The Regional Greenhouse Gas Initiative (RGGI) held its latest quarterly auction for carbon allowances on Friday, clearing at $35 per ton of CO2. This is a record high for the program's primary auctions and a meaningful jump from March's price of $25 per ton. However, it remains well below secondary market prices that recently topped $50 per ton, and supporters are relieved the price did not go higher given intense political scrutiny over electricity costs. The 10-state cap-and-trade program covers power sector emissions in the Northeast. The $35 clearing price is unlikely to have a major impact on electricity bills, according to the article. The gap between auction prices and secondary market prices suggests traders expect tighter supply or higher demand in the future, which could push future auction prices upward.
