Ten states in the US Northeast recently formed the Regional Greenhouse Gas Initiative in order to form the first US cap and trade greenhouse gas emission market in the absence of guidance from the Bush administration.

12.5 million permits were featured in last week’s auction, which each represent 1 ton of carbon dioxide emissions. Power plants must stabilize emission levels at current levels by 2012 or turn in their carbon dioxide permits.

The states involved will spend the money raised on alternative energy initiatives and other programs aimed at reducing the impact of the cap and trade costs on consumers.

Tags: cap and trade, global warming, greenhouse gas emissions

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