2008/03/17 ENE Statement on the Regional Greenhouse Gas Initiative's (RGGI) Regional Auction of Carbon Allowances Press

For Immediate Release

March 17, 2008

Contact: Derek Murrow, 203-285-1946
                Meg Wilcox, 617-742-0064

ENE Statement on the Regional Greenhouse Gas Initiative's (RGGI) Design for the Regional Auction of Pollution Allowances

Environment Northeast (ENE), a regional research and advocacy organization, and official RGGI stakeholder, issued this statement in response to RGGI Inc.'s release of its design for the regional auction of carbon allowances. The nation's first mandatory carbon auction is scheduled for September 10, 2008.

"The states' auction design is robust, and should ensure a strong, consistent carbon market. The decision to auction nearly 100 percent of the pollution allowances, combined with the open auction design and reserve price, sets an important precedent for the national arena," said Derek Murrow, director of policy at Environment Northeast. "Overall, ENE supports the RGGI auction plan, and appreciates the state environmental commissioners' commitment to setting a reserve price and to potentially retiring unsold allowances prior to the second compliance period."

"ENE is committed to working with the RGGI states to ensure that the initiative yields a 10 percent reduction in emissions from the region's power plants over the next ten years. We are concerned that the initial RGGI cap, or emissions limit, is higher than the amount of CO2 currently emitted by the region's power plants. If this trend continues, retirement of allowances or an adjustment to the cap may be necessary. We are confident, however, that RGGI will be a success, and that adjustments can be made, if necessary, to ensure that this first-in-the-nation cap and trade program meets its emission reduction goals," added Murrow.

RGGI is the first mandatory carbon cap and trade program in the nation. It is an agreement between the governors of ten Northeast states to reduce greenhouse gas emissions from power plants 10 percent by 2019. The ten states include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont. As a region, the RGGI states are the 7th largest global warming polluter in the world. RGGI goes into effect in January 2009 and the states' decision to hold two auctions prior to the start of RGGI will help provide more certainty to generators and important price discovery to everyone involved with RGGI.

For the RGGI press release see: http://www.rggi.org/press.htm

For more information on RGGI and the cap level, see www.env-ne.org/RGGI

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