New York: Governor hails nation’s first global warming car and trade auction a success

Empire State News

ALBANY – Governor David Paterson Monday heralded the first auction for the Regional Greenhouse Gas Initiative (RGGI) as a success, setting an example for other states and the nation to follow. Governor Paterson opened the nation’s first-ever auction of carbon dioxide allowances when he and New Jersey Governor Jon Corzine rang the ceremonial bell at the New York Mercantile Exchange in Manhattan, launching the nation’s most serious initiative yet to reduce emissions of greenhouse gases. All of the 12.6 million allowances offered on September 25th were sold at a clearing price of $3.07 per allowance, generating nearly $40 million of funding for investment in energy efficiency, clean and renewable energy technologies and strategies that reduce carbon dioxide.

“The result of this auction sends a clear signal that supporting investment in improved energy efficiency and clean and renewable energy technologies is prudent and fiscally sound. Demand was high and fears of low-ball bidding did not come to pass. Instead, RGGI has used market forces to set a price on carbon,” said Paterson. “This is a strong indication that when New York participates in our first auction in December, it will also be a success. I hope our bold actions here will prove to be a turning point in the fight against global climate change.”

There were 59 entities from the energy, financial and environmental sectors bidding in the auction, indicating a robust interest in the first of many carbon dioxide allowance auctions. They sought 51.8 million allowances – four times the available supply for this first auction. Total revenue from the auction was $38.6 million, which will be distributed to the six RGGI states that offered allowances for sale during the first auction – Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont.

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