In a recent video from the NJBIA’s 2024 Energy Conference, Jason Lemme of Hartree Partners addressed the impact of the Regional Greenhouse Gas Initiative (RGGI) on carbon emissions and ratepayers. Lemme leads the gas and power trading business for Hartree Partners, a global energy and commodities trading firm.
RGGI is a collaborative effort among multiple states aimed at reducing CO2 emissions from power plants. It requires fossil fuel power plants to purchase allowances through auctions or from other generators within RGGI, as well as projects that offset emissions. Despite its goals, Lemme pointed out some issues within the program that may influence energy costs.
“You have no price limits; you have no position limits; and it’s a free-for-all on who can participate in this market,” he stated. “I don’t know a single commodity on the planet where the people holding all the inventory are the same people who set the price. That would be like giving OPEC the futures market and saying go set the price after you go set the supply.”
For those interested in more details, the full video is available online.
