December 24, 2001—The US Environmental Protection Agency (EPA) has announced the latest innovation in air emissions trading: the Online Allowance Transfer System. This system enables participants in the sulfur dioxide (SO2) and nitrogen oxide (NOx) markets to record trades directly on the Internet instead of submitting paper forms to EPA for processing.
A trading unit is called an allowance and is equivalent to one ton of air emissions. EPA’s tracking systems, which currently hold allowances with a combined value over $20 billion, record official SO2 and NOx allowance transfers under existing emission cap and trade programs. These programs reduce air pollution by setting a permanent cap on emissions, then allowing trading within that cap. As a prerequisite to trading, however, EPA requires rigorous monitoring and reporting standards, and mandates that companies pay automatic fees to the government for any emissions above the legal limit.
EPA expects this online system will streamline and accelerate emission trading, saving industry and government time and money.
For information on registering for access to online trading, contact EPA’s Clean Air Markets Division at 1200 Pennsylvania Avenue, NW, Mail Code 6204N, Washington, DC 20460.
