Selected category: Cap and trade

As the Saying Goes, No News is Good News

rp_KHK-picture-200x300.jpgEvery year at your annual checkup, the doctor measures your blood pressure, listens to your heart, and asks you to take deep breathes while moving around her stethoscope. Through these tests, your doctor is gaining insight into your overall physical health and monitoring for anything unusual. Typically, no news is good news when it comes to this annual physical. The same goes for California’s cap-and-trade carbon market, which has been up and running smoothly for the past two and a half years.

Instead of annual check-ups, California’s cap-and-trade program has quarterly auctions – the results of which tell us a lot about the health of the overall program and the progress the state has made towards its greenhouse gas reduction targets. Consistent and stable results from one auction to the next are a positive indication that the state has a functioning, well-oiled program. In other words, no news is good news.

Last Tuesday, the California Air Resources Board (CARB), in partnership with the environmental ministry of the Canadian Province of Quebec (MDDELCC), held one such quarterly auction for cap-and-trade carbon allowances, during which individuals and companies had the opportunity to bid for a total of approximately 83.9 million allowances. Today, CARB and MDDELCC released the results and they reveal yet another successful sale of allowances to the market. Read More »

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From Sea to Shining Sea: Cap-and-trade Programs Showing Success on Both Coasts

rp_KHK-picture-200x300.jpgWhen the preliminary plans for California’s cap-and-trade program were first introduced in 2010, it was quickly regarded as a groundbreaking policy due to its stringency, size, and scope. California was the ninth largest economy in the world – it has now jumped to eighth – and the Golden State’s program would soon implement the first economy-wide cap on greenhouse gas pollution in the country. But, it was not the first cap-and-trade program in the United States. In fact, ten states in the northeast had implemented the Regional Greenhouse Gas Initiative (RGGI) in 2008. Like California’s program, the RGGI system places a mandatory cap on greenhouse gas emissions and sets a corresponding price on carbon, but covering only the electricity sector. Despite the difference in scope and location of these two programs, they are both demonstrating that carbon pricing through cap-and-trade is an effective way to decrease harmful greenhouse gas pollution while allowing the economy to grow.

A new report released this past Wednesday by the Acadia Center digs into the most recent data out of the RGGI system. According to the Acadia analysis, the RGGI states have decreased their emissions by 35 percent since the start of the program, while emissions from the 40 states unregulated by a cap only decreased by 12 percent over the same period. At the same time as emissions dropped, the RGGI state economies grew by 21 percent as compared to the non-capped states, which only saw an 18 percent growth in their economies. California has similarly been able to grow its economy impressively while implementing an aggressive cap on emissions. During the first year of the program, the Golden State moved from ninth to eight largest economy in the world, grew its GDP faster than the national average, and decreased capped emissions by four percent. Read More »

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California’s “Grand Experiment” in Climate Policy is Working

jorge-mardridSometimes we need to look back in order to see the road forward. Whenever I reflect on the success of California’s climate policies, I like to hop in my time machine and dial it all the way back to ancient history – circa 2010 – when I was a young staffer in Washington D.C. fresh out of grad school with big policy dreams and an even bigger student debt.

For climate advocates, they were the best of times, which quickly became the worst of times. In 2010 the Senate was considering a federal climate bill to finally reign in the carbon pollution driving climate change, while jump-starting a clean energy economy to help pull us out of the worst economic downturn since the Great Depression. Visions of hope and change ran high.

But as history goes, the bill failed. Despite different accounts of how the story went down, all agree those were some dark days for the climate movement.

I was there to see it firsthand, and as dreams of big climate policy started to crumble, many advocates held on to one thought to keep us going: “At least we have California…” Read More »

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California Leaders See Climate Action as a Winning Political Issue

567465036_2f33f6506e_bIt’s always inspiring to see people stand up and fight for issues that matter to them. In our world, when politics can at times seem petty or backwards, it’s especially uplifting to see politicians do this. And that’s exactly what’s happening inside California’s state capitol.

