RGGI Announces First U.S. Carbon Auction

The Regional Greenhouse Gas Initiative (RGGI), the nation's first carbon cap and trade program, released the details of its plan for a regional auction of allowances. RGGI is an agreement among 10 Northeast states to reduce greenhouse gas emissions from power plants. As of January 2009, power plants over 25 Megawatts will be required to hold an allowance for every ton of carbon dioxide emitted.

The first auction will take place on September 10, 2008, with a second is scheduled for December 17, 2008. A minimum reserve price of $1.86 per allowance, or ton, was set. Unsold allowances may be witheld after 2012.

For more information see:

 RGGI's  press release

Article on Bloomberg.com  Northeast States Will Hold First Carbon Auction

Hartford Courant article, Carbon Dioxide Up For Sale 

ENE Statement on RGGI's Auction Plan