Category Archives: Cap and trade

California Cements Latest Climate Alliance, this Time with Next-Door Neighbor Mexico

It’s been an invigorating few days for anyone looking for meaningful action to combat climate change, and especially for those following California’s global leadership in those efforts.

As a delegate to Governor Jerry Brown’s Trade and Investment Mission to Mexico, I witnessed first-hand California and Mexico sign a Memorandum of Understanding and formally agree to work together on a range of actions to address climate change.

The agreement between Governor Brown and representatives of Mexico’s Ministry of Environment and Natural Resources (SEMARNAT) and Mexico’s National Forestry Commission lays out areas where California and Mexico agree to cooperate and coordinate efforts on addressing climate change, including:

  • Pricing carbon pollution
  • Increasing renewable energy use and development
  • Addressing short-term climate pollutants
  • Cleaning up the transportation sector
  • Reducing emissions from deforestation and forest degradation

A Joint Vision for Low-Carbon Prosperity

It makes perfect sense that Mexico is California’s latest climate change and clean energy ally. After all, the relationship between the two jurisdictions runs deep.  Mexico is California’s largest trading partner, and our cultures and economic interests have undoubtedly been entwined throughout history. Both have much at stake with climate change, and this latest collaboration embraces a shared environmental vision which recognizes that a low-carbon future goes hand-in-hand with economic prosperity. Read More »

Also posted in Clean Energy, Climate, Energy Efficiency, Global Warming Solutions Act: AB 32, Linkage, Low Carbon Fuel Standard | Leave a comment

How Big Data Can Fight Climate Change in Los Angeles

Jorge-MadridYou may be wondering – as I was before we started a project with the UCLA Luskin Center for Innovation over a year ago – “what the heck does Big Data have to do with climate change?”

To start, here’s a piece from Climate Central that exemplifies the new power of big data.

“Big Data allows you to say simple, clear things…to tell people about their climate locally in ways they can understand.”

Through taking information created all around us and applying thoughtful analysis, we can comprehend and unleash it to solve our greatest challenges. For EDF, that means partnering with the country’s top universities and most innovative companies to address the biggest challenge of our time – climate change.

Today we launch the newest version of the Los Angeles Solar & Efficiency Report (LASER), a data-driven mapping tool that can help stakeholders and local leaders understand climate and pollution risks in their own communities. Empowered by this information, they can seek out and maximize available resources to deploy clean energy, reduce climate pollution, and create tens of thousands of much-needed jobs. Read More »

Also posted in Clean Energy, Climate, Engaging Latinos, Jobs | 1 Response

A Major Step to Protect Californians from Gasoline Price Manipulation

Tim O'Connor, EDFYou can’t turn on a TV or radio in California these days without hearing the oil companies and their industry associations complaining that the state can’t afford to move to cleaner fuels and predicting that cutting pollution from the transportation sector will drive up gasoline prices.

What the oil industry’s $56 million political campaign, and even wider reaching ad campaign,  doesn’t say is that if gas prices do go up this year, it is likely to be the oil industry—not clean energy—that’s to blame.

Since 2005, the price of gas in California has fluctuated by an average of $1.16 per gallon, while diesel has fluctuated by $1.01. Year after year, prices at the pump shoot up – yielding significant additional profits for fuel suppliers – then casually drift down back to a point higher than where they started. The phenomenon is so well known, industry insiders call it rockets and feathers.

The oil companies say they don’t cause these fluctuations, but the problem is so severe that Governor Jerry Brown and the state legislature just gave the California Energy Commission $342,000 to investigate and prevent gas price fixing and market manipulation by the industry.

Market domination can lead to price manipulation

Transportation fuel is a concentrated market where a handful of suppliers control a product everyone has to have. Small and large businesses, commuters, soccer moms, motorcycle clubs—pretty much everyone needs the gas and diesel supplied in California by just 22 companies, six of which (Chevron, Tesoro, BP, Phillips 66, Valero and Shell) control 90 percent of the total supply. Read More »

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation | Leave a comment

Does Big Oil Really Care About Vulnerable Communities?

Jorge-MadridThere they go again… with the same lament we always seem to hear from Big Oil lobbyists when it's time to protect public health:

Don't put environmental protections on fuels, because that "will hit low-income and middle-income families the hardest." In other words, if you make us clean up our act, then we'll be forced to raise gas prices, which hurts vulnerable people… You don't want to hurt them, do you?

Hmmm. Do oil companies really care about vulnerable populations like low income people and communities of color? Could it be that they are using these families as a smokescreen for killing environmental protections and protecting their profits? Let's look at the facts and see if we can cut through some of this smoke.

Oil companies are among the most profitable enterprises in the world — last year the "big five" made $93 billion in profits, or $177,000 per minute. Even in my home state of California, which is at the forefront of environmental protections, Chevron is still the largest company by revenue (take that Apple and Facebook!). Many polluters have been claiming for decades that clean air standards will "cause entire industries to collapse," but those dire predictions have never come true. The idea that we have to choose between environmental protection and economic growth has always been a false choice.

Who is really to blame for high gas prices — and who stands to profit from that sick feeling you get when you're fueling your car and the price shoots past $40… $50… $60? Turns out an average vehicle uses $22,000 in gas over its lifetime, $15,000 of which (68 percent) goes right to oil companies. Further, an additional 25 cents in the price per gallon of gas at the pump every three months equals an additional $5 billionin profits for the big five oil companies. Read More »

Also posted in Clean Energy, Climate, Engaging Latinos, Global Warming Solutions Act: AB 32, Jobs, Transportation | Leave a comment

Mapping the California Companies Fueling a Cleaner Future

green roads mapClean energy and clean tech sound exciting, but most people don’t see these businesses as a major part of our economy, especially when traditional fossil fuels rule at the pump.

But thanks to policies like California’s Low Carbon Fuel Standard and cap and trade, more and more businesses are giving us options when we need to get from point A to point B, and they form an increasingly important source of economic growth in the state.  From cars running on used vegetable oil (biodiesel) to cars you can plug into your house, new and exciting innovations are fast coming to market.

The new interactive Green Roads Map that EDF created in partnership with CALSTART, Environmental Entrepreneurs (E2), and the Natural Resources Defense Council, shows that we have many emerging options for our cars and transportation fleets, and that clean transportation is a flourishing industry in California.

The Green Roads Map is more than just a collection of dots- the map presents an important picture of the investors, researchers, producers, and salespeople who are transforming our economy and transportation system today. Read More »

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32, Jobs, Low Carbon Fuel Standard, Transportation | Comments closed

California’s Cap and Trade a Versatile Tool for Environmental Policies

rp_erica-morehouse-287x377-228x3001.jpgGovernor Brown signed a budget last week that lays out for the first time how to invest the millions from California’s landmark cap-and-trade program ($734 million so far). California has shown another way that cap-and-trade is like the Swiss army knife of environmental policies: a versatile tool known for its usefulness and adaptability.

A Multi-faceted Investment Portfolio

California will invest $850 million over the next year to reduce dangerous climate pollution, a portfolio of investments that will benefit almost every part of California’s economy, going to low-carbon and public transportation, weatherization and energy efficient buildings, water efficiency, waste diversion, and natural resources like urban forests. Substantial investments, at least 25% of the total, will be directed to benefit disadvantaged communities most likely to be impacted first, and worst, by climate change.

Research has shown that the green economy is a solid investment since it already grows faster and is more resilient than traditional economic sectors (the San Joaquin Valley saw a 133% growth in employment in seven “green economy” sectors between 1995 and 2010). The budget also creates long-term guidelines for investing in the green economy as the stream of revenue grows in coming years.

Where the Revenue Comes From

California already limits, or “caps,” total carbon pollution from industries like cement manufacturers and food processors, as well as utility companies. Next year, the cap will expand to include transportation fuels and natural gas providers– two of the biggest polluting sectors in the state. The dollars California is investing are generated by holding these polluters accountable for their impact on the environment. Read More »

Also posted in Auction revenue, Climate, Global Warming Solutions Act: AB 32 | 1 Response, comments now closed

To stay at the head of the class, California must focus on 2030 pollution goal

rp_erica-morehouse-287x377-228x3001.jpgTo be a class valedictorian, you can’t get an A on just one or two tests, or even in just the first quarter of a school year; being at the top means a concerted, continuous effort over the long-term.

For California to continue to be at the ‘head of the class’ on climate leadership, it must move forward on setting climate pollution reduction goals through 2030.

AB 32, the state’s landmark climate law, passed in 2006 and established a statewide emissions goal of reducing climate pollution to 1990 levels by 2020. California is well on the way to meeting that goal through a suite of policies, including cap and trade, which puts an absolute limit on this harmful pollution.

California was ahead of the curve, having passed a law in 2006 to stop unlimited climate pollution in the state. And since 2009 — spurred by AB 32 policies and a guarantee of reductions over a decade into the future — venture capital investments in California’s green sectors have grown by over 30 percent.

