Market-Based Strategies

Market-Based Strategies

States will have tremendous flexibility in how they implement the new federal Clean Power Plan, and some are considering market-based approaches.

Some states already have considerable experience, such as the cap-and-trade program in California and the nine-state Regional Greenhouse Gas Initiative, which has helped reduce carbon emissions in the Northeast by 40 percent since 2005 and generated funds to invest in energy efficiency and renewable energy.

At a 2015 C2ES event, there was strong interest in exploring an approach in which states adopt common core elements – such as definitions and measurement and verification processes – so companies could be in a position to trade within and across borders.

C2ES will explore the options and obstacles to using market-based approaches to implement the Clean Power Plan.

Resources

  • Video: C2ES President Bob Perciasepe and Colorado Environment Director Martha Rudolph on E&E TV

Video: Carbon Pricing and Clean Power Solutions Forum