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Carbon Pricing in Wholesale Energy Markets: Frequently Asked Questions

Carbon pricing involves incorporating the social cost of carbon dioxide (CO2) emissions into wholesale electricity markets. As currently being considered through an open and transparent stakeholder process, carbon pricing would better align NYISO’s wholesale energy markets with New York State environmental objectives by embedding a cost per ton of CO2 emissions in the sale of wholesale power, creating a price signal for existing generators to minimize their CO2 emissions through upgrades and efficiency improvements.


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