Climate 411

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

By Caroline Jones / 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 / 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:

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

What Washington state can learn from California’s decade of climate investments

By Guest Author / Published: June 30, 2023

This blog was authored by Delia Novak, Western States Climate Policy Intern, U.S. Region.

Since the launch of Washington’s cap-and-invest program in January, the state has raised over $850 million in revenue through two consecutive, sold-out auctions under the program. These cap-and-invest auctions provide critical funding for the clean energy and climate resilience projects that will lock in a swift transition to a healthier, safer climate future — with at least 35% of funding used to benefit communities that are overburdened by air pollution and who will be impacted first and worst by the climate crisis if we fail to act.

Last month, Governor Inslee signed Washington’s final budget for 2023-2025, which will make use of a whopping $2 billion in funding from the Climate Commitment Act (CCA), with highlights including $138 million for electric vehicle charging infrastructure, $123 million for solar and storage projects, $120 million for zero emission medium and heavy-duty vehicles, and $163 million for home electrification rebates. By making decarbonization more affordable and slashing climate-warming emissions, this funding is already an impressive indication of the opportunities and investment that the cap-and-invest proceeds will deliver to communities across Washington.

But Washington’s climate investments are just getting started. In the meantime, we can look to California’s decade of climate investments to understand the important benefits that Washington’s cap-and-invest program can provide for its communities.

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

California and Quebec have a major opportunity to raise the ambition of their linked carbon market

By Caroline Jones / Published: June 12, 2023

When the California Air Resources Board (CARB) finalized its Scoping Plan last year, it marked a critical milestone in charting an ambitious – but achievable – path toward a safer, climate future for communities across the state. Now, it’s time for CARB to put that plan into action.

The good news is that air regulators are taking a key step forward with a new joint workshop between California and Quebec on June 14 that will focus on potential amendments to the linked cap-and-trade program. The workshop will discuss the status of the current regulation and, critically, the scope of potential updates to bring the regulation in line with CARB’s 2022 Scoping Plan, which sets a goal of 48% emissions reductions by 2030 – an essential target to ensure California reaches its long-term reduction goals.

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

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