The three most powerful political leaders in the state – Governor Brown, Senate President Pro Tem Kevin de León, and Assembly Speaker Toni Atkins – are moving in lockstep to enact an ambitious long-term climate and clean energy agenda. Yesterday, we witnessed a major demonstration of that political leadership when the pro tem and speaker marshalled support to move fundamental pieces of legislation through a key part of the lawmaking process – passing bills through their respective houses of origin.

The bills currently under consideration put in place a climate pollution reduction target of 80 percent below 1990 levels by 2050 and reaffirm the ongoing role of market-mechanisms like cap-and-trade in California. They accomplish this while also codifying the governor’s goals to meet half of our energy demand with renewable energy, double energy efficiency in existing buildings, cut our harmful petroleum addiction in half, and reduce climate pollution 40 percent below 1990 levels all by 2030. Read More »

Also posted in Clean Energy, Climate, Energy, Energy Efficiency, General, Global Warming Solutions Act: AB 32, Politics| Read 1 Response

Results: The Bright Side of Getting Into a Routine

By: Erica Morehouse, Senior Attorney, and Katie Hsia-Kiung, High Meadows Research Fellow

1440893210_4bf8520f5c_zWhat do we call regularly occurring activities? A routine. Which, let’s face it, can sometimes feel tired and uninteresting. But other times, getting into a routine can mean good things. When you get an all-clear at a check-up with the doctor or dentist, you’re not disappointed, right? Well, here’s another example of a smooth routine: as of May 28, we’ve now chalked up 11 auctions that have taken place as part of California’s cap-and-trade program. And the latest results tell us yet again that a good routine is just what the doctor ordered.

The auction results released today reflect a stable and healthy carbon market, in line with results we’ve seen consistently over several of the past quarterly auctions. (Click here for background on how the auctions work under cap-and-trade). One hundred percent of the allowances offered – which can be used for compliance as early as this year – were sold in the current auction, at a price of $12.29, 19 cents above the minimum floor price set by the California Air Resources Board (CARB). This is only eight cents above the price per allowance seen at the last auction, and the lack of any significant price movement from auction to auction is indicative of the stability and maturity of the market. It also shows that companies are becoming more comfortable with the requirements of the cap-and-trade regulation. To date, none of the current vintage allowances offered in the California auctions have gone unsold.

Read More »

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Moms and Parents Gather in Sacramento to Show Support for Climate and Clean Energy Action

Assemblymember Lorena Gonzalez with Mama Summit participants

Assemblymember Lorena Gonzalez with Mama Summit participants

Who among us has not felt the power of a mom? My mom was one of the hardest-working women I’ve ever known, yet she still found the time to do so much for me. So when moms take on the role of advocates and activists, watch out.

Last week, moms in California showed up big time. And as the lead organizer for that event, I’m here to give you a birds-eye view of what happens when moms decide to raise their voices.

On Thursday, May 21, over 40 mothers, parents, grandparents, and supporters from across California gathered in Sacramento at the state capitol building for our Mamma Summit California. The Mamma Summit is part of a series of events hosted by Moms Clean Air Force (MCAF), an organization which encourages and enables moms and parents to advocate for climate action for the health and future of their families. We at MCAF teamed up with Environmental Defense Fund, Climate Parents, the American Lung Association in California, The Greenlining Institute, and California Interfaith Power and Light to put together a full day of advocacy for participants.

Our group of moms, motivated to make their voices heard, showed up bright and early to the Capitol.  They came to tell lawmakers that they expect California to continue to lead on fighting climate change and supporting clean energy to protect their air and keep their kids healthy and thriving. We were honored that the Senate Pro Tem Kevin de León, architect of this year’s Senate climate package on which the Summit’s advocacy was based, greeted us first thing in the morning to thank the parents for their resolve. Senators Fran Pavley, mother in her own right of California’s climate leadership, and Richard Pan, staunch defender of children’s health, also came by to thank us for being there and reinforce the importance of our presence. Read More »

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