Strong demand shown for available offsets
The world’s largest carbon emissions allowance auction, to date, was held on Dec 17th, and was deemed a general success. The allowances were offered for sale by the Regional Greenhouse Gas Initiative (RGGI), the sellers were 10 Northeast and Mid-Atlantic states. The auction produced over 106 million dollars in proceeds, which will be used by the states, to invest in energy efficiency, as well as ,clean energy technology. Bidding was considered strong, in this, the second of the “pre-compliance” auctions (compliance obligations do not go into effect until Jan 1, 2009). Demand outpaced supply by 3.5x. The allowances went for $3.38/allowance, 31 cents more per allowance than the previous six state auction held on Sept. 25th. The next auction is set for March 18th.
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