NEW YORK, Sept 15 (Reuters) - New York state is expected to sell carbon credits in the United States’ second greenhouse gas auction, which is scheduled for Dec. 17, after a state agency approved final rules on Monday.
The Regional Greenhouse Gas Initiative, a group of 10 northeast and mid-Atlantic states that formed the first U.S. carbon market in an attempt to slow global warming, will hold its first carbon credit auction on Sept. 25.
New York, which founded RGGI under previous governor George Pataki, did not finalize rules in time for the first auction.
The state, one of the largest polluters in the pact, is now slated to participate in the December auction after the New York State Energy Research Development Authority on Monday adopted regulations on carbon auctioning.
NYSERDA spokesman Tom Lynch said the approval will be in full force early next month.
RGGI will regulate emissions of carbon dioxide, the main greenhouse gas, at power plants starting next year. The auctions will offer polluters permits to emit the gas.
Experts have said demand for carbon credits should be thin in the first RGGI auction because the region’s emissions in 2007 were below the cap the group set on emissions of 188 million tons of carbon dioxide. [ID:nN03524153].
In addition, emitters have three years to comply with their carbon limits, so many of them may wait out the first auctions, they said.
The other nine participating states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island, and Vermont. (Reporting by Timothy Gardner, editing by Marguerita Choy)