 |
|||||
|
|||||
Regional Carbon Prices Hit Low Depressed power demand and low prices for natural gas have caused the price for carbon allowances under the Regional Greenhouse Gas Initiative to decrease to $2.05 a ton in December. While still higher than the lowest permitted level of $1.86 a ton, the figure represents the allowances’ lowest price yet, down from a peak in March.
The RGGI caps greenhouse emissions from power plants and auctions off emission allowances so that companies can trade them in accordance with their needs. The regional association’s member states, ten in all, raised $62 million in the December auction.
The program is a year old and has raised about $500 million to date. Funds obtained from auctioning allowances are supposed to be earmarked for clean energy and efficiency programs.
December’s auction did see more participation by buyers who did not represent power plants. The RGGI is oversupplied with allowances this year, since even with the regional caps, about 40 million tons more allowances are available than are needed to account for power plant emissions. |
|||||
|
|||||
To sponsor Western Energy News, please contact WEI at 503 231-1994.
|
|||||
Copyright © 2009. Reuse of this publication or its contents is allowed with credit to Western Energy Institute. |
|||||