Climate 411

California-Quebec market continues to thrive

California cap and trade, renewable energy

Alta Wind Energy Center, California, Photo source: Steve Boland/flickr

February’s joint California-Quebec cap-and-trade auction demonstrated again that the market is strong. Despite uncertainty over PG&E’s position in the aftermath of its bankruptcy filing last month, all current and two-thirds of future allowances sold.

February’s auction by the numbers:

  • All 80,847,404 current allowances sold, including previously unsold allowances and consigned allowances from utilities like PG&E. This sale cleared at $15.73, 11 cents above the floor price of $15.62.
  • 5,983,000 of the 9,038,000 future vintage allowances offered also sold at the floor price. These allowances are not available for use until 2022. This is the first auction since the floor price increased to $15.62, so businesses have three more auctions at this price floor to purchase allowances that cannot be used for three more years.
  • Approximately $853,508,096 was raised for the Greenhouse Gas Reduction Fund which the state uses to support climate investments in frontline communities, improvements in local air quality, and other projects to further reduce greenhouse gas emissions.

Read More »

Also posted in Carbon Markets / Read 1 Response

Trump administration ends talks with California, presses ahead with Clean Car Standards rollback

EDF attorney Erin Murphy co-authored this post 

The Trump administration announced today that it will end negotiations with California and press ahead with its attempts to roll back America’s successful Clean Car Standards.

Rolling back the Clean Car Standards would increase pollution and raise costs for American families. The administration’s justification for weakening these safeguards is based on a deeply flawed and biased analysis that contradicts the technical progress the auto industry is making to reduce pollution. An earlier expose highlighted the roll of the oil industry in pushing and benefiting from the administration’s rollback.

State leadership under attack

The administration says it is pressing ahead with its attacks on long-standing state authority to enforce tougher standards than those implemented at the federal level.  Read More »

Also posted in Cars and Pollution, Clean Air Act, EPA litgation, Jobs, News, Partners for Change, Policy / Read 1 Response

Full compliance, declining emissions, robust auction: It’s November in California’s cap-and-trade program

This post was co-authored by Maureen Lackner

Golden Gate Bridge Shutterstock

Golden Gate Bridge. © CAN BALCIOGLU / Shutterstock Images.

Today’s strong California-Quebec November 2018 carbon market auction results are the continuation of a month of good news about California’s landmark climate program. Cap-and-trade compliance is at 100% and emissions are falling, demonstrating that addressing climate change is an integral part of doing business in the Golden State.

November’s auction by the numbers

  • All 78,825,717 current allowances sold, clearing at $15.31, 78 cents above the $14.53 price floor and 26 cents above the August auction. This is the final auction before the floor price has its annual increase.
  • All of the 9,401,500 future vintage allowances offered sold at $15.33, 43 cents higher than in August. The current floor price of $14.53 will also increase for future allowances in the next auction.
  • An estimated $813,013,694 was raised for California’s Greenhouse Gas Reduction Fund, which will go to support climate investments across the state and further reduce greenhouse gas and local air pollution.

California’s market is strong & confidence is high

One critical data point showing the strength of this market is that the California Air Resources Board (CARB) reported 100% compliance from all entities covered by cap and trade for the three-year compliance period from 2015 to 2017. California businesses understand the program and know how to make it part of their business plan.

At the same time, greenhouse gas (GHG) emissions are falling, which is the key metric of program success. Read More »

Also posted in Carbon Markets / Comments are closed

Climate scare tactics won’t work in California

Some polluters and their allies are rolling out an old and tired playbook in Sacramento. California is ahead of schedule in curbing climate pollution and the economy is booming. Yet alarmism persists. These latest scare tactics are focused on one particular provision of the state’s cap-and-trade program: the level of the “price ceiling”. The price ceiling is an emergency provision that is intended to ensure that prices polluters have to pay per ton of pollution don’t reach above unexpectedly high levels.

The California Air Resources Board (CARB) is currently working to update the cap-and-trade program based on direction the Legislature gave in 2017 to extend it out to 2030. CARB will consider proposed amendments to the program today with passage of the amendments expected after a second consideration in January.

The future of climate action in California is optimism and transformation, not fear and anger

Those who look only at doomsday scenarios are mixing farfetched fearmongering with a dose of outrage by boiling this complex policy decision down to an oversimplified estimate of how much Californians might have to pay in the worst possible scenario in 2030. But fear and anger aren’t what California is about (whatever your political leanings). California is transforming its economy to a cleaner and more prosperous version of itself. After the great recession the economy recovered and grew, but carbon pollution did not.

Read More »

Also posted in Carbon Markets / Comments are closed

Four reasons why the California Air Resources Board should endorse the California Tropical Forest Standard

Tropical forests are key to halting global climate change. Destruction of these forests releases 14 to 19 percent of global greenhouse gas emissions each year, more than the emissions from all the world’s cars, trucks, and ships combined. Tropical forests also house an astounding array of plants and animals and provide livelihoods and the backbone of culture for indigenous and forest people around the world.

That’s why California’s proposed Tropical Forest Standard (TFS) is so important. It sets up a framework for carbon markets to credit greenhouse gas emission reductions to incentivize the protection of tropical forests, and sets the highest bar for social and environmental safeguards seen to date.

California is known as a global climate leader, but the most significant step the state can take right now is to endorse the Tropical Forest Standard to help avert climate catastrophe, protect biodiversity, and support the indigenous communities who depend on tropical forests. Watch the video “California and the Amazon are more interconnected than you might think.”

We have a great opportunity to move the needle on tropical deforestation

The TFS would demonstrate what the state views as a legitimate standard by which to gauge any jurisdiction’s forest carbon program, and the emission reduction credits they could achieve for compliance carbon markets. It also lays out key elements that California would require of any program to consider in a potential future linkage.

The TFS sends the critical signal: think big, address emissions at a large scale, and develop partnerships with communities to ensure that the program provides benefits to those who are managing and protecting the forests. Now is an important time to influence other carbon markets as well as jurisdictions that are designing programs to address forest emissions.

Read More »

Also posted in Forest protection / Comments are closed

The big news on forests you may have missed during the Global Climate Action Summit

Last week marked another significant achievement in California’s climate leadership, as the state hosted side-by-side global gatherings of the Global Climate Action Summit (GCAS), and the tenth annual meeting of the Governors’ Climate and Forests Task Force, a multi-lateral organization of subnational jurisdictions, which California helped launch in 2008.

But California doesn’t just add to the notches in its environmental leadership by hosting meetings, drawing celebrities, and showcasing pledges.

It’s the work that underlies it all – years, even decades in the making – that gives California the heft to pull off these feats.

One of California’s real accomplishments that was overshadowed – undeservedly – by the summit was the release of the California Tropical Forest Standard, which would lay the groundwork to help protect tropical forests around the world by leveraging the state’s climate program and its global vision.

Read More »

Also posted in Forest protection / Read 1 Response