Regional Emissions Markets
Regional regulations for Emission Reduction Credits (ERC) compliance are complex, and vary significantly by region and pollutant. Our comprehensive experience and knowledge within the emissions markets allows us to provide insight and customized solutions.
Regional Emissions Markets arose as a result of a federal regulation termed New Source Review. Enforced by the EPA, this program mandates that any firm building or expanding a facility emitting criteria pollutants above a pre-defined threshold in certain regions of the country must purchase ERCs. Within these regions, when a facility reduces its emissions or shuts down, ERCs can be created. Companies looking to build new facilities with the potential to emit above certain thresholds must secure ERCs from the market prior to receiving a permit to construct. In some regions, an allowance cap-and-trade program operates instead of, or in conjunction with, ERC markets.
California and Texas each have multiple trading regimes within their borders, many of which have lower (more stringent) thresholds than New Source Review. In addition, regional regulations for ERC compliance are very complex, and vary significantly from region to region and pollutant to pollutant. Our established client relationships places us in a unique position in the market to provide insight and customized solutions to clients looking to transact in these markets.