Climate 411

A decade in, California’s cap-and-trade has slashed climate pollution and generated investments — where does it go from here?

By Caroline Jones / Bio / Published: November 15, 2023

This year, California marked the 10^th anniversary of its landmark cap-and-trade program, and the Golden State has good reason to celebrate: California saw reduced year-on-year emissions from nearly every sector covered by the program. On top of delivering on critical emissions reductions, cap-and-trade has generated revenue resulting in $9.3 billion implemented through California Climate Investments programs that contribute to emission reductions, support climate equity and improve public health outcomes. And yet, there’s still much more work to be done to ensure that this program delivers reductions at the scale and speed required to avert the worst impacts of climate change while meaningfully supporting overburdened communities.

With a rulemaking in progress to make further necessary improvements to cap-and-trade, here’s what you need to know about what’s coming up through the end of the year and what to pay attention to in the new year.

Also posted in Carbon Markets, Cities and states, Energy, Greenhouse Gas Emissions, Policy / Comments are closed

Washington state’s carbon market continues to raise major investments, as state leaders consider linking to California-Quebec market

By Caroline Jones / Bio / Published: September 6, 2023

Results were released today for Washington’s third quarterly cap-and-invest auction, which was held on August 30th. The results from this sold-out auction continue to demonstrate strong demand for allowances in this program, which has brought in significant revenue for the state of Washington to reinvest in its communities. These results follow on two previous sold-out quarterly auctions, as well as an auction from the Allowance Price Containment Reserve last month which raised an additional $62,491,660 while functioning as a market stabilizing feature. In total, these auctions have generated $919,564,777 for Washington communities.

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Health, Policy / Read 1 Response

Washington state’s cap-and-invest program demonstrates cost containment features with special August auction

By Caroline Jones / Bio / Published: August 17, 2023

Yesterday, the Washington State Department of Ecology (Ecology) released the results from Washington’s first Allowance Price Containment Reserve (APCR) auction, held on August 9th. At this auction, all 1,054,000 of the available APCR allowances were sold at the two APCR tier prices of $51.90 and $66.68, with 527,000 allowances available at each price tier. This auction, along with two previous sold-out cap-and-invest auctions, shows continued strong demand for allowances under Washington’s cap-and-invest program and demonstrates the important role that an APCR can play in building predictability and stability into allowances prices.

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Health, News, Policy / Comments are closed

4 ways California should strengthen its cap-and-trade program

By Katie Schneer / Published: August 3, 2023

This blog was co-authored by Mary Catherine Hanafee LaPlante, Intern, U.S. Climate Policy

As the hottest summer on record scorches the state, California leaders are working to tackle the impacts of climate change head-on by strengthening an essential tool in their climate policy toolbox: the state’s cap-and-trade program.

Last year, the California Air Resources Board (CARB) finalized its Scoping Plan for Achieving Carbon Neutrality which recognized the importance of accelerating action this decade to put the state on track to achieve net-zero emissions by 2045 as well as 85% reductions below the 1990 level. Specifically, the Scoping Plan highlights that California needs to exceed its near-term goal and achieve 48% reductions below 1990 by 2030.

To reach these critical goals, CARB is evaluating potential amendments to its cap-and-trade program. With two workshops on the books, CARB is already making significant strides towards fortifying the program.

Here are four key opportunities for the state to strengthen the cap-and-trade program:

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Health, Policy / Comments are closed

Clearing the Air: California’s Leadership on Clean Trucks

By Alice Henderson / Bio / Published: July 28, 2023

A FedEx eStar electric truck in Los Angeles. Photo: Mr.choppers

This blog is co-authored by NRDC’s Britt Carmon, Guillermo A. Ortiz, and David Pettit. It originally appeared here.

California has long grappled with the challenge of improving its air quality, which ranks as the worst in the country. Heavy-duty diesel trucks, which are significant contributors to air and climate pollution, make it difficult for the state to achieve nationwide air quality standards. As such, it should be no surprise that the transportation sector remains the largest source of greenhouse gas emissions, not only in California, but nationwide as well. However, the scale of the problem is not insurmountable. California has also been at the forefront of regulating tailpipe and motor vehicle greenhouse gas emissions and has made steady progress towards cleaner air for decades.

Also posted in Cars and Pollution, Cities and states, Economics, Energy, Green Jobs, Greenhouse Gas Emissions, Health, Innovation, Jobs, News, Partners for Change, Policy / Comments are closed

Leadership states can drive U.S. climate progress forward, if governors meet their commitments

By Katie Schneer / Published: July 13, 2023

This blog was co-authored by Alex DeGolia, Director, U.S. Climate.

With historic federal climate investments in law, states are now in the driver’s seat to leverage this funding to drive U.S. climate progress forward — adopting bold policies of their own that limit pollution, boost jobs and bring down energy costs.

States that have made climate commitments in line with U.S. goals under the Paris Agreement are in the best position to make a significant impact in cutting U.S. emissions. A new EDF report analyzes state emissions data from Rhodium and projected emission reductions from federal investments to determine how much closer these states could bring the country to its goals.

We find that leadership states could shrink the remaining gap to the U.S. national 2030 target by nearly half, if they adopt ambitious and comprehensive policies that achieve their own emissions targets.

To get there, governors and state leaders must shift policy action into high gear, as our analysis reveals these states are currently projected to collectively fall well short of their climate commitments.

The urgency — and the opportunity — for states to move from climate pledges to policy has never been greater. Here’s what you need to know about the analysis: