Ten Northeast States Participate in Today's Carbon Allowance Auction

Auction aimed at reducing emissions and increasing funds for green energy

MIDDLETOWN, CONNECTICUT — December 17, 2008 — In a continuing effort to mitigate climate change, 10 states – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont – will participate in an auction of carbon dioxide (CO2) allowances as part of the Regional Greenhouse Gas Initiative (RGGI).

It is the United States’ second auction of CO2 allowances, or “credits.” The first – held in September 2008 – sold more than 12.5 million allowances and raised more than $38.5 million – including $4.2 million for Connecticut – to support energy efficiency and renewable energy development. The goal is for these investments, in turn, to lead to even further emissions reductions and greater energy savings to consumers.

The auction process limits the amount of CO2 released into the atmosphere, but allows businesses and other organizations to trade with each other – through the buying and selling of credits – for the right to release that CO2 from their business operations.

“Climate change is the greatest threat to our communities and natural areas over the next century, putting our health, our economy and our environment at risk,” said Adam Whelchel, acting state director for The Nature Conservancy in Connecticut. “RGGI is a groundbreaking program in the fight against climate change, one that we hope will serve as a model for a national program. We applaud the Northeast states for their leadership on this critical issue.”

About RGGI

The Regional Greenhouse Gas Initiative is an agreement among 10 Northeast and Mid-Atlantic states to implement a cap and reduction in CO2 emissions from power plants. RGGI is the first mandatory cap-and-trade program in the U.S. to address emissions that cause climate change. It is viewed as a potential model for a federal program to limit emissions of greenhouse gases.

Under the Initiative, CO2 emissions from electric-generating power plants will be capped at present levels until 2015. From 2015-2018, CO2 emissions from these sources will be reduced by 2.5% per year until a 10% reduction is achieved.

For more information on RGGI, visit nature.org.

To learn more about RGGI's role in fighting climate change in Connecticut, check nature.org's interview with Sarah Murdock, the Conservancy's climate change manager.

The Nature Conservancy is a leading conservation organization working around the world to protect ecologically important lands and waters for nature and people. The Conservancy and its more than 1 million members have protected nearly 120 million acres worldwide. Visit The Nature Conservancy on the Web at www.nature.org.