Regional Emissions Trading Programs on the Move
Two regional climate initiatives that are common topics on this blog, the Regional Greenhouse Gas Initiative (RGGI) in the northeast U.S., and the Western Climate Initiative (WCI) in the west, continue to move forward with development of regional carbon trading markets.
RGGI is a bit further along. On July 24, it issued a formal notice giving potential bidders for emissions trading allowances 60 days to prepare for the first allowances auction. Six eastern states – Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont – will auction 12.5 million carbon dioxide allowances in September. Each allowance, which will permit the emission of one ton of carbon dioxide, is initially priced at $1.86, but RGGI expects the winning bid prices to be much higher. Bidders must pre-qualify through an online process. Read more about the auction process here.
Check back tomorrow for a report on what's happening at the WCI.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
