Emissions: Where Are the Traders?

Market fundamentals are driving NO_X prices higher.

Environmental compliance appears poised to become the biggest single driver of asset value for electric generators during the next five years.

While limits on sulfur dioxide (SO₂) emissions have been achieved with relatively minor impact through the tradeable allowance program, permit systems in the future will become increasingly stringent. The NO_X State Implementation Plan (SIP) Call represents just the first instance of this.

The next two years will see further resolution of New Source Review enforcement actions, proposed regulations of coal plant mercury emissions, and likely further action with regard to multi-emission proposals governing NO_X, SO₂, and mercury emissions within a single program.