July 14, 2008
CO2 allowance auctions will help drive innovation, produce cleaner energy
MONTPELIER – Governor Jim Douglas today announced that Vermont and the Regional Greenhouse Gas Initiative have released preliminary guidelines for the nation’s first-ever carbon credit auction on Sept. 25.
The guidelines outline requirements and preparations bidders must follow to be ready to purchase their share of nearly 12.5 million carbon emission allowances at the first auction.
“The stage is set for Vermont and nine other states to take unprecedented action and lead the nation on a path of economic and environmental security through reduced use of fossil fuels like oil,” Douglas said. “This is an important milestone as Vermonters struggle under the burden of the federal government’s failure to lead on fundamental energy and environmental issues.”
The Sept. 25 auction is expected to include allowances from Vermont, Connecticut, Maine, Massachusetts, Maryland and Rhode Island. Other RGGI states will offer allowances for sale in future auctions as they complete their necessary rule-making procedures.
RGGI is the first program in the country to cap and then reduce CO2 emissions from power plants. Participating states have agreed to stabilize CO2 emissions from 2009 to 2014, and then gradually reduce emissions beginning in 2015. Emissions from the power sector for RGGI states totals about 7 percent of the U.S. power sector emissions, according to the U.S. Energy Information Agency.
The market-based mandatory program will cost-effectively reduce the pollution that is causing global warming while investing in efficient technology, Douglas said. “The result for Vermonters is the potential for new green jobs and cleaner energy.”
The materials released today, online at www.rggi.org, provide a preview of auction applications and procedures for bidders participating in the first of two early auctions to be held this year.
Source: Office of the Governor
Last Updated at: July 14, 2008 10:16:01