CAP&TRADE FUNDS NEW ENERGY

Northeast cap and trade program reinvests in clean energy
Beth Dakey, February 28, 2011 (Boston Globe)

"The vast amount of money raised by the nation’s first mandatory carbon cap and trade system is going back into clean energy, a new report by the program shows.

"The Regional Greenhouse Gas Initiative began two and a half years ago to reduce heat-trapping carbon dioxide emissions from power plants ten percent by 2018 in ten Northeastern and Mid-Atlantic States – including all of New England."

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"Power plants buy emission allowances auctioned off by states for every ton of carbon dioxide they emit, with plants that emit larger amounts having to buy more allowances than cleaner ones. The number of available allowances will decrease as the overall cap is lowered, raising their price and, with hope, encouraging plants to invest in clean technologies to avoid the higher cost of polluting.

"The report found that the ten states are investing 52 percent of a total $789.2 million raised so far by the auction into energy efficiency, 11 percent into renewable energy, 14 percent in energy bill payment assistance and another 1 percent for other greenhouse gas reduction programs…[S]ome of the money’s good is amplified by giving grants to communities to invest in clean energy initiatives…"