Would you a "carbon credit"?

Would you like to bid on a "carbon credit"? Now that I have your attention: You can! All you need is a minimum financial security of $1,860. And, moreover, you can pretty much do anything you want with the allowance. US carbon trading starts September 25th; in fact, some of the exchanges have already began moving RGGI (Regional Greenhouse Gas Initiative) credits. Naturally, the auction system is intended for commercial bidders, but nonetheless, it's important to note that a process is in place and set to launch. Yes, a mandatory carbon reduction market without Congressional action. However, we can expect that a federal cap-and-trade program in the relative near term. While RGGI emission standards only apply to fossil fuel electricity generation units, the initiative intends to learn from it's initial program and perhaps apply the same scheme to other industries. So, this fall is exciting: Politics, football, and a CO2 auction.

Vincent DeVito is a former U.S. Assistant Secretary of Energy and Regulator who is currently an Energy and Climate Change Attorney residing in Bowditch & Dewey, LLP's Boston office. Mr. DeVito can be reached at vdevito@bowditch.com