Dec

5

RGGI States Complete Sixth Successful CO2 Auction

Filed Under RGGI, Regional Greenhouse Gas Initiative, US Carbon Market, US Carbon Trading 

The states participating in the Regional Greenhouse Gas Initiative (RGGI) today announced the results of the sixth regional auction of carbon dioxide (CO2) allowances, held Wednesday, December 2nd. The auction yielded $61,587,120.90, increasing the total amount of proceeds from RGGI auctions to more than $494.4 million.

All of the 28,591,698 allowances for the 2009 vintage offered in Wednesday’s auction sold at a price of $2.05. Unsold allowances for the 2012 vintage year may be sold in future auctions according to each state’s regulations.

“RGGI auctions continue to run like clockwork,” said David Littell, Commissioner of the Maine Department of Environmental Protection and Chair of the Regional Greenhouse Gas Initiative, Inc. Board of Directors. “Six successful auctions, more than 100 bidders and $494 million for green energy and green jobs – RGGI is showing that cap-and-trade works.”


States have chosen to auction nearly all allowances and to invest the proceeds in a variety of programs that reduce emissions, save consumers money, create jobs, and build the clean energy economy. The approach of winter highlights investments states are making to improve heating energy efficiency in homes and businesses. Across the region states are investing in programs to upgrade inefficient heating equipment, improve insulation, and replace old windows and doors.

“Investments in weatherization and similar energy efficiency programs are a win-win-win for consumers across the region,” said Laurie Burt, Commissioner of the Massachusetts Department of Environmental Protection. “These programs decrease consumer energy costs, make our energy use smarter in the long-term and create new jobs and businesses in the clean energy economy.”
Investments in energy efficiency result in immediate benefits for consumers. For example, Massachusetts recently deployed $4 million in RGGI allowance proceeds to replace over 1,300 air and water heating units in low-income households. The state estimates that the program reduced annual household heating energy costs by 25 percent, equivalent to about $500 in energy savings per household. Comparable programs in Connecticut, New Hampshire and Maine have produced similar benefits. said Collin P. O’Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control. “For families, a weatherized home can mean more efficient heating, better lighting, and an overall healthier home environment.”

State weatherization and retrofitting programs also create long-term economic benefits for the region, including new job opportunities installing efficiency technologies. In Massachusetts, the investment of $371 million in energy efficiency will add nearly $1.4 billion to the gross state product. In New York, the investment of $112 million in building sector retrofits and training, when leveraged with private capital, is projected to create thousands of family-sustaining jobs over five years.

“When we invest in weatherization and energy efficiency, we invest in a better economic future and the fight against climate change,” said Pete Grannis, Commissioner of the New York State Department of Environmental Conservation. “Retrofitting homes reduces our carbon footprint and creates new jobs for contractors, energy auditors, architects and engineers in the emerging energy technology industry.”

To learn more about how each state is investing RGGI auction proceeds, please visit: http://www.rggi.org/states/program_investments.