Climate 411

California auction results underscore need for ambition and certainty in cap-and-trade market

By Caroline Jones and Katelyn Roedner Sutter / Published: November 27, 2024

Photo: Pexels

Results were released today for California’s fourth cap-and-trade auction of the year, which was administered last week by the California Air Resources Board (CARB). Auction prices in the joint California-Quebec market (known as the Western Climate Initiative, or WCI) have trended downward this year, reflecting growing uncertainty among market participants about how best to plan their compliance strategies in the absence of regulatory or legislative clarity. A clear commitment to ambitious reductions in climate pollution and long-term market stability are urgently needed.

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Also posted in California, Carbon Markets, Economics, Greenhouse Gas Emissions, News, Policy / Authors: , / Comments are closed

North Carolina can still avoid huge amounts of emissions (and stranded carbon emitting assets) under the state’s Carbon Plan Law. Here’s how.

By Will Scott, Southeast Climate and Clean Energy Director / Published: November 4, 2024

On November 1, the North Carolina Utilities Commission issued an order in the Carbon Plan docket, almost two months ahead of schedule. It largely ratifies an agreement reached by Duke Energy and the state’s Public Staff, who are charged with protecting the state’s ratepayers. While the Commission drops the requirement for Duke Energy to model hitting the 70% carbon emission reduction by 2030 in state law, largely due to a boom in electricity demand, the utility is still required to take “all reasonable steps” to hit the target by the “earliest possible date.” Which begs the question, what is the earliest possible date? A new white paper from EDF comes to the conclusion that North Carolina can still hit the target by 2032, even with the new carbon-emitting resources moving forward under this order.

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Also posted in Economics, Energy, Greenhouse Gas Emissions, News / Authors: / Comments are closed

New modeling shows the power and potential of cap-and-invest in Washington state

By Caroline Jones and Alison Wenzel / Published: October 15, 2024

Photo via Vlada Karpovich (Pexels)

Washington state’s cap-and-invest program, created in the 2021 Climate Commitment Act (CCA), is nearing the end of its second year and has already raised over $2 billion for communities by putting a price on pollution.

The program is a win-win for climate action and for communities: It creates a powerful economic incentive for companies across the state to lower their emissions, while generating investments for Washington communities in the process. There are already many projects underway across all 39 counties in the state, putting that auction revenue to use. Some of the benefits that people in Washington are seeing include:

  • More access to cleaner public transit including free ferry, bus, and other transit rides for youth.
  • Cleaner air for children in and around schools with upgrades to zero-emissions school buses and new, efficient HVAC systems.
  • Lower energy bills for low-income households and small businesses who receive support for replacing old gas furnaces with modern and efficient electric alternatives.

But the scale of this program enables it to deliver much more for Washington’s communities and economy in the long run. Just how much more? Thanks to new, in-depth modeling from Greenline Insights, supported by EDF, we now have a clearer picture of the transformative impact this program could have.

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Also posted in Carbon Markets, Greenhouse Gas Emissions, News, Policy / Authors: , / Comments are closed

Washington state’s landmark climate law continues to build a greener future for Washingtonians

By Caroline Jones / Published: September 11, 2024
Photo of Mount Rainer

Photo Credit: Bryan Dickerson via Pexels

Results were released today for Washington’s third quarterly auction of 2024, administered last Wednesday by the Department of Ecology (Ecology). During the auction, participating entities submitted their bids for allowances. Under the Climate Commitment Act — Washington’s landmark climate law which sets a binding, declining limit on pollution — Washington’s major emitters are required to hold one allowance for every ton of greenhouse gas that they emit, with the total number of allowances declining each year. With fewer allowances available each year, this system requires polluters in Washington to reduce their emissions in line with the state’s climate targets. Distributing allowances through quarterly auctions allows Ecology to both regulate harmful emissions and raise critical revenue to invest in frontline communities, ramp up clean job creation, bolster climate resilience, and accelerate further emissions reductions.

