NEW YORK, N.Y. — The Regional Greenhouse Gas Initiative market isn’t getting off the floor. Auction prices for carbon allowances in the northeastern compact have been at or below the minimum reserve for two full years, and the number of bidders participating in RGGI has dropped to just a quarter of what it used to be.
The latest quarterly auction, held last week, sold just 53 percent of the available allowances put up for sale by the nine states that remain in RGGI. Bidders bought 20.9 million of the 36.4 million allowances on the auction block at the reserve price of $1.93 each, netting more than $40 million in revenue.
Since the program’s inception in 2008, RGGI has generated more than $1 billion from selling the rights to emit carbon dioxide from fossil-fueled power plants, the cost of which is borne by ratepayers across the Northeast.