seven entities submitted bids and the quantity of allowances for which bids were submitted was 2.4 times the available supply. Sixty bidders secured allowances, with ten bidders purchasing 69 percent of all the available allowances. Figure 2 shows the breakdown of allowances sold to each of the successful bidders.

The Market Monitor report for Auction 58 indicated that following this auction, 58 percent of allowances in circulation were held by compliance entities and 42 percent were held by non-compliance entities. Figure 3 shows the percentage of allowances sold to compliance entities versus investors. In this auction, compliance entities purchased significantly more allowances than investors (71 percent versus 29 percent).

ESAI provides detailed analysis of the RGGI market, including an allowance price forecast, emissions projections, and updates on relevant policy and regulatory developments.

For more information on how to access this information, contact Tom Bausemer [email protected].

RGGI Auction 58 Figure 1
RGGI Auction 58 Figure 2
RGGI Auction 58 Figure 3

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