Here are the results, released today:

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Also posted in California, Carbon Markets, Economics, Greenhouse Gas Emissions, News, Policy / Authors: / Comments are closed

California’s carbon market continues to fund much-needed climate action with third auction

By Caroline Jones / Published: August 21, 2024
Wind energy in California.

Photo credit: Kendel Media via Pexels

Results of the latest Western Climate Initiative (WCI) auction were released today. While the auction sold out for the 16th consecutive time, a decline in the settlement price indicates potential market uncertainty about the cap-and-trade program’s design in the future.

This auction is expected to generate roughly $950 million for the Greenhouse Gas Reduction Fund (GGRF), which is dedicated to supporting initiatives aimed at strengthening climate resilience and reducing greenhouse gas emissions. The GGRF is critical to California’s climate strategy. In the past 10 years, climate investments like GGRF have cut emissions in California by 109.2 million metric tons — the equivalent of the annual emissions of more than 25 million cars — by investing in projects like building affordable housing near job centers, adding zero-emissions transport options, and more.

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Also posted in Greenhouse Gas Emissions / Authors: / Comments are closed

How Long Beach is Leading the Charge Toward a Clean Energy Future

By Nicholas Glover / Published: August 14, 2024

Written Q&A with Mayor Rex Richardson on Climate and Economic Progress in Long Beach, California

City of Long Beach Landscape

Long Beach, California, is showing communities around the country why embracing the clean energy economy is a winning strategy.

Home to one of the busiest port complexes in North America, with a long reliance on revenue from oil and gas, Long Beach is now charting a new path that marries climate progress and economic progress. Under Mayor Rex Richardson’s leadership, the city is making bold moves to electrify its port and cut harmful pollution, land coveted EV manufacturing jobs, and leverage billions in federal investment from historic climate laws – all while lifting up frontline and disadvantaged communities hit hardest by pollution and climate impacts.

Long Beach Mayor Rex Richardson

Long Beach Mayor Rex Richardson

EDF has worked with Long Beach to host a roundtable of climate stakeholders to support their Climate Action Plan and continues to collaborate with the city through its partnership with the African American Mayor’s Association.  To get deeper insights on the city’s transformation, I asked Mayor Rex Richardson about Long Beach’s climate and economic plans, some of the exciting projects that are underway now and what other mayors can learn from his approach. 

Let’s start with some big recent news: Ford has officially chosen Long Beach as its new home to develop its next generation of small, affordable EVs. What kinds of jobs and business opportunities will this new manufacturing facility bring to Long Beach? What has the response from the community been? 

RR: In the City of Long Beach, we are laying the foundation for the Long Beach of the future — a global, sustainability-centered hub that attracts emerging companies, industries, and technologies in clean and renewable energy. Our recent announcement that Ford Motor Company has chosen Long Beach as the home for its new Advanced Electric Vehicle Development Center is evidence of our unwavering commitment to move full-speed ahead towards a zero-emission future. 

Ford plans to open their research-and-development campus in Douglas Park, adjacent to Long Beach Airport, in early 2025. This campus will include two buildings and will host around 450 employees focused on designing Ford’s next generation of low-cost, electric vehicles.  

Ford at Grow Long Beach - 26 June 2024 (1)

Long Beach Mayor Rex Richardson with Doug Field, Ford’s Chief Officer of EVs and Digital Systems, and Alan Clarke, Ford’s executive director of Advanced EV Development, at the city’s Grow Long Beach 2024 event announcing the automaker’s new EV development center. Photo courtesy of Long Beach, California.

As a part of our Grow Long Beach Initiative, and our city’s ongoing efforts to transition away from oil production revenues as a core funding source for city services, we are placing a focus on growing our economy by drawing thousands of new advanced manufacturing and engineering jobs that will support local Long Beach residents with competitive wages, and will allow graduates from our local schools and universities to buy a home and set roots in our community. 

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