Latest Insight
Last Look - Oil posts a first quarterly loss since 2020 | Gas gains $1.34, or nearly 25% this quarter
Environmental Markets / Carbon Allowances

 

Carbon Allowances 

 

Carbon allowances are issued by a government under an emissions cap-and-trade regulatory program. Each allowance (or emissions permit) typically allows its owner to emit one tonne of a pollutant such as CO2e. Under a cap-and-trade system, the supply of GHG allowances is limited by the mandated 'cap'.

Below are some examples of carbon allowance programs

 

CALIFORNIA CAP AND TRADE

Facilities in all sectors located in California that emit more than 25,000 tons/CO2e are required to offset all emissions with carbon allowances and offsets

Read More

California’s objective is to reduce greenhouse gas emissions by 40 percent below 1990 levels by 2030 – the most ambitious target in North America.  Any facility that emits more than 25,000 tons of CO2e annually as well as fuel suppliers must comply with this program. 

Close

REGIONAL GREENHOUSE
GAS INITIATIVE (RGGI)

Power generating facilities located in 11 states (CT, DE, ME, MD, MA, NH, NJ, NY, RI, VT, and VA) and potentially PA in 2022 are required to offset all emissions with carbon allowances and offsets

Read More

Their first carbon dioxide (CO2) auction of RGGI allowances was held in 2008.The program was created for the purpose of limiting carbon dioxide emissions from power plants in the participating states. 

Close

Houston-Galveston-Brazoria (HGB)

The Houston-Galveston Brazoria (HGB) area includes the counties of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller come under the nonattainment status for ground-level ozone under the 8-hour standard).

Read More

The HECT Program is a market-based cap-and-trade program that implements an annual HRVOC emission cap for applicable facilities in Harris County. Program participants are required to use allowances to cover HRVOC emissions on an annual basis. The allowances available for use each year are capped at a level necessary to attain the National Ambient Air Quality Standard for ozone. Affected sites are required to participate.

Close

 

 

Cross-State Air Pollution Rule (CSAPR)

The Cross-State Air Pollution Rule (CSAPR) a program run by the United States Environmental Protection Agency (EPA) that requires certain states to reduce power plant emissions that contribute to ozone and/or fine particle pollution that cross the borders into other states.

Read More

The Cross-State Air Pollution Rule (CSAPR) sets new standards for power plants that emit nitrous oxide (NOx) and sulfur dioxide (SO2). CSAPR went into effect on January 1, 2015, after a few years of litigation, for SO2 and NOx pollutants.

Close

SO2 Acid Rain Program

The Acid Rain Program is a market-based initiative taken by the United States Environmental Protection Agency in an effort to reduce overall atmospheric levels of sulfur dioxide and nitrogen oxides, which cause acid rain.

Read More

he Acid Rain Program was established under Clean Air Act. The SO2 program sets a permanent cap on the total amount of SO2 that may be emitted by electric generating units in the United States. Under this system, EPA sets a cap on overall emissions. The program is an implementation of emissions trading that primarily targets coal-burning power plants, allowing them to buy and sell emission permits, or allowances, according to individual needs and costs.

Close

 

Do you have operations in an area where carbon allowances are required? Let's talk.

Start the Conversation

Insights

Our market research offers a clear perspective with actionable insights.

Differentiators

AEGIS is the recognized industry leader because of our:

Technology

Unmatched Technology

We leverage technology to distribute information, improve execution, assess scenarios, and deliver actionable insights through web and mobile apps. And our investment is ongoing.

Graph

Best Execution

We tailor recommendations to specific budgets, underwriting, lender covenants, and investor objectives – and partner with over 40 counterparties to arrive at fair value.

Insight

Unique Insight

The scale of our platform, a team dedicated to studying global commodity and rate markets, and an unmatched client base allow us to offer a unique perspective.

Focus

Complete Focus

It would be easy to pursue compromising activities and fee structures. We are 100% focused on capital and cash flow protection through fixed-fee contracts. No conflicts. Ever.


 300+

Entities

40+

Counterparties

75+

Sponsors and Lenders


6x Global Leader as Hedging Advisory Firm

^