RGGI To Hold First Auction of CO2 Allowances

On September 25th the Regional Greenhouse Gas Initiative (RGGI) will hold the first-in-the-nation auction of carbon dioxide (CO2) allowances. A 60-day bid preparation process began on July 24, 2008.

The September 25th auction will offer 12,565,387 CO2 allowances, including CO2 allowances issued by Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont. Any CO2 allowances purchased at this auction can be used by a regulated facility for compliance in any of the RGGI states, even if that state does not offer allowances in this auction.

All materials needed to participate in the upcoming auction and an online question window may be accessed through http://www.rggi.org/trading_auctions.htm.

All auction participants must open accounts in the RGGI CO2 Allowance Tracking System; simple guidance for this procedure is available at http://www.rggi.org/tracking.htm.

By holding this auction and the one planned for December, the ten RGGI states have exceeded the commitment made in December 2005. By signing the original Memorandum of Understanding, participating states committed to have a program in place by January 1, 2009. That goal will be met and these early auctions will ensure an ample opportunity for bidders to obtain the allowances they will need for compliance across the entire ten-state region.

Lee International helps organizations benefit strategically and financially from emissions trading schemes, including regional schemes like RGGI, within the United States. Lee International Managing Director Cathy Lee was a consultant to the RGGI states for over 18 months helping to create the structure of the program. "The RGGI program may have modest goals," said Lee, "but it will help US businesses prepare for the mandatory cap and trade program that is clearly coming. It is in the interest of every greenhouse gas emitter to examine and figure out how to reduce its emissions now."

In addition to work on US regional trading schemes, Lee has worked with a focus on Clean Development Mechanism (CDM) projects in developing countries. The firm provides a full complement of legal, regulatory and advisory services connecting buyers and sellers.

For more information on how to participate in CO2 carbon trading under RGGI, visit the RGGI web site, or contact Cathy Lee of Lee International.