Carbon Trading to Protect the Environment

Houston Galveston Mass Emissions Cap and Trade

Market Overview

Houston/Galveston Mass Emission Cap & Trade Program (MECT) is administered by the Texas Commission on Environment Quality (TCEQ).  The program establishes a mandatory annual NOx emission cap for major source facilities or where the site collectively has the potential to emit ten tons or more per year (tpy) of NOx.  The MECT program has a declining cap, mandating facilities comply with ever decreasing emission limits.  The program allows for trading and banking of allowances where an allowance (an allowance equals one ton of NOx emissions).   All new or modified facilities (subject to the MECT) in HGA must obtain allowances from other facilities already participating under the cap to offset any increased NOx emissions.