# First Auction Today for RGGI Cap-and-Trade

*Published:* 2008-09-25
*Author:* Sheryl Canter

![Sheryl Canter](http://environmentaldefenseblogs.org/climate411/wp-content/blogs.dir/7/files/2008/07/sheryl_canter.jpg)The [Regional Greenhouse Gas Initiative](http://rggi.org/) (RGGI) is an agreement among 10 Northeastern and Mid-Atlantic states to reduce global warming pollution from power plants by means of a [cap-and-trade system](https://blogs.edf.org/climate411/2007/06/04/how-does-cap-and-trade-work/). In cap-and-trade, global warming pollution is limited to an agreed-upon cap that declines over time. The governing authority issues "permits" – also called "allowances" – corresponding to the cap, with one allowance equal to a ton of CO2 or its equivalent in greenhouse gases. Companies must have allowances for any global warming pollution they emit.

The RGGI auction of allowances is today, and was [opened by New York Governor David Paterson](http://www.ny.gov/governor/press/press_0925081.html). The [*Washington Post*](http://www.washingtonpost.com/wp-dyn/content/article/2008/09/24/AR2008092402958.html) said in an editorial, “We hope that it serves as a reminder to Washington of what can be accomplished when vision and leadership are exercised.” We agree! From EDF president [Fred Krupp](http://edf.org/page.cfm?tagID=870):

> The launch of America’s first carbon market is proof positive that the U.S. can and will take bold steps to combat climate change.

*This post is by Sheryl Canter, an online writer and editorial manager at Environmental Defense Fund.*