Carbon Permits Sell for Minimum Before New Jersey Exits RGGI - Bloomberg

Carbon-dioxide emissions allowances in the U.S. Northeast were auctioned for $1.89, the minimum allowable bid, as New Jersey prepared to exit the 10-state regional program. The quarterly auction sold 27.3 million, or 63 percent, of the available 43 million allowances, the fifth-lowest since the program began in 2008, the Regional Greenhouse Gas Initiative said today on its website. The results bolster New Jersey’s decision to exit RGGI at the end of the year, said Larry Hajna, a spokesman for the state’s Department of Environmental Protection. Republican Governor Chris Christie in May called RGGI “a failure” because permits that were initially projected to cost $20 to $30 never sold for more than $3.51. “Climate change is real, but RGGI is not working,” Hajna said in an e-mail. “Today’s auction results affirm the fact that supply of allowances continues to outweigh demand.” The auction, held Dec. 7, generated $51.5 million for the states from power producers. Each allowance gives a company the right to emit one ton of carbon dioxide in a cap-and-trade program that includes the six New England states, New Jersey, New York, Delaware and Maryland.