The Great Debate UK
from The Great Debate:
States see pushback against carbon trading
-- John Kemp is a Reuters market analyst. The views expressed are his own --
Efforts to implement cap-and-trade programs at state level are faltering, just as policymakers in Washington are struggling to generate enough support to put in place a comprehensive national system.
Recent setbacks in California and Arizona point to growing headwinds against the policy. As cap-and-trade loses momentum and becomes embroiled in bigger political disputes about the size and role of government, opponents are becoming emboldened to try to block the policy completely.
Carbon market supporters have repeatedly expressed the hope that state and regional initiatives can provide at least a temporary substitute as hopes for a national program have dimmed in the wake of last year's failed summit in Copenhagen and a string of election defeats that have thrown the progressive wing of the Democratic Party onto the defensive.
But the same factors that undermined support for a nationwide program, especially concern about the near-term costs and adverse impact on employment when the economy is only just starting to recover from deep recession, are dimming enthusiasm at state level as well.
from The Great Debate:
Emissions prices in 2020
-- John Kemp is a Reuters columnist. The views expressed are his own --
Uncertainty about the future cost of emissions allowances for greenhouse gases is one of the biggest obstacles to winning consent for a cap and trade or cap and refund programme in the U.S. Congress. To have any realistic prospect of passing emissions legislation, lawmakers must find a way to reduce it.
Proponents argue a trading programme would ensure emissions reductions are achieved in the most cost-effective manner. They point to the success of the Environmental Protection Agency (EPA)'s Acid Rain Program in cutting sulphur dioxide (SO2) emissions much more quickly and at a fraction of the expected costs during the 1990s.
Title IV of the Clean Air Act Amendments (CAAA) 1990 established a trading programme for SO2 emissions from power plants. Phase I, beginning in 1995, covered the 110 dirtiest coal-fired electricity generating facilities.
from The Great Debate:
U.S. cap-and-trade choice inferior to carbon tax
-- John Kemp is a Reuters columnist. The views expressed are his own --
President Barack Obama's first budget puts climate change at the heart of the administration's long-term economic plan. But despite the clear theoretical advantages of a simple carbon tax, he seems set to follow the EU and California in opting for a cap-and-trade system.
The budget plan commits the administration to work with Congress on an economy-wide emissions reductions program, based around cap-and-trade.
