States will have tremendous flexibility to choose how to reduce carbon emissions under the Clean Power Plan. One idea states are exploring is putting a price on carbon. The first C2ES Solutions Forum — held on April 15, 2015 — brought together legal and economic experts, state environmental directors, and business leaders to explore the potential use of market mechanisms to reduce these damaging emissions efficiently and cost-effectively.
For more information about the C2ES Solutions Forum, see: http://www.c2es.org/initiatives/solutions-forum
Key insights and highlights from the event on carbon pricing and clean power include:
- Most economists agree that the most efficient way to address climate change is to put a price on carbon.
- The U.S. Environmental Protection Agency (EPA) has given states tremendous flexibility to determine the best way to achieve emission targets.
- Virtually every state is already engaged in some activity that reduces emissions.
- Market-based options available under the proposed Clean Power Plan go beyond creating or joining a cap-and-trade program or instituting a carbon tax.
- States and businesses generally agree that market mechanisms are a proven, least-cost way to reduce emissions.
- States believe support from the business community will be essential to adopting market-based options.
- State and business leaders recognize the need to talk to one another about the best way to reduce emissions.
- States are concerned about having enough time to develop market-based policies.
- State and company representatives see a role for EPA to help states after the Clean Power Plan is finalized.
C2ES will continue the conversation with states and businesses to share insights and innovative ideas that will help us get to a clean energy future. Our second Solutions Forum on May 18 will explore improving energy efficiency, which reduces emissions, through information and communication technologies. Our third event on June 25 will examine how to finance clean energy technology and infrastructure.