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.

China Announces It Will Launch Cap-and-Trade System

While visiting the U.S. last week and meeting with President Obama, China’s President Xi Jinping announced the country’s new cap-and-trade system. The system…

Pope Francis Is Right on Climate Dangers, Wrong on Policy Options

The pope was right to call for a more ethical sustainable development that can meet our economic needs while also protecting the environment.…

Regional Cap-and-Trade Shown to Save Money While Boosting Economy and Cutting Emissions

When the multi-state Regional Greenhouse Gas Initiative was established, organizations like the Institute for Energy Research and the Heritage Foundation argued against any…

The Good News About Higher California Carbon Prices

California carbon prices keep rising, but for once higher prices are a good thing.

Oregon’s Climate Control Legacy

Oregon was on the leading edge of domestic climate policy in the late '90s with the nation's first carbon dioxide regulation, but it…

First ‘Avoided Forest Conversion’ Offsets Purchased in the California Market

California's carbon offset program just saw another first: The Climate Trust has received the first California carbon offsets from an 'Avoided Forest Conversion'…

Cutting California Emissions by 40 Percent: A Blueprint for Climate Leadership

California is America’s climate policy leader, home to both the country’s biggest clean energy industry and an internationally-linked carbon market being modeled across…

Introducing the Healthy Climate and Family Security Act

The bill is, in essence, a cap and dividend plan that would collect gradually increasing fees on the “first sellers” of fossil fuels,…

BP: Put A Price on Carbon, Let The Market Cut Emissions

One of the world’s six major oil and gas companies supports a global price on carbon – and no, this is not an…

Boulder County Proposes Cannabis Carbon “Tax”

Cannabis carbon emissions? That's what one county in Colorado says is the new carbon epidemic. Growing pot has become popular enough that experts…

California Readies for Cap-and-Trade Next Steps

California will expand its cap-and-trade program in early 2015 by mandating refineries participate in the program. Is this a step forward for the…

Carbon Offsets 101: A Simple Guide to Buying Quality

TriplePundit is launching its new series this week – a business buyer’s guide to carbon offsets – and we thought we’d start with…

Health Care Savings Will More Than Cover the Cost of Reducing Emissions

A cost-benefit study conducted by a team of MIT researchers and published in the journal Nature Climate Change looked at three different climate…

Former Treasury Secretary Henry Paulson Weighs In on the Need for a Climate Tax

Speaking specifically about climate change, Henry Paulson, who served as Treasury Secretary during the George W. Bush administration, says: “This is a crisis…

Healthy Forests Promoted Under California Cap-and-Trade

April marked a milestone for forest carbon projects when the California Air Resources Board issued the first forest carbon offsets to a project…