Carbon Markets

Policy Primer: Carbon Pricing July 2021 Update

Emission trading is coming to prominence as a key market-based tool in state efforts to reduce greenhouse gases, including decarbonization of the electricity sector. Among recent actions Washington has enacted legislation to implement an economy-wide cap-and-invest system, becoming the second state to have a comprehensive carbon-pricing program, and Pennsylvania has adopted rulemaking for a carbon trading program covering the power sector.

Policy Primer: Carbon Pricing

As the Biden administration takes action to address climate change through federal policies including rejoining the Paris Agreement and increasing the social cost of carbon, states continue to strengthen existing carbon pricing programs and advance new initiatives. State-level activity on emission-trading programs and carbon pricing is expected to remain on the rise as more jurisdictions embrace policy goals to transition to a lower-carbon power system and economy.

Visual Primer: Northeastern Regional Carbon Market Gets A Boost With New Members

The Regional Greenhouse Gas Initiative (RGGI), which established the nation's first mandatory emissions-trading program, received a further boost as Virginia finalized regulations to become its eleventh member and Pennsylvania, the third largest coal-producing state, adopted draft regulations to join the program, following New Jersey’s re-entry after a decade.

EnerKnol’s Visual Primer – RGGI Carbon Auction Signals Steady Market Defying COVID-19 Impacts

Prices in the 10-state Regional Greenhouse Gas Initiative’s latest carbon auction rose to the highest since 2015, defying impacts from the COVID-19 pandemic as two more states gear up to join the initiative. Meanwhile, revenues from California’s post-pandemic auction tumbled to $25 million, less than 5 percent of the previous auction proceeds, pointing to a need for reforms for predictable outcomes and a long-term strategy to fund climate programs.

EnerKnol’s Visual Primer – New Jersey’s Re-Entry into RGGI Strengthens Case for Regional Cooperation on Emissions

The Regional Greenhouse Gas Initiative (RGGI) expanded from nine to ten member states with New Jersey’s re-entry after almost a decade. Virginia’s Clean Economy Act sets the state to link with the compact in 2021, and Pennsylvania is drafting regulations in accordance with a 2019 executive order that commits the state to join the compact.

EnerKnol’s Visual Primer – Carbon Emission Pricing in the U.S.: State of Play in 2019

As legislatures adjourn, U.S. states take stock of their progress on expanding clean energy and climate policies. Measures to tackle greenhouse gas emissions have long been a political lightning rod, but mechanisms like carbon pricing are coming up more regularly in legislative sessions and evolving to play a key role in the shift to a low-carbon economy.

California-Quebec Carbon Auction Sells Out, Reflects Steady Demand Amid PG&E Uncertainty

The eighteenth quarterly carbon auction held by California and Quebec sold all 80,847,404 carbon permits offered for current emissions at $15.73, above the floor price of $15.62, according to the results released on Feb. 27 by the California Air Resources Board. The auction sold about 66 percent of the permits offered for 2022 emissions at…...

Virginia Legislature Passes Bill Aimed at Blocking Participation in Regional Carbon-Trading Program

The Virginia legislature approved a bill that would prohibit the governor or any state agency from participating in a regional carbon market, without a two-thirds majority vote from both the legislative chambers. The state is considering its own proposed cap-and-trade rule designed to link with the nine-state Regional Greenhouse Gas Initiative, or RGGI, the nation’s…...

EnerKnol’s Visual Primer – States Put Carbon Emissions Pricing Back on the Table in Bid for Harder Push on Climate

Measures for carbon emission pricing and studies have so far this year surfaced in at least nine states, spanning from politically moderate Montana to progressive New York. Hawaii has a proposal to investigate how to implement a carbon tax while limiting its impact on lower income residents. In Oregon, legislation has been introduced for a cap-and-trade system to implement economy-wide carbon pricing. California is considering a bill that seeks a mechanism for assessing a carbon tax on retail products. Connecticut is considering a proposal for a regional collaborative on assessing such a fee.

Oregon Bill Seeks Stronger Emissions Targets, Economy-Wide Carbon Pricing

The Joint Committee on Carbon Reduction unveiled legislation on Feb. 4 that would establish the Oregon Climate Action Program to place a cap on greenhouse gas emissions for entities whose annual emissions exceed 25,000 metric tons of carbon dioxide equivalent. The bill would set an annually declining emissions budget, starting in 2021 to put the…...