RGGI Auction 60 – Clearing Price of $12.73/ton | Emissions Watch Blog
June 9, 2023 | Tom Bausemer | Blog Post | emissions-watch | RGGI
Clearing Price of $12.73/ton Marks a 1.8% Increase Over Previous Auction
The most recent RGGI quarterly auction (Auction 60) was held on June 7. The clearing price was $12.73/ton, 1.8% higher than the clearing price of $12.50/ton on March 8 (see Figure 1). Auction 60 represents the first auction with a clearing price higher than the previous auction since Auction 56 in June 2022, reversing the recent trend of declining clearing prices.
The clearing price fell short of the 2023 Cost Containment Reserve (CCR) trigger price of $14.88/ton. (See Figure 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).
Auction 60 Specifics
Bidding interest was strong in Auction 60 and 22,026,639 allowances were sold. Fifty-one entities submitted bids and the quantity of allowances for which bids were submitted was 1.9 times the available supply. Forty-nine bidders secured allowances, with ten bidders purchasing 73 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 60 indicated that following this auction, 60 percent of allowances in circulation were held by compliance entities and 40 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 more allowances than investors (63 percent versus 37 percent). However, compliance entities purchased a smaller share of allowances relative to the previous auction, in which they purchased 82 percent of allowances.
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