RGGI Emissions Trends and the Second Allowance Auction

Greenhouse gas emissions in the Northeast this year could ring in about 16 percent lower than the emissions cap set in the Regional Greenhouse Gas Initiative, according to this report.

Lower electricity consumption, the economic slowdown, higher energy prices earlier this year and greater non-fossil fuel generation caused emissions to drop. But with today’s energy costs falling through the floor, Environment Northeast (ENE) warned the low emissions may not last.

High oil and coal prices made natural gas a cheaper, more attractive alternative but the recent drop in oil and coal prices could reverse this trend and lead to higher emissions. Meanwhile, electricity generation from low-carbon sources such as hydro, wind and nuclear grew 10 percent between 2001 and 2007. Emissions have stabilized in the Northeast in recent in years despite economic growth, suggesting that economic growth may not always lead to higher emissions.