Emissions trading state initiatives

Air Quality and Power Production in the United States Emissions Trading and State-Level Initiatives in the Control of Acid-Producing Emissions, Mercury, and Carbon Dioxide... 

United States Emissions Trading and State-Level Initiatives in the Control of Acid-Producing... 

To assess the prospects for links between North American emissions trading schemes, the next section sets the context by reviewing greenhouse gas emissions and climate change initiatives at the national and state/provincial level in the USA and Canada. The existing and proposed emissions trading schemes are described in Section 3. Overlaps between the national and the state/provincial schemes are discussed in Section 4. Section 5 discusses potential links by US and Canadian schemes with each other and with other schemes. Conclusions are drawn in Section 6. 

Both Canada and the USA have seen the emergence of state and provincial initiatives to establish regional emissions trading schemes (ETS), as well as federal initiatives to establish emissions trading schemes at a national level. This section summarizes those initiatives. 

States and provinces that are partners in the Western Climate Initiative (WCI) have agreed to reduce their greenhouse gas emissions to 15% below their 2005 level by 2020.A recommended design for an emissions trading scheme was released in September 2008 (Western Climate Initiative, 2008). The scheme, to be launched at the start of 2012, will have annual emissions caps and a... 

In addition to the limited unilateral link to the CDM, Canada will consider linking with state, regional or national regulatory-based emissions trading schemes in the USA. Cooperation on emissions trading with Mexico will also be explored. Initially, export of allowances and credits from Canada will not be allowed, so the scope for bilateral links will be limited. The intensity target and price cap (for the first few years) are likely to deter other schemes from establishing a link with the Canadian scheme. 

At least in part, this recommendation has also found its reflection in the ACES bill, which imposes an initial moratorium on state-based emissions trading schemes, but would allow more stringent obligations at the state and regional level after 2017. 

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