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.

Obama Proposes Oil Tax and Clean Energy Infrastructure Investments

President Obama has recently proposed an oil tax and a clean energy infrastructure investment plan that would create a “more integrated, sophisticated and sustainable transportation sector." The proposal is part of a budget request that calls for annual spending of $32 billion and it will be paid for with a $10 a barrel oil tax. The ten year 320 billion is designed to finance a 21st century clean energy infrastructure in the US. This includes annual spending of $20 billion for national transportation initiatives, $10 billion in for cities and states and $2.4 billion for green vehicle research.

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.

Webinar - California Cap and Trade Program: Everything Businesses Need to Know

The one hour complimentary webinar on California's Cap and Trade Program will take place on Wednesday, June 4, 2014 at 2pm EDT. It will provide an in-depth look at how California's carbon market works and show you what you need to know to craft a cogent compliance strategy.

As part of California’s Assembly Bill 32, the California cap-and-trade program seeks to reduce greenhouse gas emissions to 1990 levels. By placing a hard cap on emissions and setting up a market based mechanism, California has placed a price on carbon emissions covered by the program.

Companies covered by the cap-and-trade program must purchase California Carbon Allowances (CCAs) to cover their emissions of carbon dioxide equivalent (CO2e). Companies can also use offset credits as a lower cost alternative to CCAs for compliance.

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.

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.

European Parliament Revives Hopes for Cap-and-Trade

After a failed attempt in April, the European Parliament succeeded in passing a measure early in July to address the low price of the EU’s emissions trading system. Emissions prices in the $72 billion cap-and-trade program had lost more than 70 percent in the past four years. The low price of Europe’s carbon market is attributable to the prolonged recession of 2008 and the glut of permits that cut the price to as low as about 2.75 euros a ton.

Europe's carbon markets are essential to the continent's strategy to reduce GHGs and combat climate change. Cap-and-trade systems gradually make polluting more expensive thereby using market forces to drive the adoption of greener technologies and the reduction in carbon emissions.

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.”

Free Webinar: The Carbon Tax & Your Business

GreenBizCheck will be holding a free webinar on 29 November at 11 AM AEST. This webinar will help business owners gain a better understanding of the carbon tax and how it will affect their business.

California is Leading the US with a Cap-and-Trade System

California, a leader in efforts to combat climate change, has become the first US state to implement cap-and-trade to regulate greenhouse gas emissions. The system will place a price tag on carbon emissions and allow the state's industries to trade carbon credits. The system will provide financial incentives to companies in order to curb greenhouse-gas emissions. The cap-and-trade program is scheduled to start in 2013 and it aims to slash emissions to 1990 levels by 2020.

Canadians Support Efforts to Combat Climate Change

Unlike their Conservative federal leadership, Canadians support efforts on climate change. According to a joint study released in April 2011, Canadians are more likely to believe in the veracity of climate change then Americans.

The study also found Canadians are more willing than their friends to the south to pay for energy from renewable sources. A majority of Canadians said they would support a carbon tax or cap-and-trade scheme, even if it came with a cost of $50 per month in energy expenses.

A report from the Conference Board of Canada indicated that the federal, provincial and municipal levels of government spend a lot money trying to understand the implications of climate change. However, they are inefficient and there is a striking lack of coordination.

The report suggests that Canadians need a carbon pricing scheme like those in place in BC and Quebec.

© 2011, Richard Matthews. All rights reserved.

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