rate-based trading

Secondary Carbon Markets

Secondary Carbon Markets

April 2016

Download the Fact Sheet (PDF)

Many state regulators are considering carbon trading as a compliance option with the Clean Power Plan. An important part of carbon trading is the secondary carbon market—the market among private sector buyers and sellers that arises to provide more efficient price discovery, price-hedging opportunities, and satisfy compliance demand. This fact sheet provides a brief overview of the role of different types of secondary market participants and key policy choices that need to be made to allow secondary markets under the Clean Power Plan.

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Rate-Based Compliance Under the Clean Power Plan

Rate-Based Compliance Under the Clean Power Plan

January 2016

Download the Fact Sheet (PDF)

The Clean Power Plan gives states the option to comply via either a rate-based or a mass-based approach. Ten states currently operate mass-based greenhouse gas reduction programs, and many more participate in mass-based programs to reduce other pollutants (e.g., sulfur dioxide) that are administered by the U.S. Environmental Protection Agency.
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