RGGI Looking To Grab $100M In Carbon Credit Auction Tomorrow

The alliance of U.S. carbon trading states know as RGGI hopes to raise $100 million when it auctions off 33.7 million carbon credits for $3 bucks a pop tomorrow. At this low price, speculators might want to get in on the action.

If Obama implements a cap and trade system, as he keeps promising he will, the initial price for the carbon credits are estimated to be $15 at the low end of the spectrum. Purchasing some credits tomorrow and holding them could result in a big pay off down the road. The gamble: Obama might not get his system passed and he might not incorporate these credits. The latter seems highly unlikely.

The real thing that would hold back speculators is that nobody’s got any money these days. Certainly not enough money to blow placing it all on black.

This auction will present a windfall for the 10 states that participate in RGGI, which are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.