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.
Climate 411
Washington state’s cap-and-invest program demonstrates cost containment features with special August auction
To make nature financing more equitable, we must understand how NCS credits are used
This blog was authored by Julia Ilhardt, former High Meadows Fellow, Global Climate Cooperation.
At the end of last year, 196 nations agreed to the historic Global Biodiversity Framework, which includes the goal to protect 30% of land and sea area by 2030. Still, nature is woefully underfinanced, with investments in nature-based solutions needing to double to USD 384 billion per year by 2025, according to UNEP.
4 ways California should strengthen its cap-and-trade program
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:
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New York is poised to elevate its climate leadership with ambitious cap-and-invest program
This blog was co-authored by Alex DeGolia, Director, U.S. Climate.
As Governor Hochul and her administration advance a major cap-and-invest program, a new EDF analysis on state emissions reveals how New York’s progress stacks up against its climate goals.
New York has done more to move from pledges to policy than most states, but our analysis finds that the state is still projected to face an “emissions gap” in 2030 — the gap between where emissions are headed under existing policy and where New York needs to be to reach its targets. While New York is not alone in facing an emissions gap, the state stands out for the concerted actions New York policymakers are taking to close this gap.
After finalizing New York’s climate plan late last year, Governor Hochul, state agency officials — led by the Department of Environmental Conservation (DEC) and NYS Energy Research and Development Authority (NYSERDA) — and New York legislators are diving in and actively working to implement the plan’s recommendations. Notable among these is the development of a cap-and-invest program — a policy that can serve as a critical emissions backstop, offering maximum certainty that New York will reach its climate targets. Just as importantly, the Administration has expressed its commitment to put equity, job creation, and affordability at the center of the program — and it must deliver on this commitment as the program advances.
This is exactly the type of action that other states serious about reaching their climate goals should be taking.
Here’s what to know about the analysis and New York’s climate policy leadership.
Leadership states can drive U.S. climate progress forward, if governors meet their commitments
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:
What Washington state can learn from California’s decade of climate investments
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.