RGGI Auction 61 – Clearing Prices Up Nearly 9% | Emissions Watch Blog

September 8, 2023 | Tom Bausemer | Blog Postemissions-watchRGGI

Clearing Price of $13.85/ton Marks a 8.8% Increase Over Previous Auction

The most recent RGGI quarterly auction (Auction 61) was held on September 6, 2023. The clearing price was $13.85/ton, 8.8% higher than the clearing price of $12.73/ton on June 7, 2023 (see Figure 1). Auction 61 represents the largest increase in clearing price in percentage terms since Auction 54 in December 2021.

The clearing price fell short of the 2023 Cost Containment Reserve (CCR) trigger price of $14.88/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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RGGI Auction 61 Specifics

Bidding interest was strong in Auction 61 and 21,948,358 allowances were sold. Fifty-eight entities submitted bids and the quantity of allowances for which bids were submitted was 2.2 times the available supply. Fifty bidders secured allowances, with ten bidders purchasing 61 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 61 indicated that following this auction, 62% of allowances in circulation were held by compliance entities and 38% 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 (64 percent versus 36 percent). This is almost identical to the last auction, in which compliance entities purchased 63% of allowances.

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ESAI provides a 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 Brian Doyle at [email protected]

Figure 1 RGGI Clearing & Reserve Prices, 2018 – 2023 (YTD)
Figure 2 Allowances Awarded by Bidder – September 6, 2023 RGGI Auction
Figure 3 Percentage of RGGI Allowances Sold to Compliance Entities vs. Investors, 2020 – 2023 (YTD)

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