News Releases

September 14, 2009

Regional Greenhouse Gas Initiative Auctions Turn One Year Old

Montpelier, Vt. – The Douglas Administration marked the first anniversary of RGGI auctions by announcing that Vermont will receive $471,319 as its share of this week’s cap-and-trade carbon allowance sale.

“Vermont, along with our RGGI partners, continues to lead the country in combating climate change,” Governor Douglas said. “As we work for a cleaner environmental future, Vermonters will also see the economic benefits that come with new green jobs and lower energy bills.”

Vermont was the first state to join the Regional Greenhouse Gas Initiative (RGGI) as part of the Governor’s platform of climate change initiatives. In the first year since RGGI auctions began, the state has earned $3.2 million in five auctions. These proceeds will be invested in energy efficiency, renewable energy, technology development and other programs that return the value of the allowances to consumers.

Since last September more than 100 bidders, including electric utilities, manufacturers, financial institutions, environmental groups, and individuals have participated in the RGGI auctions for CO2 allowances. Trading volumes on national, regulated exchanges now match volumes in other established carbon markets, such as the Kyoto Clean Development Mechanism. And every major power plant in the 10-state RGGI region now reports quarterly CO2 emissions to the public in an emissions and allowance tracking system.

In the latest auction, the selling price for 2009 allowances was $2.19 while 2012 futures sold for $1.87.

About RGGI

The 10 Northeast and Mid-Atlantic states participating in RGGI are Vermont, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York and Rhode Island. RGGI states have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at current levels through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.

A CO2 allowance represents a limited authorization to emit one ton of CO2, as issued by a respective participating state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year control period.

For more information, turn to: www.rggi.org

Source: Office of the Governor
Last Updated at: September 14, 2009 16:33:44