Tag:

cap-and-trade

Carbon Offsets 101

written by

With the recent presidential push for climate change legislation, it is now more important than ever to understand the underlying fundamentals of a key aspect common across all climate bills – the issue of carbon offsets. The most recent bill, the American Power Act (APA), proposed by Senator John Kerry and Senator Joe Lieberman, specifically provides for up to 2 billion offsets/annum spread across international and domestic projects. That’s a significant volume, considering that it translates into almost 40% of the total cap and trade expected until 2020. It will be one of the largest and most intensely scrutinized markets of all time apart from being one of the key mechanisms by which emission reductions are actually achieved. The sheer variety of project types, locations and, standards frequently make carbon trading appear to be as complex as astrophysics for most of us on the ground.

Fortunately though, the last few years of carbon trading and project development in voluntary markets and as part of the Kyoto Protocol have clarified the essential characteristics of good projects. These common principles define good and reliable emission reduction projects from not-so-desirable ones. Faced with a multitude of carbon offset standards (administered by as many independent certification bodies that certify carbon offsets according to a list of predefined criteria), it is important to keep one’s eyes on the prize – real, verifiable emission reductions. In other words, a carbon offset must represent a verified actual ton of CO2 reduced uniquely, without adverse effect on the socio-economic environment, and in addition to any emissions that may have been reduced as a matter of course.

07/12/2010 0 comment

Renewable Energy

Scientists Say Lugar Bill Impractical

written by Paul Schwartz

With the clock ticking down on the legislative calendar, lawmakers on Capitol Hill are jockeying to get an energy bill onto the stage that will find the required votes for passage. The goals couldn’t be more clear: enact policy that will save energy, curb greenhouse gas emissions and encourage the production of green alternatives that will reduce the country’s dependence on foreign oil. In the wake of the national catastrophe in the Gulf of Mexico, one might think that characteristic partisan interests and knee-jerk procedural bickering might be put aside in favor of compelling national unity. Yet the legislative waters on the issue remain, for now, murky as usual.

06/11/2010 0 comment

Renewable Energy

Eyeing the Difficult Path To a Sustainable Future

written by Yale Environment 360

Environmentalist David Orr says the easy part of helping the United States live within its ecological limits may be passing laws, such as one that puts a price on carbon. The hard part, he maintains in an interview with Yale Environment 360, is changing a culture of consumption that causes extensive environmental damage — and unhappiness.

Long before buzzwords like “carbon footprint” entered the general lexicon, David W. Orr was working on ways to help humanity lighten its impact on the natural world. A professor of environmental studies at Oberlin College and the author of six books, including Ecological Literacy, Orr has focused on how to best educate students about using the Earth’s resources prudently. He also has been a leading proponent of sustainable design on the country’s college campuses, and was the driving force behind building Oberlin’s $7 million Environmental Studies Center, considered a model of green architecture in the U.S.

05/26/2010 1 comment

Renewable Energy

Tax Fraud Plagues Carbon Trading Program

written by Walter Wang

According to Bloomberg New Energy Finance, tax fraud is the carbon trading market’s most egregious form of cheating, affecting about seven percent of this $125 billion market in 2009.

In August 2009, seven people were arrested near London for not paying tax on the sale of carbon permits, for a total of £38 million (about U.S. $63 million). The taxes were levied as part of the European Union Greenhouse Gas Emission Trading System, created in January 2005 and based on Directive 2003/87/EC, which was enforced beginning Oct. 25, 2003.

Carbon emissions trading, or cap-and-trade, is a system whereby governments tell industry how much carbon dioxide a particular factory or operation can emit. If the factory or operation manages to emit less than the mandate allows, it can sell its excess on the open market, but either it or its designated seller is required to report the transaction and pay taxes on it, as on any financial gain.

05/17/2010 0 comment

Water & Conservation

The EPA Confirms the Climate Is Changing

written by Environmental News Network

In another display of the sea change that has occurred at the U.S. Environmental Protection Agency under the current, Obama administration, a new report was issued yesterday regarding indicators of climate change. The report, “Climate Change Indicators in the United States,” measures 24 separate indicators showing how climate change affects the health and environment of U.S. citizens.

