California's Cap-and-Trade Program is Alive and Well

This is the eighth installment in a series of posts on California's climate leadership. These posts address a wide range of related topics including economic benefits and renewable energy.

With unprecedented bipartisan support, California lawmakers have voted to extend the state's cap-and-trade program. This carbon pricing program is key to meeting California's ambitious carbon reduction targets. The plan puts a statewide cap on greenhouse gas emissions and allows companies to buy and sell pollution credits.

Agreement on a Pan-Canadian Carbon Pricing Scheme

It looks as though Prime Minister Justin Trudeau's Liberals are moving forward with a national carbon pricing scheme albeit adapted to regional circumstances. On Thursday March 3, 2016, Trudeau announced that the federal government along with all ten provinces have agreed to a "comprehensive and ambitious plan" to put a price on carbon.

Carbon pricing (which includes both cap and trade and a carbon tax) leverages the market to disincentivize emissions intensive activities by making them more expensive while incentivizing low carbon technologies. In effect carbon pricing integrates the true cost of carbon which is currently not reflected in the market. Carbon pricing is the best way to help governments reduce emissions while minimizing economic impacts.

Market Based Approaches to Combating Climate Change

Sustainability has woven its way into market mechanisms and it is changing business models. Almost a dozen stock exchanges around the world now require sustainability risk disclosure from listed companies and around 7,000 companies now produce annual sustainability reports through GRI. Carbon pricing, the long awaited holy grail of market based change is slowly becoming a global reality.  Both to capitalize on opportunities and to mitigate against risk, sustainability is now a strategic imperative that no business can afford to ignore.

The Merits of Carbon Pricing in B.C.

Although the ruling Conservative federal government has fought any mention of a national carbon tax, individual provinces like British Columbia (B.C.) are moving forward with their own initiatives.

B.C. enacted a carbon tax in 2008 that covers about 70 percent of fossil-fuel consumption. B.C.’s carbon tax is currently pegged at $30 a ton. It has helped the province’s per-capita emissions decline almost 10 percent from 2008 to 2010. B.C.'s carbon tax has also played an instrumental role in convincing the US states to embrace carbon pricing. B.C. forged an agreement with Washington, Oregon and California to create the Pacific Coast Action Plan on Climate and Energy. Their plan is to prioritize clean energy and innovation through a strong economic incentive provided by a carbon tax or form thereof. These jurisdictions collectively represent 53 million people, and an economic region with a combined GDP of $2.8-trillion — making it the world's fifth-largest economy.

Video - Why a Carbon Tax May be the Best Way to Reduce CO2

In this video Judd Legam, editor of ThinkProgress explains how a carbon tax works. This effort is of great importance in light of the current concentration of carbon dioxide in the earth's atmosphere which now exceeds 400 parts per million which is causing big changes in global temperatures, which means big changes in climate: more droughts, more wildfires, more extreme weather, more crop failure, and all of the other effects of global warming. According to Legam, the simplest solution is a carbon tax.

RGGI States' Third Consecutive Year of GHG Declines

For the third consecutive year greenhouse gas emissions have fallen in the US states that are part of the Regional Greenhouse Gas Initiative (RGGI). These nine states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) recorded a six percent decline in greenhouse gas emissions in 2013.

All I Want for Christmas is a Price on Carbon

As 2013 winds down, there are promising signs that we may actually see a price on carbon in the U.S. In 2010, the cap-and-trade bill was killed in the Senate by the fossil fuel industry’s ubiquitous misinformation campaigns. However, a confluence of events have renewed hopes that we may yet see carbon pricing legislation that could significantly reduce U.S. carbon emissions.

Why we need a carbon tax

Paying for carbon pollution is the best way to put free markets to work to reign in global warming causing emissions. There is a virtual consensus among economists who say that putting a price on carbon is the most effective way to fight global warming. The case for carbon pricing is strong, this point has been repeatedly made by the World Bank and a number of economists including a team from the London School of Economics.

