Regional Climate Initiatives Move Forward With Emissions Trading Mechanisms
In the continued absence of meaningful federal involvement in controlling carbon emissions, local and regional governments continue to press forward. Both the Regional Greenhouse Gas Initiative, consisting of ten northeastern states, and the Western Climate Initiative, consisting of six states and two Canadian provinces (with six more states and three more provinces participating as observers), have announced timelines for the design of final greenhouse gas emission credit trading mechanisms. RGGI anticipates awarding a contract to a private auction company by April. The WCI member states and provinces expect to sign a memorandum of understanding for a regional cap-and-trade system by August. In both cases, the initiatives will then rely on the regulatory and legislative authorities of their individual members to implement the programs by legislation and rulemaking. Another regional climate initiative in the upper Midwest remains in its more formative stages.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
