Governor Baldacci Says Carbon Allowances Auction is a Major Step Forward
Press Release
Governor Baldacci Says Carbon Allowances Auction is a Major Step Forward
Governor John E. Baldacci said today that the first auction of carbon allowances occurring today is a major step forward in addressing climate change. The auction began at 9 Thursday morning. Six states participating in the Regional Greenhouse Gas Initiative (RGGI) are involved in the Internet-based auction, including Maine.
"This auction shows what States working together are accomplishing," Governor Baldacci said. "This effort requires detailed rules and program development through environmental and energy commissioners in 10 northeastern States. Two days ago, seven western States and four Canadian Provinces released design principles for a cap-and-trade program of their own. The States have recognized the need to act and Maine had a groundbreaking role in this effort."
RGGI, passed by the Legislature and signed by the Governor in 2007, creates a flexible, market-based, cap-and-trade system. This system controls the right to emit by setting an emissions cap, but allows companies to trade carbon credits to meet their emission requirements. The total number of emission credits adds up to the total emissions cap for the region. This system allows flexibility for companies to reduce emissions in the most cost-effective manner and to sell their allowances so carbon reductions are made in most efficient manner across the 10-state region.
"I believe that this issue needs to move forward at the federal level," the Governor said. "We recognize the gravity of the threats posed by climate change and other States are already supporting a cap-and-trade system to reduce emissions of greenhouse gases. We must move forward to address global warming not just in the Northeast but throughout the United States."
The results of the first U.S. carbon auction will be released after they are officially certified, which will likely occur at the beginning of next week.
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