Today the European Parliament approved a proposal to delay the issue of 900 million emissions allowances (each representing the right to emit one metric ton of carbon dioxide or greenhouse gas equivalent, or CO2e). The purpose of the measure is to ease supply pressure in the European Union Emissions Trading System (EU-ETS), which has been trading CO2e allowances at a level that is viewed by most policy makers and traders to be too low to have the intended policy effect, which is to encourage investments in CO2e emissions-abating technologies. Final wording of legislation that will implement the proposal is yet to be agreed on. In April, the European Parliament rejected a similar proposal, and that rejection led many to question the long-term viability of EU-ETS. We observed here that a collapse of the EU-ETS would not bode well for California’s emerging carbon emissions trading market.
Continue Reading EU Carbon Trading System Wins Parliament’s Support
Recent Federal and International Developments Good for California Cap and Trade
Plans announced by the White House today (June 25) show a credible pathway to meet targets pledged by the President pursuant to the Copenhagen Accord (reduction of greenhouse gas emissions 17% below 2005 levels by 2020). Relatedly, last month the Obama administration increased the assumed social cost of greenhouse gas emissions used for cost-benefit analysis of proposed regulatory decisions to 35 cents per ton, up from 21 cents per ton. These developments arguably represent the Obama administration’s most comprehensive and meaningful push for federal regulation of greenhouse gasses.
Continue Reading Recent Federal and International Developments Good for California Cap and Trade