Climate 411

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.

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

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

By Caroline Jones / Published: June 7, 2023

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.

Posted in California, Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Policy / Read 3 Responses

3 considerations for climate negotiators as they close out the first Global Stocktake

By Maggie Ferrato / Published: June 5, 2023

This post was co-authored by Julia Ilhardt, High Meadows Fellow for Global Climate Cooperation at Environmental Defense Fund.

Flags of the world. Getty.

The first Global Stocktake – a process designed to assess collective progress toward the Paris Agreement’s goals on climate change mitigation, adaptation, and finance – is rapidly nearing its official conclusion at COP28.

With nearly a full year of discussions completed, the process is shifting from a technical exercise to a political one. The outcome must spur ambition in the upcoming round of national climate plans, or Nationally Determined Contributions (NDCs), due to the UN climate agency in 2025.

A successful outcome of the first Global Stocktake will point countries to opportunities for climate action that will put the world on track to meet the Paris goals.

What has the Global Stocktake told us so far?
The vast amount of technical information and literature submitted for consideration since the start of the Global Stocktake underscores what we already know. Despite progress in recent years, we’re not on track to meeting the goals of the Paris Agreement. On mitigation, for example, countries must step up the ambition of their NDCs and implement the commitments they’ve already made.

The literature also reminds us, however, that we have a wide range of tools available to tackle the climate crisis. In fact, the Intergovernmental Panel on Climate Change (IPCC) found that we could reduce emissions by at least half by 2030 with solutions that cost no more than $100 per ton of CO2e. And half of these solutions actually cost less than $20 per ton of CO2e.

Opportunities for action are available across all sectors and greenhouse gases. As countries begin work on their updated climate plans, they must make use of these tools and learn from each other’s experiences.

The next round of NDCs is due to the UNFCCC in two short years, and we now have fewer than seven years left in this critical decade. The Global Stocktake should provide a springboard for action.

The political phase of the Global Stocktake is about generating outputs that help them do just that. Though negotiators have yet to decide on the final form the outputs will take, the products will summarize opportunities, challenges, lessons learned, and good practices for implementing climate solutions.

To ensure a successful first Global Stocktake, here are three things negotiators should keep in mind as the process enters its final phase:

Posted in Energy, International, Paris Agreement, United Nations / Comments are closed

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

By Caroline Jones / Published: June 1, 2023

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.

Posted in California, Carbon Markets, 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

By Guest Author / Published: June 1, 2023

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.

Posted in Agriculture, Carbon Markets, Forest protection, International, News, Oceans, Paris Agreement, United Nations / Comments are closed

New report aims to help Massachusetts put the “public” back in public utilities

By Jolette Westbrook / Published: May 5, 2023

The Massachusetts Attorney General’s office just released a new report that EDF – and I – are proud to have helped create, titled Overly Impacted & Rarely Heard: Incorporating Community Voices into Massachusetts Energy Regulatory Processes.

The report details specific ways to make sure that energy regulatory decision-making processes in Massachusetts are more inclusive and more equitable, and that they align with recent legislation and policy initiatives.

The report is the result of a Stakeholder Working Group convened by the Office of the Attorney General to identify barriers to participation in proceedings at the Commonwealth’s Department of Public Utilities (DPU) and Energy Facilities Siting Board (EFSB), and to propose solutions. The DPU oversees investor-owned electric power, natural gas, and water companies in Massachusetts. The EFSB is an independent state board that reviews proposed large energy facilities including power plants, electric transmission lines, intra-state natural gas pipelines, and natural gas storage tanks. These agencies are little known to the public, but their decisions have an outsized impact on residents’ everyday lives.

I represented EDF on the Stakeholder Working Group, which also had representatives from community-based organizations and consumer advocacy organizations with expertise in environmental justice, climate, and environmental issues, and people with experience and expertise in proceedings at the DPU and the EFSB.

After a more than 18-month stakeholder process, our report recommends seven areas where improvements are necessary:

Posted in Cities and states, News, Partners for Change, Policy / Comments are closed

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