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.

The Global Carbon Market is Taking Shape

How the US and Australia are gearing up for carbon trading.

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…

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.

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…

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…

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,…

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…

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…

Vietnam to Launch National Emissions Trading Scheme in 2020

Best known to Americans as the country where males of the baby boomer generation were sent to war, Vietnam will launch a national…

Going Once, Going Twice…California Auctions First Carbon Permits

California held its first auction for carbon allowances last week - permits sold for $10.09 per tonne, it announced yesterday. So what does…

ALEC Looking to Turn the Clock Back on Renewables

The Electricity Freedom Act is nothing more than a shameless attempt to repeal Renewable Portfolio Standard (RPS) legislation in any and all of…

What Will Obama 2.0 Bring For Climate Policy?

President Obama gave a nod to climate change in his acceptance speech on election night, but reducing the United States' greenhouse gas (GHG)…

The Economic Benefits of Carbon Taxes

Carbon taxes boost the financial bottom line and save the environment. So why doesn't the U.S. institute one?

Global Carbon Trading Takes a Big Step Forward

It has often been pointed out that our modern world could quickly become cleaner, safer, and more sustainable if only externalities, such as…

Texas Climate & Carbon Exchange Opens for Global Trading

I know, this almost sounds like a punch line to a bad joke, or perhaps an oxymoron. Many people tend to think of…