States Kick Off First U.S. Cap-And-Trade Auction

As part of a rising effort to limit greenhouse gas emissions and reduce
America’s dependence on
fossil fuels, a coalition of states last week kicked off America’s first
cap-and-trade agreement
and raised almost $39 million in proceeds.

The Regional Greenhouse
Gas Initiative
(RGGI) is the country’s first mandatory, market-based effort
to reduce greenhouse gas emissions. Ten Northeastern and
Mid-Atlantic states will cap and reduce carbon
dioxide emissions 10 percent by 2018.

Connecticut, Delaware, Maine, Maryland, Massachusetts, New
Hampshire, New Jersey, New York, Rhode Island,
and Vermont signed on and will cap carbon emissions from the power sector with a phased

States will sell carbon emission allowances via auctions
and invest the proceeds in consumer benefits. Funds will benefit energy
efficiency, renewable energy, and other clean energy technologies. RGGI will
help jumpstart our clean energy economy and create green collar jobs in each
signatory state.

Other regional regional
global warming initiatives
, such as the Western Climate Initiative
and the Midwestern Greenhouse Gas
Reduction Accord
, are also moving forward.

Published: October 1, 2008