Vermont earns $620,000 in first quarterly sale of carbon credits

first_imgGovernor announces results of RGGI auction: Vermont earns $620,000 in first quarterly saleTotal earnings could exceed $3 million in first year; Funds used to reduce energy bills and create ‘green’ jobsMONTPELIER – (Septeber 29, 2008) Governor Jim Douglas today released the Vermont results of the first auction of carbon dioxide (CO2) emission allowances in North America, saying Vermont sold all its 202,000 allowances at a clearing price of $3.07 per allowance.”This is outstanding news for Vermont,” the Governor said. “This will help us create more and better paying green tech jobs, lower Vermonters’ energy bills and reduce greenhouse gas emissions.”Vermont will auction 1.2 million carbon allowances each year, and at current prices, could earn almost $3.7 million annually to fund energy efficiency and green economy jobs.”I am very proud that we were the first state to sign on to the Regional Greenhouse Gas Initiative (RGGI),” Douglas said. “RGGI is a crucial piece of the climate change puzzle because it allows Vermont to lower its carbon footprint, tackle energy costs and stimulate our economy.”Six states – Vermont, Connecticut, Maine, Maryland, Massachusetts and Rhode Island – auctioned a combined 12.5 million allowances for $38.5 million in the Sept. 25 sale. The Regional Greenhouse Gas Initiative, or RGGI, reported that 59 participants from the energy financial and environmental sectors took part in the first-in-the-nation auction, indicating a strong start in the first of many CO2 allowance auctions.Vermont will invest those funds in energy efficiency and renewable energy technologies and programs to benefit energy consumers, including research and technology to curb carbon emissions. The Public Service Board will appoint trustees to oversee the RGGI proceeds. The Department of Public Service will make recommendations to the Board and its trustees for programs and activities such as weatherization, pursuing renewable energy and improving energy efficiency.”The 10 RGGI states have demonstrated great leadership in coming together to offer this first carbon cap-and-trade system, and the smooth completion of the initial auction is proof that the RGGI partners are leading the nation in the battle against climate change,” said Jonathan Schrag, Executive Director of the Regional Greenhouse Gas Initiative, Inc. “RGGI’s example shows that an open and competitive carbon market can be implemented elsewhere.””The first RGGI auction has successfully used market forces to set a price on carbon, and this will send a clear market signal to support the investment in clean energy technologies,” Schrag added.Any CO2 allowances purchased at the first auction can be used by a regulated facility for compliance in any of the RGGI states, even if that state did not offer allowances in the first auction.The next allowance auction is set for December 17, 2008. These early auctions, combined with the others being held in the first compliance period, will ensure an ample opportunity for bidders to obtain the allowances they will need for compliance across the entire 10-state region. RGGI intends to hold quarterly auctions during the first RGGI three-year compliance period, which will be from January 1, 2009 to December 31, 2011.About the Regional Greenhouse Gas InitiativeThe 10 Northeast and Mid-Atlantic states participating in RGGI have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. The states have committed to cap and then reduce the amount of CO2 that power plants in their region are allowed to emit, limiting the region’s total contribution to atmospheric greenhouse gas levels.Under the RGGI process, the 10 participating states will stabilize power sector CO2 emissions at the capped level through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.The 10 states participating in RGGI are Vermont, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York and Rhode Island.For more information about RGGI, turn to: is external)last_img