The report represents another step in a series of actions and statements taken on the climate change by the EPA. This EPA has proved to be more active than during previous administrations on this issue. It has labeled CO2 as a gas that can be regulated under the Clean Air Act as a significant greenhouse gas.

New vehicle emissions standards have been established as well as greenhouse gas standards for such vehicles. On April 15, the EPA published the National U.S. Greenhouse Gas Inventory. The Climate/Energy Bill currently working its way through the Senate has been heavily influenced by EPA actions and consultations. And now a report is issued regarding the indicators of climate change.

04/28/2010 1 comment

Renewable Energy

A New Approach in the Senate To Putting a Price on Carbon

written by Yale Environment 360

As climate and energy legislation continues to founder in Washington, Senator Maria Cantwell says it’s time for a new strategy. In an interview with Yale Environment 360, Cantwell explains why her bill can avoid the pitfalls of cap-and-trade and win the support of the public.

Is carbon cap-and-trade legislation alive or dead in the U.S. Congress? Does the energy bill being proposed by senators John Kerry, Joseph Lieberman, and Lindsey Graham — or for that matter any climate and energy legislation — stand a chance of passing the U.S. Senate before this November’s midterm elections?

No one seems to be able to answer these questions at this point. In the meantime, the Carbon Limits and Energy for America’s Renewal Act, or CLEAR — sponsored by Senator Maria Cantwell, Democrat of Washington, and Susan Collins, Republican of Maine — has been getting a surprising amount of attention. Instead of a cap-and-trade system, the bill would institute what its sponsors call “cap-and-refund.” Under the bill, the president would, beginning in 2012, set an overall cap on fossil-fuel emissions.

04/21/2010 0 comment

Renewable Energy

Carbon Offset, Carbon Credits — How to Buy a Clean Conscience

written by Walter Wang

Jeff pine forest Have we outsourced global warming? Critics of cap and trade systems or carbon offsetting have argued that buying a carbon credit is like a medieval indulgence. Rather than saving the planet, it allows me to buy a clean conscience. I’ll give two examples of how this might be true.

Lets say I want to have no carbon emissions. The average American produces 20 metric tons of carbon dioxide a year. Rather than reduce by 20 tons I just buy 20 credits.

Those 20 credits might represent 20 tons of carbon that have been sucked out of the air by fast growing trees. Or do they? What if those trees would have been planted anyway? Then I’m just spending some money to keep polluting — and the world keeps warming.

04/09/2010 2 comments

Renewable Energy

Deal on Senate Climate Change Bill Close

written by Walter Wang

Smoke rises from chimneys at the Sugar Cane Growers cooperative in Belle Glade, Florida January 6, 2010. REUTERS/Carlos Barria

WASHINGTON (Reuters) – The Senate is close to wrapping up talks ahead of introducing a compromise climate change bill, said a top Democratic lawmaker who discussed ideas with industry groups on Wednesday.

“We’re planning to button up our efforts somewhere I hope next week,” Senator John Kerry told reporters after meeting with a coalition that represents automakers, forestry and paper companies, Big Oil, steel, mining, electricity and others.

Kerry is working with Republican Senator Lindsey Graham and independent Senator Joseph Lieberman on a bill to require U.S. industry to cut emissions of carbon dioxide and other greenhouse gases associated with global warming.

03/18/2010 0 comment

Renewable Energy

Obama Calls for Energy Bill, But No Mention of Cap and Trade

written by Yale Environment 360

President Obama called on Congress to pass climate and energy legislation that would include the construction of a new generation of nuclear power plants, more offshore oil drilling along the U.S. coast, and increased funding for developing renewable energy and improving energy efficiency.

But the president made no mention in his State of the Union speech of controversial legislation to impose a price and a cap on carbon emissions. By backing away from cap-and-trade legislation that already has been passed by the U.S. House of Representatives, Obama signaled his willingness to work with Republicans to pass a scaled-back version of climate and energy legislation this year.

