Global Warming Campaign News

Auction Goes Smoothly Despite Scare Tactics by Opponents

Baltimore – Officials at the Regional Greenhouse Gas Initiative revealed the results this morning of last week’s historic auction of global warming pollution credits.  Twelve million tons worth of pollution credits were sold at a price of $3.07 per ton.  The proceeds will be used by states to promote clean energy.

“An enormous amount of work has gone into creating this program, and it’s great to see this successful outcome,” said Brad Heavner, state director of Environment Maryland Research & Policy Center. “The scare-mongers predicting that speculators would send prices spiraling out of control have been proven wrong.”

Maryland sold 5.3 million allowances in this first auction, resulting in $16 million in revenue. The Maryland Energy Administration intends to use the revenue for measures that will lower costs for consumers, such as helping citizens and businesses save energy and promoting renewable energy. These measures will also help reduce the state’s global warming pollution and create jobs.

“The state has never been lacking in good ideas for how to promote clean energy, but it just hasn’t had the money to put them into widespread action,” said Heavner.  “Until now.”

The Regional Greenhouse Gas Initiative (RGGI) is a collaboration of ten Northeastern and Mid-Atlantic states that have united to establish a program to limit carbon dioxide emissions from power plants to 10 percent below current levels by 2019.

The RGGI program is most noteworthy because it is the first program to auction the pollution permits, rather than give them to polluters for free based on their past emissions as has been done in other programs. All of the states participating in the program have committed to auctioning all or most of their pollution allowances. Auctions will be held quarterly, with the next one scheduled for December 17.

Maryland participated more heavily in this first auction than any other state, which seems to have been a good move since the price was higher than the minimum bid price of $1.86.  Many observers expect the price to settle down to the minimum once initial jitters and excitement have cooled down.

An independent market monitor for the auction, Potomac Economics, found no concerns or irregularities in the auction process or results.