Allowance Markets
Under EPA's power sector programs, allowances are allocated to regulated sources under an overall emissions budget that caps total emissions across all sources combined. Each allowance represents an authorization to emit one ton of emissions per allowance held in a compliance period. Anyone can transfer or purchase previously allocated allowances, including both regulated companies and members of the general public. EPA and market participants track allowance holdings and record transactions through the CAMD Business System (CBS). Those records and other emissions trading program information are publicly accessible via the Clean Air Markets Program Data (CAMPD) web application.
Buying and Selling Allowances
Allowances can be bought directly from a company, individual, or group who holds them, or through a broker. Additionally, SO2 allowances under the Acid Rain Program can be purchased at the annual EPA Acid Rain Program SO2 Allowance Auction. Except for the auction, EPA does not sell allowances. EPA does not publish allowance price data.
For more information, visit our Frequent Questions about Allowance Markets.
Brokers
Brokers bring together parties that have allowances to buy and sell. The following list represents the brokers and exchanges known to EPA. The list is based on publicly available information and may not be complete. Mention of trade names or commercial entities does not constitute endorsement or recommendation for use. If you are a broker or exchange and would like to be added to the list, please let us know.
| Name | Phone | Website |
|---|---|---|
| AEGIS Hedging | (713) 344-0491 | aegis-hedging.com/emission-advisors |
| Air Quality Consultants | (714) 397-5508 | aqc-inc.com |
| Amerex Energy | (281) 340-5200 | www.amerexenergy.com/environment |
| Anew Climate | (281) 207-7200 | anewclimate.com |
| BGC Environmental Brokerage Services | (646) 346-6899 | www.emissionstrading.com |
| Evolution Markets | (914) 323-0255 | www.evomarkets.com |
| GFI Group, Inc. | (212) 968-4100 | www.gfigroup.com |
| ICAP Energy | (212) 208-2000 | www.icap.com |
| ICE Futures U.S. | (312) 836-6727 | www.theice.com |
| Marex | (212) 618-2800 | www.marex.com |
| TFS Energy | (212) 943-2883 | www.tradition.com |
EPA's Acid Rain Program SO2 Allowance Auction
Because the availability of allowances is crucial to ensure both the economic efficiency of the emissions trading program and the addition of new electric-generating capacity, Title IV of the Clean Air Act Amendments mandates that EPA hold or sponsor a yearly auction of allowances for a small portion of the total allowances allocated each year. The auction helps ensure that new units have a public source of allowances beyond those allocated initially to existing units. • Historically, in the early stages of the regulatory program, the auction helped provide price information to the allowance market.
Once a year, EPA auctions a certain number of SO2 allowances. Utilities, environmental groups, allowance brokers, and anyone else interested in purchasing allowances can participate. Auction allowances are sold to the highest bidder until no allowances remain. Successful bidders are notified and listed on EPA’s website.
To view auction results, visit the Acid Rain Program SO2 Allowance Auction Results page.
To bid in the EPA auction please see the How to Bid Factsheet in the Auction section of the Clean Air and Power Forms page.
For more information, visit our Frequent Questions about the Acid Rain Program Allowance Auction.