Markit completes auction of environmental credits for PENNVEST
Global financial information services company Markit has administered its first auction of environmental credits, successfully transacting 20,859 nitrogen and 700 phosphorus credits for PENNVEST...
LONDON, England, and NEW YORK, NY, Nov. 18, 2011 -- Markit, a leading, global financial information services company, today announced that it has administered its first auction of environmental credits. Markit has drawn on its extensive experience in running credit event auctions to establish Markit Auction Platform services for carbon, water and other environmental assets.
Markit was selected by the Pennsylvania Infrastructure Investment Authority (PENNVEST) to administer spot and forward auctions as part of its Nutrient Credit Trading program designed to reduce the discharge of nitrogen and phosphorus that threaten the quality of the Potomac and Susquehanna River watersheds, and thereby the Chesapeake Bay. PENNVEST is the financing agency in Pennsylvania for drinking water, wastewater and nonpoint source infrastructure projects. The agency provides low interest loans and grants for projects that improve water quality all across the Commonwealth.
On November 2, using the Markit Auction Platform, 20,859 nitrogen and 700 phosphorus credits were successfully transacted. The credits are created by reducing nutrient discharges into the watershed and are bought by wastewater treatment plants that must comply with National Pollutant Discharge Elimination System limits. One credit equals a one pound reduction in nutrient discharge.
Paul Marchetti, Executive Director of PENNVEST, said: "I am very pleased with how the Markit and PENNVEST teams worked together to make this auction such a success. I look forward to our continued collaboration as we work to expand this program and bring its benefits to a wider range of participants."
Kathy Benini, Managing Director of Markit Environmental, said: "We are pleased that PENNVEST turned to Markit to help support its innovative, market-based approach that unites a range of businesses and public entities to help meet Pennsylvania's water quality goals. Markit looks forward to partnering with other state and federal agencies to deploy auction mechanisms to improve our environment."
Administration of environmental auctions is the latest service offered by Markit to support state, regional and national programs that use market-based mechanisms to achieve environmental goals. Markit also operates the Markit Environmental Registry, a major international, multi-credit environmental registry.