24 Hours of Reality: The Cost of Carbon Online Event

The event known as "24 Hours of Reality: The Cost of Carbon!" is an online event that is taking place on October 22 and 23. (see bottom of the page for North American showtimes). In 2012 over 16 million people around the world tuned in. This year organizers expect to break that record.

Al Gore, the founder and Chairman of the Climate Reality Project, is staging this event to help raise awareness about the fact that we are already paying for climate change.

During this year's 24 Hours of Reality, the Climate Reality Project will highlight the costs of carbon pollution from our taxes to our health care bills. The day will also address how putting a price on carbon is the best way we can deal with the climate crisis.

As explained by Gore, "We can’t keep paying for polluters’ choices. To solve the climate crisis we know we have to put a price on carbon."

Video - German Climate Scientist Argues the Merits of a Carbon Tax in Australia

German climate change scientist Doctor Malte Meinhausen discusses the value of the Australian Government's carbon tax in 2011. Meinhausen references the European carbon tax and makes the point that Australia's efforts sets the right precedent for the rest of the world to follow. He also addresses some difficult questions about the economic impacts of such a tax.

World Bank President Advocates Putting a Price on Carbon

Many believe that putting a price on carbon is the best way to combat climate change. Now the chorus of those calling for just that has been joined by World Bank President Jim Yong Kim. He recently urged the world’s environmental ministers to implement a five-point plan that includes putting a price on carbon dioxide emissions, improving agricultural practices and ending fossil fuel subsidies.

Kim urged more countries to roll out price mechanisms either through a tax on carbon, indirect taxation, regulation or creation of a carbon market. Kim made the remarks to 30 of the world's environment ministers gathered in Berlin for informal talks on a new global climate deal to take effect in 2020.

Carbon Pricing and Emissions Trading a Global Review

Carbon trading is increasing around the world as levels of atmospheric carbon are about to move past the 400 parts per million threshold. The European Union has been operating the world’s biggest emissions market since 2005. In North America there is the Regional Greenhouse Gas Initiative (RGGI) and the Western Climate Initiative (WCI). According to Thomson Reuters Point Carbon the North America carbon trading market doubled in 2012 with the inauguration of carbon markets in California and Quebec. In 2012, the volume of permits and credits traded was estimated to be 179 million tons, valued at $782 million.

Although six US states (New Mexico, Arizona, Washington, Oregon, Montana and Utah) abandoned the WCI, five Canadian provinces joined California to form the biggest North American carbon trading market by value. In 2012 the WCI distributed 24 million metric tons of allowances in California and Quebec. As well as pursuing participating in the WCI, California has been actively creating its own cap and trade program.

Video - What are the benefits of a carbon price?

A carbon price can reduce carbon pollution and move towards a clean energy future. This animation explains the benefits of a carbon price. For more information, go to www.cleanenergyfuture.gov.au

Related Posts
World Bank President Advocates Putting a Price on Carbon
Carbon Pricing and Emissions Trading a Global Review
RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth
The Success of RGGI Carbon Trading Shows Cap-and-Trade Works
Video - How does carbon pricing work?
Video - A Price on Carbon in 5 Easy Steps
Video - The Cost of Carbon

Video - How does carbon pricing work?

how a carbon price can reduce carbon pollution and move towards a clean energy future. This animation explains how a carbon price can reduce carbon pollution and move towards a clean energy future. For more information, go to www.cleanenergyfuture.gov.au

Related Posts
World Bank President Advocates Putting a Price on Carbon
Carbon Pricing and Emissions Trading a Global Review
RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth
The Success of RGGI Carbon Trading Shows Cap-and-Trade Works
Video - What are the benefits of a carbon price?
Video - A Price on Carbon in 5 Easy Steps
Video - The Cost of Carbon

Video - A Price on Carbon in 5 Easy Steps

how a carbon price can reduce carbon pollution and move towards a clean energy future. This animation explains how it can be done.

