RGGI's second auction prices CO2 allowances at $3.38 per ton, up from $3.07

Prior posts have described the Regional Greenhouse Gas Initiative and the pricing of carbon dioxide allowances sold at its first auction. The RGGI has now held its second auction of CO2 allowances; each allowance permitted its holder to emit one ton of CO2. The price at the second auction was $3.38 per allowance; at the first auction, $3.07. All 31.5 million allowances offered were sold; once again, most of the allowances were purchased by electrical generators. The RGGI reported that demand was "robust" and sought 3.5 times the number of allowances on offer. Under the RGGI, emissions in the 10 states will be capped at 188 million tons per year through 2014; thereafter they will be reduced by 2.5% per year over the subsequent four years. More information about the RGGI and its programs can be found at http://rggi.org/home.