RGGI auction allowances beat reserve price

The first Regional Greenhouse Gas Initiative (RGGI) auction in the US on September 25 attracted 59 bidders, with allowances selling out for $3.07 each - more than $1 over the reserve price of $1.86.

Participants from the energy, financial and environmental sectors submitted bids for 12.5 million allowances (a limited permission to emit one ton of carbon dioxide) in the first quarterly auction held by RGGI ahead of the cap-and-trade scheme start date of January 1, 2009. Demand was four times suppl