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Buying Allowances
Allowance Trading
Under both the Acid Rain Program and the Clean Air Interstate Rule (CAIR), anyone can purchase allowances, including both regulated companies and members of the general public. Some individuals and groups purchase allowances as an environmental statement, because withholding allowances from the market prevents those allowances from being used by regulated sources to cover emissions.
EPA itself does not sell allowances; our job is to track allowance holdings and record transactions.
The specific procedures for each program are explained below:
Acid Rain Program: SO2 Allowances
In addition to buying allowances directly from a company or individual who holds them, you can buy allowances in three ways:
- Through EPA's annual auction
- Through a broker.
- Through environmental groups that "retire" allowances so they can't be used to cover emissions.
Keeping an allowance off the market achieves the same environmental effect whether you buy the allowance through the EPA Auction, a broker, or an environmental group.
Clean Air Interstate Rule (CAIR): Nitrogen Oxides (NOx) Allowances
The easiest way to buy and sell NOx allowances is to work through a broker. As in the Acid Rain Program, brokers connect buyers and sellers.
Unlike the Acid Rain Program, the CAIR does not hold an annual auction. The only environmental organization we are aware of that will retire NOx allowances is the Clean Air Conservancy.
See the environmental groups for disclaimer and contact information. If you are aware of other such organizations, please let us know.
Brokers
One option for buying allowances is through an allowance broker. Brokers bring together parties that have allowances to buy and sell. Brokers are more appropriate for higher-volume allowance transactions. The following list represents the brokers and traders that we know about. 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're a broker or trader and would like to be added to the list, please let us know.
Contact Information for Obtaining SO2 and NOx Allowances
All of the links below take you out of EPA's Web site, so we can't guarantee the accuracy of the information they present.
| Name | Phone | Web site |
|---|---|---|
Air & Liquid Advisors |
713-225-6600 |
|
Amerex Energy |
281-340-5200 |
|
Cantor Fitzgerald Environmental |
212-829-5460 |
|
Chicago Climate Futures Exchange |
312-229-5135 |
|
Conservation Services Group |
508-836-9500 |
|
Element Markets LLC |
281-207-7200 |
|
Evolution Markets |
212-430-6475 |
|
GFI Group, Inc. |
212-968-6937 |
|
Natsource |
212-232-5305 |
|
New York Mercantile Exchange |
212-299-2301 |
|
Polaris Markets LLC |
316-775-1900 |
|
Spectron Energy |
360-892-3300 |
|
TFS Energy |
212-943-2883 |
|
United Power, a Division of ICAP United, Inc. |
281-340-8300 |
Environmental Groups
Environmentally focused allowance buyers may be interested in contacting an organization that specifically acquires and retires allowances, preventing them from being used to cover SO2 emissions. For example, the Clean Air Conservancy will purchase allowances for you and provide you with a "Clean Air Certificate" documenting the amount of pollution your contribution has prevented. The certificates may also be purchased as a gift for someone else. The Acid Rain Retirement Fund accepts donations and educates kids about acid rain. See the list below for additional contact information.
The following organizations state that they retire allowances, meaning that they acquire allowances that will never be used to allow emissions. EPA does not review their operations; we recommend that you research any organization before using its services.
All of the links below take you out of EPA's Web site, so we can't guarantee the accuracy of the information they present.
| Name | Contact | Phone | Web site |
|---|---|---|---|
Clean Air Conservancy Trust |
Michael Short |
216-522-8700 |
|
Acid Rain Retirement Fund |
Michael S. Hamilton |
207-780-4190 |
|
Adirondack Council |
Scott Lorey |
800-842-7275 |
|
Environmental Resources Trust |
Michael Gillenwater |
202 785 8577 |