The nation's
first auction of pollution permits under a global warming emissions cap
was launched today by the Regional Greenhouse Gas Initiative. RGGI is
a collaboration of ten Northeastern and Mid-Atlantic states that have
united to establish a program to limit carbon dioxide emissions from
power plants to 10 percent below current levels by 2019.
“Tackling global warming
emissions and shifting away from fossil fuels are among society’s
greatest challenges,” said Rob Sargent, Energy Program Director for
Environment America, who represented state-based environmental organizations
on the stakeholder group that shaped the RGGI program. “Today’s
auction of permits to emit global warming emissions represents a remarkable
precedent that will help put this region on a path to a cleaner and
more secure energy future; while providing important lessons for the
nation.”
The RGGI program is most noteworthy
because it is the first program to auction the pollution permits, rather
than give them to polluters for free based on their past emissions as
has been done in other programs. All of the states participating
in the program have committed to auctioning all or most
of their pollution allowances. The states intend to use the revenues
from the auction of pollution permits for measures that will lower the
cost of the program, such as helping citizens and businesses save energy
and promoting renewable energy.
“The governors
and legislators in the RGGI states deserve tremendous
credit for breaking with the status quo and recognizing that auctioning
pollution allowances is the fairest and most economically efficient
way to structure a cap and trade program,” said Sargent. “By
making polluters pay, we level the playing field between dirty and clean
energy options in the marketplace and accelerate the transition to a
clean energy economy. We can then use the revenues for public purposes
that achieve the greatest emission reductions at the lowest cost to
society.”
Environment America recommends
that policy-makers re-evaluate the RGGI cap level once the program is
launched to ensure that it achieves the emission reductions that science
says are necessary. The group also stressed
that capping and auctioning emissions is but one of many measures that must be taken to further reduce global warming emissions
and shift away from fossil fuel consumption. Other recommendations include enacting stronger energy efficiency standards
for vehicles, buildings and equipment; policies to dramatically
ramp up renewable energy; and investments in public transportation.
“There is much work to be
done to meet the environmental and energy challenges of the 21st
century,” said Sargent.“But, today represents an important milestone
on the journey to a new energy economy.”
