As the Regional Greenhouse Gas Initiative prepares for its second auction later this week, a group known as Energy Northeast has released a report on the 10 states involved. Among the highlights in the report is that the 10 RGGI states are on pace to be 16 percent below the 2008 emissions cap. The report says that emissions have fallen, in part, for the following reasons:
-The high price of oil in relation to the price of natural gas and corresponding decline in oil utilization in favor of natural gas.
- The high price of coal in the summer of 2008 and corresponding decrease in combustion of this carbon-intensive fuel.
- Increased availability of wind, hydro and nuclear.
It is stated that some of these reasons are likely to change in 2009, thus emissions levels may increase. Energy Northeast also believes that there will be strong demand for allowances during the second auction on December 17, 2008.