Climate 411

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

Photo of a solar farm in California

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.

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

Washington state’s second cap-and-invest auction shows strong demand

Photo of Olympic National Park

Photo Credit: Wendy Olsen Photography

Blog co-authored by Kjellen Belcher, Manager, U.S. Climate

Today’s results from Washington’s second cap-and-invest auction – most notably selling 100% of allowances – continue to signal strong demand for allowances and confidence in the program, bringing significant revenue for the state to reinvest in Washington communities. This is only the second auction held for the cap-and-invest program, following on a strong debut auction which also sold-out and raised almost $300 million in revenue which will be put towards efforts to further decrease Washington’s climate pollution and increase resilience to climate change.

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Also posted in California, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Policy / Read 3 Responses

The lowdown on linkage: Why Washington and California should link their carbon markets

It’s been two months since the debut auction of Washington’s cap-and-invest program — the nation’s most ambitious climate program to date — which puts a firm, declining limit on climate pollution across the state’s economy. Since then, state leaders have turned their attention to the next major decision facing the program: whether to link up Washington state’s carbon market with California-Quebec’s market, a.k.a. “Linkage.” Put simply, linkage refers to joining carbon pricing systems — like cap-and-invest or cap-and-trade systems — across borders, whether those borders are state or national. In a linked market, all participating jurisdictions pool their supply of allowances, and conduct shared auctions.

Washington’s Department of Ecology recently concluded their public comment period on the issue of linkage, the first step required for pursuing linkage as laid out by the state’s Climate Commitment Act, with a goal of linking Washington’s carbon market with the joint California-Quebec carbon market by 2025. After Washington decides whether or not to pursue linkage — likely later this summer — California and Quebec will need to undertake their own processes to decide whether to link.

Washington, California and Quebec have a lot to gain from linkage. It can drive deeper cuts in climate pollution, lower prices and increase the stability of the carbon market. The programs in these jurisdictions are already aligned in the central ways needed to function as a linked market — but to unlock the greatest benefits of linkage, leaders need to align key aspects of these carbon markets in their respective processes.

Here’s what you should know about linkage and four key opportunities Washington and California-Quebec have to align their programs.

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

Bonn climate talks: The Global Stocktake, oceans, food and nature are issues to watch

EDF’s delegation to the climate talks taking place in Bonn, Germany from June 5 to June 15 give us some insights into the issues they’re following. 

Flags on clear sky. Getty.

Next week, climate negotiators will convene in Bonn, Germany for a two-week negotiation session that will serve as an important marker on the road to the COP28 climate talks in Dubai this November. The outcome of the talks, known as SB58, will set the stage for the negotiations at COP28, giving us an indication of what needs to happen in the months leading up to those pivotal talks.

Every year the climate negotiations become more urgent as we draw closer to the timelines for meeting the Paris Agreement goals. The task is even more challenging when considering the other crises the world faces, like economic disruption, energy insecurity and food scarcity. We need effective solutions that can solve for these multiple challenges simultaneously. The talks in Bonn are an important opportunity to gauge progress and push forward key action points that address these various challenges, in the lead up to COP28, and beyond.

EDF’s delegation to the Bonn climate talks are closely monitoring various important issues inside and around the negotiations. These include the Global Stocktake process, food, fisheries and ocean issues, and efforts to expand high-integrity carbon market cooperation.

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Also posted in Agriculture, Forest protection, International, News, Oceans, Paris Agreement, United Nations / Comments are closed

Forest climate finance must be more equitable to support Indigenous Peoples and local communities

This post was co-authored by Julia Paltseva, Senior Analyst at EDF, and Tuntiak Katan from the Coordinator of Indigenous Organizations of the Amazon River Basin (COICA). For more resources on high forest, low deforestation (HFLD) crediting, visit edf.org/hfld. This post has also been translated into Spanish and French (leer en español, lire en français).

Tuntiak Katan of the Coordinator of Indigenous Organizations of the Amazon Basin (COICA). Photo by Leslie Von Pless, EDF

Forests are an essential part of the climate change solution, and their effective conservation requires the empowerment of Indigenous Peoples and local communities, or IPLCs. Around the world, IPLCs have stewarded forests for generations. However, in the face of growing economic pressures to cut forests down, current incentives designed to keep forests standing are largely inaccessible to communities living in areas of historically low forest loss, known as high forest, low deforestation regions, or HFLD.

An effective and equitable global REDD+ incentive-system for reducing deforestation should reward all relevant jurisdictions and actors, including both historical emitters and historical protectors of carbon stock, like IPLCs. We must eliminate forest loss in areas where it is already occurring. At the same time, we must also avoid future increases in deforestation in areas of historically low forest loss – HFLD regions.

Guardians of the forest
Indigenous Peoples and local communities are some of the best forest protectors, especially when equipped with strong tenure and land rights. In Mesoamerica, IPLCs steward half of forested areas. In the Amazon, Indigenous Peoples manage more than 30% of the rainforest, and satellite imagery shows deforestation rates in Indigenous territories are roughly half of what they are in similar surrounding lands. IPLCs typically practice sustainable forest management, through agroforestry and low-impact agriculture, allowing them to both provide for their needs and effectively conserve the forests.

Despite a successful track record of maintaining intact forests, forest communities have directly received less than one percent of international government aid for climate change mitigation and adaptation over the last decade.

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Also posted in Forest protection, Indigenous People, International, REDD+ / Comments are closed

The auction results are in: Washington state’s cap-and-invest program is off to a strong start

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

Today, the Washington State Department of Ecology (ECY) released the results from Washington’s first cap-and-invest auction held last Tuesday, February 28. The results of this auction indicate long-term confidence in the program from covered entities and are an encouraging sign of what’s to come from the Evergreen State. Additionally, the ECY summary report shows that the auction operated smoothly, with oversight and regulatory mechanisms in place to ensure the integrity of the auction and ease of interface for bidders.

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