U.S. States & Regions

States and regions across the country are adopting climate policies, including the development of regional greenhouse gas reduction markets, the creation of state and local climate action and adaptation plans, and increasing renewable energy generation. Read More
 

California Carbon Markets Seminar

Promoted in Energy Efficiency section: 
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Kyle Aarons, senior fellow, speaks at a one-day seminar on California's carbon markets.

Kyle Aarons speaks at a one-day program in San Francisco intended to provide participants with an in-depth examination of how the California carbon markets are developing and how potential long-term goals and federal regulation are impacting the market.

Title: California Carbon Markets: Markets, policy and legal dynamics

Date: Thursday, June 26

Time: 8 a.m. - 5 p.m., PDT

Location: Marriott Union Square in San Francisco, CA

Pricing carbon - What are the options?

Judging from the climate policy debate in Washington, one might conclude that carbon pricing is only a concept, or something being tried in Europe.

But in fact, 10 U.S. states (California and the Northeast states in the Regional Greenhouse Gas Initiative) have carbon trading programs. That means more than a quarter of the U.S. population lives in a state with a price on carbon. And a growing number of nations and provinces around the globe are turning to carbon pricing to cost-effectively reduce greenhouse gas emissions and encourage energy innovation.

Over the years, C2ES has closely examined the many ways available to price carbon, including a cap-and-trade system, an emissions tax, and a clean energy standard with tradable credits.

The State of the Climate

As President Barack Obama prepares to deliver his State of the Union address, we believe it’s a good time to take a look at the state of our climate: the growing impacts of climate change, recent progress in reducing U.S. emissions, and further steps we can take to protect the climate and ourselves.

The consequences of rising emissions are serious. The U.S. average temperature has increased by about 1.5°F since 1895 with 80 percent of this increase occurring since 1980, according to the draft National Climate Assessment. Greenhouse gases could raise temperatures 2° to 4°F in most areas of the United States over the next few decades, bringing significant changes to local climates and ecosystems.

Regional Greenhouse Gas Initiative (RGGI)

Regional Greenhouse Gas Initiative (RGGI)

December 2013

by Lucas Bifera

Download the full report (PDF)

The Regional Greenhouse Gas Initiative (RGGI) was the first mandatory cap-and-trade program in the United States to limit carbon dioxide (CO2) from the power sector. It consists of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. RGGI was established in 2005, and administered its first auction of CO2 emissions allowances in 2008. By 2020, the RGGI CO2 cap is projected to contribute to a 45 percent reduction in the region’s annual power-sector CO2 emissions from 2005 levels, or between 80 and 90 million tons of CO2. RGGI requires fossil fuel power plants over 25 megawatts in participating states to obtain an allowance for each ton of CO2 emitted annually. Power plants within the region may comply with the cap by purchasing allowances from quarterly auctions, other generators within the region, or offset projects.

 
This brief provides an overview of RGGI's history and highlights the initiative's major policy provisions, including those taking effect at the beginning of 2014.

 

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California marks first anniversary of cap-and-trade

In the year since California launched the nation’s largest greenhouse gas cap-and-trade program, the state has proven that climate change action can be led by states and can even spread across national borders.

Under a cap-and-trade system, companies must hold enough emission allowances to cover their emissions, and are free to buy and sell allowances on the open market. Since California held its first auction of carbon allowance credits on Nov. 14, 2012, the California Air Resources Board (CARB) has auctioned roughly 64.4 million allowances valued at $780 million. Through the smooth operation of its auctions and sales of 100 percent of 2013 allowances to date, California has demonstrated its capacity to successfully administer a cap-and-trade program.

California does not have the first emissions trading program in the United States, although it’s certainly the most ambitious. The multi-state Regional Greenhouse Gas Initiative (RGGI) was the pioneer, but California’s cap-and-trade program is more substantial due both to the size of state’s economy and the number of sectors covered. By 2015, California’s program will expand to be about twice as large as RGGI.

Pacific Coast Pact Ushers in Climate Policy Alignment

Promoted in Energy Efficiency section: 
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The leaders of California, Oregon, Washington, and British Columbia have agreed to promote policies and regulations to reduce greenhouse gas emissions and foster a low-carbon economy.

The Pacific Coast Action Plan on Climate and Energy they signed Oct. 28 represents a nonbinding commitment to align regulations and market-based measures in each jurisdiction. The plan promotes clean energy deployment, carbon pricing, revised greenhouse gas reduction targets, research on ocean acidification, and low-carbon transportation. Several provisions highlight the need for regional cooperation to reduce greenhouse gas emissions, such as those supportive of a high-speed regional rail line and an integrated electrical grid. Finally, the plan calls for a coordinated approach to U.S. and international climate negotiations, and each jurisdiction has agreed to participate in a subnational coalition to secure a broader climate agreement at Conference of Parties to the UNFCCC in Paris in 2015.

The collective size of the parties to this agreement should send a powerful signal that state and provincial governments are willing and able to address climate change. The agreement was developed through the Pacific Coast Collaborative (PCC), which also includes Alaska. The PCC has a population of 53 million and a combined gross domestic product of $2.8 trillion. If it were a country, the PCC would have the fifth largest economy in the world.

Since the agreement is nonbinding, legislative and executive action is needed for real progress to be made. To date, the parties have made varying levels of progress in climate and clean energy policy. British Columbia has had a revenue-neutral carbon tax in place since 2008, as well as a clean fuel standard for transportation. California has been using a variety of policy tools to fight carbon emissions, especially since the passage of its Global Warming Solutions Act in 2006. One element, the cap-and-trade system, has imposed a price on carbon since the beginning of 2013. Oregon and Washington have agreed to put a price on carbon, but each will require new laws to do so. Legislative efforts in both states to put a price on carbon failed in 2009, but both governors are making a renewed push. Governor Inslee in Washington has directed a working group of state legislators to propose carbon-trading legislation by December 2013. In Oregon, Governor Kitzhaber’s administration has been working to implement its 2012 10-Year Energy Action Plan, which includes the state’s greenhouse gas goals.

Additional Resources
C2ES: California Cap and Trade
Pacific Coast Collaborative: Home Page
LA Times: Gov. Jerry Brown signs clean energy pact with two states, Canadian province
AP: West Coast States and BC to Link Climate Policies

Proud of what we've done, but there's still more to accomplish

When I founded a new nonprofit organization 15 years ago, the United States and the world urgently needed practical solutions to our energy and climate challenges. That need has only grown more urgent.

Earlier today, I announced my plans to step aside as the President of the Center for Climate and Energy Solutions (C2ES) once my successor is on board. As I look back, I find we have come a long way. That said, any honest assessment of our progress to date in addressing one of this century’s paramount challenges must conclude that we have much, much further to go.

When our organization, then named the Pew Center for Global Climate Change, first launched in 1998, 63 percent of the world’s electricity generation came from fossil fuels. Incredibly, that number is even higher today – 67 percent. The concentration of carbon dioxide in the atmosphere, the main driver of climate change, is also higher than it was then – in fact, at its highest level in more than 2 million years.

Scientists around the globe have just reaffirmed with greater certainty than ever that human activity is warming the planet and threatening to irreversibly alter our climate. Climate change is no longer a future possibility. It is a here-and-now reality. It’s leading to more frequent and intense heat waves, higher sea levels, and more severe droughts, wildfires, and downpours.

We at C2ES have believed from the start that the most effective, efficient way to reduce greenhouse gas emissions and spur the innovation needed to achieve a low-carbon economy is to put a price on carbon. It’s a path that a growing number of countries, states, and even cities are taking.

State Policy Actions to Overcome Barriers to Carbon Capture and Sequestration and Enhanced Oil Recovery

State Policy Actions to Overcome Barriers to Carbon Capture and Sequestration and Enhanced Oil Recovery

September 2013

by Patrick Falwell

Download the full report (PDF)

The development of Carbon Capture and Sequestration (CCS) and Enhanced Oil Recovery with Carbon Dioxide (CO2-EOR) projects faces a wide range of barriers, but state-level policy can help overcome many of these challenges. In addition to establishing a regulatory framework for CCS and CO2-EOR projects, states can provide incentives, financial or nonfinancial, to promote the development of CCS and CO2-EOR. So far, states have adopted a diversity of policies that meet local expectations and needs. Additional state policies have been proposed, but not yet adopted.
 
This paper, developed through the Sequestration Working Group of North America 2050, lists the key regulatory and economic barriers CCS and CO2-EOR projects must overcome, and lists examples of existing or proposed state-level policies to help in addressing each.
 

 

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Key Considerations for Industrial Benchmarking in Theory and Practice

Key Considerations for Industrial Benchmarking in Theory and Practice

September 2013

by Kyle Aarons

Download the full report (PDF)

The industrial sector is responsible for 20 percent of the nation's energy consumption and greenhouse gas emissions. Benchmarking is used in a variety of applications to improve the efficiency of industrial facilities and therefore bring emissions down. In this context, benchmarking refers to developing and using metrics to compare the energy or emissions intensity of industrial facilities. Benchmarks are primarily used to compare facilities within the same sector, but can also be used to identify best practices across sectors where common process units, such as boilers, are used. Policymakers can use benchmarking for a variety of purposes, including setting emissions standards, recognizing leading facilities, promoting information sharing, or allocating emission credits in a cap-and-trade program.

This paper, developed through the Industry Working Group of North America 2050, is intended to encourage consistency in benchmarking methodology across programs within a single jurisdiction, as well as across jurisdictions. When facilities are benchmarked using a consistent methodology, it is possible to identify best practices as well as opportunities for improvement across sectors and jurisdictions. For example, two paper mills in neighboring states will only be able to compare their performance if both states use the same data collection methods and metrics. To encourage such consistency, this paper defines and explains key issues that arise when policymakers establish a benchmarking program. It also includes guiding principles recommended by the Working Group based on a review of benchmarking literature and successful programs.

 

 

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