Up in the Air

By Bill Polits
As reported in the Wall Street Journal, the Regional Greenhouse Gas Initiative, a coalition of 10 northeastern states who have banded together to implement their own regional, mandatory cap-and-trade regime is holding its fifth greenhouse gas emissions auction today. Recent reports indicate that as a result of cap levels that were set high from the outset and lower than expected carbon emissions due to recession-dented demand, carbon producers in the region are not expected to need to buy credits through 2014.

The tie-in for the fire suppression industry is that cap and trade in itself does not spell doom for HFCs and other high global-warming-potential chemicals because caps come in all shapes and sizes. If the cap fits, wear it.