Related Posts
World Bank President Advocates Putting a Price on Carbon
Carbon Pricing and Emissions Trading a Global Review
RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth
The Success of RGGI Carbon Trading Shows Cap-and-Trade Works
Video - What are the benefits of a carbon price?
Video - How does carbon pricing work?
Video - The Cost of Carbon

Video - The Cost of Carbon

Narrated by Reggie Watts. We are all paying the price of carbon pollution. It's time to put a price on carbon and make the polluters stop the carbon destruction. For more information go to http://ClimateRealityProject.org

Related Posts
World Bank President Advocates Putting a Price on Carbon
Carbon Pricing and Emissions Trading a Global Review
RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth
The Success of RGGI Carbon Trading Shows Cap-and-Trade Works
Video - What are the benefits of a carbon price?
Video - How does carbon pricing work?
Video - A Price on Carbon in 5 Easy Steps

RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth

According to a report released on March 26th, the Regional Greenhouse Gas Initiative (RGGI) has spurred the growth of renewable energy, reduced greenhouse gases (GHGs) and helped to grow the economy in the US Northeast. Between 2000 and 2010, the economies of the ten Northeast states grew twice as fast per capita as other states while per capita carbon dioxide emissions declined 25 percent faster.

These are the findings of a report released by Environment America. The report titled "A Double Success: Tackling Global Warming While Growing the Economy with an Improved Regional Greenhouse Gas Initiative," shows that it is possible to increase renewable energy, lower GHGs and grow the economy at all at the same time.

“By promoting clean energy and energy efficiency programs, RGGI helps keep energy dollars in our local economy while reducing the risk of climate change-related costs,” said Pat Stanton, senior vice president for policy and advocacy at the Conservation Services Group (CSG), a large energy services company. “In the last five years, RGGI has helped to spur CSG’s growth. We have added over 450 new employees and improved the efficiency, comfort, and affordability of thousands of New England homes.”

California's Cap-and-Trade Leadership

On Wednesday November 14, California held its first auction to sell carbon credits. For six years that state has been working on its cap-and-trade system, more than six years in the making. Finally California has imposed a limit on the amount of carbon emissions and this limit will be reduced over time so that by 2020 the state can cut emissions by 15 percent as compared to 1990 levels. Companies that exceed their limit are forced to buy credits from projects that cut greenhouse gas emissions. Almost all of the 23.1 million credits California has distributed to utilities and big industry for 2013 compliance have been free

Cap-and-trade puts market mechanisms to work on behalf of the environment. This approach to emissions reductions is a model for the rest of the nation. It was market driven forces that caused the build-up of climate change causing greenhouse gases. It therefore stands to reason that similar market mechanism can be brought to bear to reduce emissions and curtail warming.

Scientists Want Carbon Taxes to Address Climate Change

NASA scientist Jim Hansen calls for a carbon tax as he describes climate change inaction as the moral equivalent of supporting slavery. Hansen argues that current generations are morally responsible to protect the Earth for their children and grandchildren. He is calling for a global carbon tax and sees inaction on climate change as an "injustice of one generation to others". Preceding generations may have been able to plead ignorance but we no longer have that luxury.

As reviewed in a Guardian article, Hansen's latest scientific paper, which he co-authored with 17 other experts, urgently calls for an immediate 6% annual cut in CO2 emissions, and substantial growth in global forest cover. Hansen and his colleagues warn that failing to cut CO2 emissions by 6% now will mean that by 2022, the annual cuts would need to reach a more drastic level of 15% a year.

South Korea Passes Cap-and-Trade Legislation

South Korea has passed legislation that will see the introduction of a greenhouse gas emissions trading program in which companies will buy or sell rights to emit carbon dioxide. Although the legislation had bipartisan support working out the details may be difficult.

Global Carbon Market will Grow in 2012 then Decline in 2013

As reported in Commodities Now, the carbon market will grow in 2012 and then fall in 2013. According to analysis by Thomson Reuters Point Carbon, despite depressed prices, the volume of carbon traded globally will grow by 13 percent in 2012, reaching 9.5 Gt CO2e.