U.S. carbon markets demonstrated robust participation in recent auctions including Washington’s two consecutive auctions that sold out of carbon permits and raised over $850 million under the state’s cap-and-invest program launched this year. However, carbon-trading programs continue to face opposition in some jurisdictions over concerns of higher ratepayer bills.
The deployment of carbon capture, utilization and storage (CCUS) technologies is expected to increase in the U.S., driven by federal and state initiatives to meet emissions reduction targets. Supportive policies, including $12 billion in funding from the…Read the full report …...
The deployment of carbon capture, utilization and storage (CCUS) technologies is expected to increase in the U.S., driven by federal and state initiatives to meet emissions reduction targets. Supportive policies, including $12 billion in funding from the Infrastructure Investment and Jobs Act (IIJA) of 2021 and enhanced tax credits under the Inflation Reduction Act (IRA) of 2022, are driving carbon capture projects across the U.S. Initiatives to expand carbon dioxide (CO2) pipelines to connect to sequestration sites have also gained momentum.
The U.S. Environmental Protection Agency (EPA) has proposed new limits on carbon dioxide emissions from coal- and gas-fired power plants, the latest in a string of actions to further the Biden administration’s ambitious climate agenda including proposals to strengthen vehicle emission standards and curb methane leaks from oil and gas wells.
Heightened activity around carbon pricing mechanisms reflects the need for expedited measures to align with ambitious emissions reduction trajectories.
Stringent climate policies have prompted discussions around comprehensive cap-and-invest programs to address emissions across multiple sectors. Several U.S. states have devised bold climate action plans that call for transformations across industry, energy, and transportation sectors.
Discussions about carbon pricing continue to evolve as the strategy is increasingly viewed as a policy tool that can play an expanded role in a broader policy mix to meet ambitious climate goals.
The increasing focus on reducing carbon dioxide (CO2) and other greenhouse gas emissions to achieve climate goals has drawn renewed attention to the deployment of carbon capture, utilization, and storage (CCUS) technologies. Federal investments in carbon management through the 2021 Infrastructure Investment and Jobs Act (IIJA) have provided a near-term opportunity to scale commercial carbon capture projects.
U.S. carbon markets drew strong participation in recent auctions reflecting potentially higher demand for carbon allowances in anticipation of more stringent federal and state climate policies. Washington is advancing a new cap-and-invest program, while Vermont is examining options for a similar initiative to cut transportation sector emissions.
Discussion around the social cost of greenhouse gases has drawn increased interest following the Biden administration’s renewed focus on establishing the climate metric for federal agencies to incorporate in their policy decisions.
Federal and state government agencies across the U.S. are advancing climate measures for effective implementation of emissions-reduction strategies to progress towards ambitious goals. Federal actions include an executive order directing the federal government to use its procurement power to achieve net-zero emissions, stronger auto fuel standards, and a methane reduction proposal. Recent state actions range from New York’s plan to implement its landmark climate law to Colorado’s oil and gas emission standards, and a cap-and-invest program in Oregon.
Interest in carbon pricing mechanisms has deepened as lawmakers and regulators explore policy tools to address emissions reductions in order to reach ambitious clean energy and climate goals. Cap-and-trade is figuring more prominently as an efficient market-based means to achieve significant carbon reductions and create an incentive to invest in non-emitting technologies.
