NYS Envisions Plan for Auctioning Emission Allowances to Reach Climate Targets
A preliminary vision to further reduce carbon emission throughout New York State was recently released by Governor Hochuls’ administration. The Released by state officials along with the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) the pre-proposal outline of a program dubbed “Cap-and-Invest” provides a framework for the core regulatory components of the program. Expected to launch in 2025, the program will require organizations to self-report the amount of carbon they emit each year. Fuel suppliers and other polluting industries will be required to purchase allowances to produce emissions. Each year, the number of available allowances will decrease in number, which is expected to push more costs onto consumers. However, the auctions which are expected to raise billions could offset costs by funding consumer tax credits and green energy projects according to an affordability study released in December.