01/28/2010 0 comment

Renewable Energy

Will the U.S. Climate Bill Make it Through the Senate?

written by Yale Environment 360

Faced with a faltering economy, fatigue over the health care fight, and the prospect of congressional elections this November, proponents of a carbon cap-and-trade bill in the U.S. Senate face high hurdles when Congress returns from its winter recess next week.

The Obama administration and Sen. John Kerry of Massachusetts, the lead author on the climate bill, insist that they are proceeding with plans to pass climate and energy legislation this year.

01/13/2010 0 comment

Renewable Energy

Fallout From Copenhagen Felt In Businesses And World Capitals

written by Yale Environment 360

Reverberations from the disappointing Copenhagen climate summit continued to be felt worldwide, with political leaders blaming each other for the meeting’s outcome, U.S. senators saying that the lack of progress will make it harder for Congress to pass a climate bill, European Union carbon prices falling, and some businesses lamenting the continuing lack of uncertainty about future CO2 cuts and carbon prices.

Britain’s Prime Minister, Gordon Brown told an environmental meeting on Monday that a handful of countries blocked a legally binding deal on climate change, adding,

“We will not allow a few countries to hold us back. What happened at Copenhagen was a flawed decision-making process. We’ve just got to find a way of moving this process forward.”

Although Brown did not mention any countries by name, Ed Miliband, Climate Change and Energy Secretary, specifically mentioned China, noting that it had vetoed proposals calling for a 50 percent reduction in greenhouse gas emissions by 2050 and an 80 percent cut in emissions by developed nations by mid-century. Miliband said China exercised its veto despite support for the proposal by a broad coalition of industrialized nations and the vast majority of developing nations.

12/21/2009 1 comment

Renewable Energy

Stepping on the Smart Grid

written by Joe Walsh

So, in case you missed it, there is evidently some kind of climate change conference underway this week. And, its not going well. Still, even if we imagine for a moment that a binding international treaty with hard carbon caps could be salvaged from the wreckage in Copenhagen, there is more news from home in the NYT showing that the US is not up to the climate change challenge at home.

We are developing the technology, but Matthew Wald’s story about a “false start” for smart grids in California and elsewhere provides yet another lens to focus on the policy deficit that is crippling every effort at meaningful energy reform. And, with public will degraded by global recession and climate change skepticism calcifying thanks to Climategate, policymakers cannot afford many more (or, anymore?) false starts.

12/16/2009 1 comment

Renewable Energy

Cap and Trade Working Already

written by Environmental News Network

The US already has years of experience with Cap and Trade. A sulfur dioxide Cap and Trade program has proven an effective control strategy to lower SO2 emissions. It provides elements of market incentives and provides flexibility to facilities that emit large quantities of the pollutant in several ways.

One of the most important ways is that it permits older facilities which may need to operate for a limited number of years to purchase “emissions credits” to continue operating without installing un-economic emissions controls by purchasing credits. The credits are created by other sources which control their emissions MORE than required under regulations. There is also an overall reduction in the program to benefit the environment so we are not just transferring emission from one plant to another.

12/15/2009 0 comment

Renewable Energy

U.S. Comes Under Pressure in Final Session Before Copenhagen Summit

written by Yale Environment 360

With just a month remaining before the Copenhagen climate summit, delegates from 192 countries are meeting this week in Barcelona to attempt to lay the groundwork for a climate treaty, with some influential figures saying the United States must be prepared to make firm greenhouse gas reduction commitments if Copenhagen is to be a success.

Connie Hedegaard, the Danish minister for climate and energy, who is hosting the Copenhagen meeting, expressed the hopes and frustrations of European Union members when she told delegates, “We have gotten used to the fact in World War I, World War II, the Cold War, the fight against terror, that the world could count on the U.S. to deliver on huge challenges,” she said. “I believe they have to deliver on this challenge. And if we don’t reach agreement in Copenhagen, who will lose the most? One of the most defined losers is American business.”

11/04/2009 0 comment

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