RGGI monitor issues secondary market report

No anti-competitive conduct in the RGGI CO2 allowance secondary market

Share | Print PDF Print

The independent market monitor for the RGGI market continues to find no evidence of anti-competitive conduct in the RGGI CO2 allowance secondary market, according to the Report on the Secondary Market for RGGI CO2 Allowances: Second Quarter 2014, released today.

Prepared by Potomac Economics, the report found the average transfer price of RGGI CO2 allowances in COATS during the second quarter of 2014 was $4.51, approximately 17 percent higher than in the prior quarter and 33 percent higher than the second quarter of 2013.  The clearing price in Auction 24, held on June 4 was $5.02, which was consistent with the rise in secondary market prices leading up to the auction.

The Report on the Secondary Market for RGGI CO2 Allowances: Second Quarter 2014 is part of Potomac’s ongoing monitoring of the RGGI auctions and the secondary markets where CO2 allowances trade. The report, which addresses the period from April to June 2014, is based on data reported to the Commodity Futures Trading Commission (CFTC) and the Intercontinental Exchange (ICE), as well as other data.

About Regional Greenhouse Gas Initiative (RGGI)

The Northeast and Mid-Atlantic states participating in the second RGGI control period (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) have implemented the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. The 2014 RGGI cap is 91 million short tons. The RGGI cap then declines 2.5 percent each year from 2015-2020.

toggle footer display