News

August 09, 2011

EPA and NHTSA Include Credit Trading Provisions in First-Ever GHG and Fuel Consumption Standards Established for 2014-2018 Model Year Medium- and Heavy-Duty Vehicles and Engines.

On August 9, 2011, EPA and NHTSA issued the first-ever GHG and fuel consumption standards for heavy-duty trucks. The new program sets fuel efficiency and greenhouse gas emission standards for three categories of medium- and heavy-duty trucks (big rigs, heavy-duty pickup trucks and vans, and vocation vehicles). Depending on vehicles type, the new rules will require trucks to be 10 to 20 percent more fuel efficient by the 2018 model year. As finalized, the primary flexibility provisions are an engine averaging, banking, and trading (ABT) program and a vehicle ABT program. These ABT programs will allow for emission and fuel consumption credits to be averaged, banked, or traded within defined averaging sets. For a copy of the final rule, click here

 

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Our easy-to-use online trading platform makes it possible for automakers, engine manufacturers, fuels producers, and fleet operators to buy and sell regulatory compliance credits via forward auctions and reverse auctions.
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In a Forward Auction, a company with excess credits initiates an auction to sell credits and companies needing credits bid to buy them. As the auction proceeds, bidding drives up the price of the credits. When the auction ends, the company that has offered to pay the most for the credits is the winner.

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In a Reverse Auction, a company needing credits initiates an auction to purchase credits and companies with excess credits bid to sell their credits to that company. As the auction proceeds, bidding drives the price of the credits down. When the auction ends, the company that has offered to sell their credits for the least amount of money is the winner.

See An Example