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The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Ten Northeastern and Mid-Atlantic states have capped and will reduce CO2 emissions from the power sector 10% by 2018, utilizing a cap & trade system. Capped sources are power plants with an output of 25 MW or greater that use a fossil fuel as their primary source of generating electricity.
States sell nearly all emission allowances through auctions, with one allowance being the right to emit one short ton of CO2 equivalent. In addition, an active and liquid secondary market exists for allowances. Amerex has had a presence in the RGGI secondary market since the pre-compliance period, and is currently a leading OTC broker of RGGI allowances, offsets and related financial instruments.