Regional Emissions Trading Programs On The Move, Part Two
Yesterday we discussed the upcoming auction of carbon dioxide emissions allowances at RGGI. Today we focus on developments at RGGI's western cousin, the Western Climate Initiative (WCI). The WCI is a consortium of seven western states and three Canadian provinces that just added its fourth Canadian member, the province of Ontario, on July 18.
On July 23, the WCI unveiled new recommendations for the scope of a carbon cap-and-trade program that each member state or province can use to develop its own program. By following the WCI recommendations, the individual programs can be linked to form a regional program. Under the recommendations, facilities emitting 25,000 or more metric tons of carbon dioxide and five other greenhouse gases would be required to participate in the cap-and-trade programs.
California will likely be the first state to use the WCI recommendations to form a cap-and-trade program, which is required under Assembly Bill 32 passed by the state legislature in 2006. Other initiative members will likely follow suit after observing the initial performance of California's program.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
