Cap and Trade 101

Cap and Trade is a market based policy tool, which sets a cap on the amount of emissions from a group of sources with the end goal of reducing the overall pollution in a nation, region, or industry.

The intention is to incentivize a reduction in emissions and penalize those who don’t comply. Participants in Cap and Trade receive allowances and can design their own compliance strategy giving them flexibility to sell and purchase emissions, in addition to other methods in order to comply with total allowances limited by the cap.

This system is a popular option used to reduce emission of pollutants, most notably green house gases. It operates similarly to a stock market in which the benefit of the system goes to the nations, regions or industry that are able to reduce their emissions through its use.

Lawmakers Act to Raise European Carbon Price

An approval of the EU Parliament to temporarily reduce supply in the EU carbon market marks a turning point for the scheme. Lawmakers…
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Australian Carbon Tax to Go – What Lessons Can Be Learned?

The disparity in price between Australia and Europe - with Australia paying almost six times as much per tonne of carbon as Europeans…
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Politics of Climate Change: A Well-Oiled Machine

The politics of climate change are a lot like the politics of gun control, at least in the sense that President Obama meant…
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Will Obama’s Climate Action Plan Save the World?

Obama's climate plan is far reaching, given today's political climate, but still not aggressive enough to stop the worst impacts of global warming.
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SBIO 2013 Semi-Finalist Interview: EOS Climate

Joe Madden, a pioneer in the North American Greenhouse Gas Markets, and Jeff Cohen, a 2008 Nobel Peace Prize honoree, created EOS Climate…
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Celebrating Planet and People on Earth Day

Today, social responsibility is considered a fundamental tenet of Earth Day. Even more striking is the role of business in the environmental discussion.…
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Shell Oil : Natural Gas Best Opportunity For Carbon Reduction

A company such as Shell has to operate on the basis of where the technical skills are and drive the objective of CO2…
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The Global Carbon Market is Taking Shape

How the US and Australia are gearing up for carbon trading.
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Almost Official: California’s Cap and Trade Program Finally Linking with Quebec

In this week's Navigating the American Carbon World pre-conference workshop on California’s cap and trade, carbon experts discussed the potential linkage between California…
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European Cap-and-Trade Takes Step Backward After EU Parliament Vote

European cap-and-trade suffered a huge setback after the European Parliament rejected a plan to shore up the ailing carbon emissions trading system.
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Why We Need A Price on Carbon

Last week, ThinkProgress posted a video that talked about how the storms, wildfires, droughts, and “weather on steroids” that are being caused by…
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Californians are Set to Benefit from Cap-and-Trade Proceeds

Since California’s cap-and-trade program for greenhouse gases officially entered into force this year, many have focused on its cost to businesses – particularly…
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Bold New Senate Bill Addresses Climate Change

The Climate Protection Act of 2013 proposes a “fee and dividend” structure. The plan would tax carbon-emitting fossil fuels at the sources, but,…
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Chevron, EDF Chat About Fracking, Cap & Trade

Monday evening, two energy business and environmental policy heavyweights duked it out - sparring over several economic and environmental issues involving the future…
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California Turns Its Carbon Market Dream into Reality

That’s it, it started, for real! Carbon allowances are now available for sale in California. Things are moving fast right now, so here’s…