Regularoty Emissions Allowances

Emission allowances, also known as carbon allowances, are tradable permits that give the holder the legal right to emit a specific amount of greenhouse gases into the atmosphere.

Emission allowances are issued by governments as part of emissions cap-and-trade programs, which limit the supply of allowances through a mandated "cap". Organizations can obtain allowances in a number of ways, including:

  • Auction: Purchasing allowances through an auction
  • Free: Receiving allowances for free based on expected emissions
  • Excess: Purchasing allowances from other organizations that have excess

The goal of emission allowance programs is to reduce the amount of harmful gasses emitted into the environment. Organizations can sell any allowances they don't use to other organizations that need them to offset their own emissions.

Emission allowance programs exist in many countries, including the United States, Canada, the European Union, China, Korea, and New Zealand.

ZeroGHG is active in trading emission allowances and able to assist you in sourcing allowance in the following markets:

  • The Western Climate Initiative (WCI) founded in 2007 is a collaborative effort among several U.S. states and Canadian provinces to reduce greenhouse gas emissions through a market-based cap-and-trade system. Currently, the initiative includes California, Quebec, and Washington. The WCI, Inc., a non-profit organization, provides administrative and technical support to these jurisdictions to help implement and manage their emissions trading programs.
  • The Technology Innovation and Emissions Reduction (TIER) Regulation which is Alberta's industrial carbon pricing and emissions trading system. It applies to facilities that emit 100,000 tonnes or more of carbon dioxide equivalent (CO2e) greenhouse gases (GHGs) per year1. The goal is to encourage industrial facilities to reduce emissions and invest in clean technology.
  • The Regional Greenhouse Gas Initiative (RGGI) is a cooperative, market-based effort among 11 U.S. states in the Northeast and Mid-Atlantic regions to cap and reduce carbon dioxide (CO2) emissions from the power sector. The participating states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
  • The European Union Emissions Trading System (EU ETS) is the world's first and largest international emissions trading system. It was launched in 2005 and is designed to reduce greenhouse gas emissions from the power, industrial, and aviation sectors2. The system covers around 45% of the EU's greenhouse gas emissions.
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