regional greenhouse gas initiative: lessons learned from the design of the nation’s first carbon...
TRANSCRIPT
Regional Greenhouse Gas Initiative:Lessons Learned from the
Design of the Nation’s First Carbon Cap-and-Trade Program
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• Brief Background on RGGI
• Some RGGI Innovations
• Lessons Learned
Overview
The Nation’s First Mandatory
Cap-and-Trade Program for Carbon Dioxide
Launch Date: Jan. 1, 2009
Regional Greenhouse Gas Initiative
• April 2003 Invitation • 3 Year Design
Process• December 2005
Memorandum of Understanding (7 States)
• Model Rule Completed• MA & RI Joined• MD to Sign
Process
• 48.8 million people—(16% of US Population)
• 10% of U.S. Emissions
• 8th largest emitter in the world
• $2.4 trillion economy (19% of U.S.)
The Region at a Glance(CT, DE, ME, MD, ME, NH, NJ, NY, RI & VT)
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• Stabilize emissions at current levels through 2014;
• then reduce by 10% by 2019
• ~13% below 1990 levels
• ~35% below business as usual
Reduction Requirements
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• Firing Biomass/Biofuel a “control” method• Offsets “Valve”• Offsets—5 Initial Types:
– Natural Gas, Propane, Heating Oil Efficiency;– Land to Forest;– Landfill Gas Capture & Combustion;– Methane Capture from Animal Operations; &– SF6 Leak Prevention.
• Recognition of International Currencies
RGGI Innovations
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• Allocations– States agreed to propose minimum 25%
public benefit allocation in MOU– A number of states have proposed 100%
auction: • New York • Massachusetts• Maine• Vermont • New Jersey (“up to 100%”)
RGGI Innovations
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• Clear, Simple Rules
• Allowance Allocations Provide Opportunity to Lessen Impacts of the Program
• Integrity of Offsets Requires Careful Approach to Design & Implementation
Lessons Learned
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• Complete RGGI Implementation– Get rules on the books– Auction Platform and Tracking System– First auction early 2008?
• Bring Maryland On• Add Additional States—PA?• Link to California? Others in West Coast AZ,
NM, OR, WA?• Address Imports of Electricity
RGGI Next Steps
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• MOU among RGGI States Welcomes Participation by Additional States
• RGGI + California =– 28.5% of U.S. Population– 32% of U.S. Economy– 3rd Largest World Economy– 17% of U.S. GHG Emissions– 6th Largest Emitter Worldwide
RGGI + California
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Franz LitzClimate Change Policy CoordinatorNY Dept. of Environmental [email protected]