State legislators in California did not know what the energy landscape would look like in 2020 when they passed AB 32, but they set a goal and the state’s strong policies have helped to drive the growth of low-carbon energy sources around the country. For example, solar power generation in California has almost doubled in the last year, the cost of solar panel nationwide dropped 75% per watt from 2008-2011, and wind power generation has more than tripled in that time. Read More »

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32 | Comments closed

California and Quebec: Friends in Low (Carbon) Places

KHK pictureA crucial feature of the U.S. EPA’s groundbreaking new Clean Power Plan for existing power plants is the flexibility with which states can pick and choose the emission reduction measures that work best for them. Instead of prescribing a silver bullet solution across all fifty states, the new rule allows each state to tailor its policies, resulting in the most cost-effective solution to climate change.

According to EPA Administrator Gina McCarthy, this flexibility can mean collaborating with others in joint programs: “If states don’t want to go it alone, they can hang out with other states and join up with a multi-state market based program, or make new ones.”

For states thinking about cross-border collaborations to comply with the new rule, they can find a promising example in California.

In an announcement today, the California Air Resources Board (CARB) and the Ministry of Sustainable Development, Environment and the Fight against Climate Change (MDDLECC) of Quebec revealed that the two markets are taking the final step in linking their markets with the initiation of joint auctions. The first will be held in November, following a practice auction to be held in August. The practice auction will allow the program regulators, as well as auction participants, to get comfortable with the updated joint auction platform.

Not only is the Golden State leading the way in transitioning to a low-carbon economy ahead of EPA’s recently-announced power plant standards, but California is forging ahead to show that working across state lines on climate policies is possible – and can be productive. Read More »

Also posted in Cap-and-trade auction, Clean Energy, Linkage | Comments closed

EPA Hands Over the Keys with Clean Power Plan, California Already on Cruise Control

rp_dWalker.jpgEPA’s Clean Power Plan, proposed today, is a roadmap for cutting dangerous pollution from power plants, and as with any map, there are many roads to follow. For this journey, states are in the driver’s seat and can steer themselves in the direction most beneficial to their people and to the state’s economy, as long as they show EPA they are staying on the map and ultimately reaching the final destination.

As usual, California got off to a head start, explored the territory, blazed a lot of new trails, and left a number of clues on how states can transition to a lower carbon future, and California’s successes are one proven, potential model for other states to follow. The state’s legacy of clean energy and energy efficiency progress is a big reason the White House and EPA could roll out the most significant national climate change action in U.S. history.

Way back in the mid-1970s, when Governor Jerry Brown did his first tour of duty, California pioneered what remains one of the most effective tools for cutting pollution and saving money:  energy efficiency. The state’s efficiency standards, largely aimed at buildings and appliances, have saved Californians $74 billion and avoided the construction of more than 30 power plants. All those energy savings have translated into California residential electricity bills that are 25% lower than the national average.  What’s more, California produces twice as much economic output per kilowatt hour of electricity usage as the national average.

While energy efficiency has done yeoman’s work pulling costs down, reducing the need for dirty energy, and supercharging the state’s clean energy economy, California has also brought bold approaches to cleaning up its power supply. The California Renewable Portfolio Standard (RPS) requires 33% of all electricity sold in California to come from renewable sources by 2020, the most aggressive of the 29 states with RPS measures on the books. Read More »

Also posted in Clean Energy, Climate, Energy Efficiency, General, Global Warming Solutions Act: AB 32 | 1 Response, comments now closed

Latest Auction Results Show that California’s Cap-and Trade is in Full Swing

KHK pictureThere are certain key fundamentals of swinging a bat that must be mastered before you can hit a home run; proper posture, a strong stance, and good contact with the ball. The last essential step is the follow-through.

In fact, success in nearly everything relies on putting an idea or solution in motion, and then following through to make sure it achieves the goals that it set out to achieve. The same can be said for building a successful cap-and-trade program.

In 2012-2013, California’s cap-and-trade program celebrated a strong launch, during which companies were able to purchase emissions credits through five quarterly auctions and a well-established secondary market. This stretch brought the start of the first compliance period, the first auctions, and the issuance of the first California Air Resources Board-verified offset credits. In 2014, there may not be as many “firsts,” but executing a strong follow-through is as important as a good launch.

Today, the California Air Resources Board (CARB) published the results of the seventh cap-and-trade auction. All current vintage year allowances offered for sale by CARB were purchased, signaling continued confidence in the program. The complete sale of 2014 allowances also demonstrates that some of California’s worst polluters are paying for their emissions.

Bids for 7.8 million more 2014 vintage allowances were placed than could be filled, signifying a competitive current auction. The price for 2014 vintage allowances, which can be used for compliance from now on, was $11.50, which is 16 cents above the minimum floor price of $11.34. Read More »

Also posted in Cap-and-trade auction, Climate, Global Warming Solutions Act: AB 32 | 3 Responses, comments now closed