RGGI Carbon Allowance Price Climbs 40 Percent in Latest Auction

The Regional Greenhouse Gas Initiative participating states on June 5 announced results from the program’s 72nd carbon allowance auction, which cleared at $35 per allowance, generating approximately $642 million for reinvestment in energy efficiency, renewable energy, electrification, greenhouse gas reduction, and customer assistance programs across the region. A total of 18.3 million allowances were sold during the auction.

The auction cleared more than 40 percent higher than the previous sale in March 2026, when allowances settled at $24.99. The increase occurred despite fewer allowances being available for sale. During the prior auction, all available Cost Containment Reserve, or CCR, allowances were released after prices exceeded the program’s trigger threshold, adding additional supply to the market. No reserve allowances were available in the latest auction as that supply had already been exhausted. While proceeds were slightly below the approximately $652 million generated in the previous auction, the two sales collectively raised nearly $1.3 billion for participating states.

The results come as states prepare to implement program reforms approved in July 2025 that will take effect in January 2027. The changes are intended to strengthen market stability and expand cost containment measures by increasing allowance availability during periods of elevated prices. Additional CCR allowances are scheduled to become available beginning with the September 2026 auction.

Participating states also announced plans to begin a scoping process to evaluate targeted measures aimed at maintaining the program’s long-term benefits, supporting consumer affordability, and ensuring reliable electricity service. The review is expected to include analysis of Virginia’s return to the program and potential opportunities to facilitate the state’s reintegration into the regional carbon market.

Virginia is scheduled to resume participation on July 1, 2026, and is expected to provide additional allowance supply during the final two auctions of the year, including both standard allowances and CCR allowances.

Participating states reported that investments supported by auction proceeds have benefited more than 8 million households and 400,000 businesses and are expected to generate more than $20 billion in cumulative energy savings across the region.