EMA Disappointed with Results of EPA SO2 Allowance Auction Results

March 23, 2010 - PRLog -- The results announced from today’s SO2 Allowance Auction conducted by the U.S. Environmental Protection Agency confirm both the continued interest in trading emissions as well the need for greater regulatory clarity.  Despite the protracted uncertainty in the wake of court decisions challenging the next phase of controls, there were sufficient bidders in both the spot and advance auction, with the auction clearing at prices close to the current market valuation of each year’s allowances.

The Environmental Markets Association looks forward to the U.S. EPA’s pending release of the Transport Rule, as well as any supportive Congressional action to restore the SO2 market to its former vigor.  Market-based solutions have a proven track record of providing real emissions reductions at the lowest possible cost and it is dissapointing that outside forces have caused this effective policy tool to be diminished.   It is particularly critical if we are to rely on CO2 trading to address climate change (as envisioned in current versions of the legislation) to not to undermine the successful SO2 and NOx emission trading programs in the US.

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The Environmental Markets Association (EMA) is the leading US-based trade association focused on promoting market-based solutions as the most effective strategy to combat environmental issues. EMA represents a diverse membership including large utilities, emissions brokers and traders, exchanges, law firms, project developers, consultants, academics, NGOs and government agencies – the people making environmental markets work.

Established in 1996 and currently located in Washington, DC, EMA has been serving its membership and supporters with up-to-the-minute educational programs including a quarterly Webinar series, simulcasts of Issues Forums, high level sessions and speakers at their hosted conferences, and multiple presentations of the highly acclaimed Introduction to Emissions Trading Workshop and Environmental Risk Management Workshop.