ALBANY, NY--Ten Northeastern and Mid-Atlantic states working together to reduce greenhouse gases from power plants will hold the first auction of carbon dioxide emissions allowances in the nation for a mandatory emissions reduction program on September 10, 2008.
The 10 states are participating in the Regional Greenhouse Gas Initiative, RGGI, a cap-and-trade program coupled with a market-based emissions trading system aimed at limiting climate warming.
The RGGI will set a limit or cap on the amount of carbon dioxide that can be emitted. Companies that need to increase their emissions must buy credits from those who pollute less. The transfer of allowances is referred to as a trade.
In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those that can easily reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest possible cost to society.
The first compliance period for the RGGI cap-and-trade program will begin January 1, 2009. The program will require electric power generators in participating states to reduce their carbon dioxide emissions.
At first, the program will work to reduce carbon dioxide emissions from power plants in the participating states, while maintaining energy affordability and reliability. After the cap-and-trade program for power plants is implemented, the states may consider expanding the program to other kinds of sources.
The 10 states participating in the RGGI, or Reggie, are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont.
The RGGI states have agreed to participate in quarterly uniform regional auctions for the allowances that each state will be offering for sale.
In conducting regional auctions, the RGGI states have come to agreement on a number of design elements.
Through a competitive process, RGGI, Inc. has selected several companies that will each deliver important services.
World Energy Solutions, Inc. was selected to provide services related to the design and implementation of a regional allowance auction.
Perrin Quarles Associates, Inc. was selected to provide services related to the development and implementation of an emissions and allowance tracking system.
ICF International was selected to provide services to support the implementation of the emissions offset component of the Regional Greenhouse Gas Initiative, including the development of model application and submittal documents and model guidance documents.
The Greenhouse Gas Management Institute was selected to provide services related to the development of an accreditation process for independent verifiers of offset projects.
These selections are tentative pending the outcome of a contract negotiation process and final agreement of contract terms and conditions.
ENS Newswire
www.ens-newswire.com
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