What is the status of cap-and-trade in California?

The cap declines approximately 3 percent each year through 2020, and approximately 5 percent per year through 2030. Compliance: There are two types of compliance instruments: allowances and offsets. An allowance is a tradable credit to emit up to one MT CO2e.

Which states have a cap-and-trade program?

Launched in 2009, RGGI is the first U.S. cap-and-trade program to reduce carbon dioxide emissions from the power sector. As of January 2021, eleven states are participating in RGGI: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia.

Who is regulated under California cap-and-trade?

California Cap-and-Trade Details The California Air Resources Board (CARB) implements and enforces the program. The cap-and-trade rules first applied to electric power plants and industrial plants that emit 25,000 tons of carbon dioxide equivalent per year or more.

Is California cap-and-trade Mandatory?

California’s Mandatory Reporting of Greenhouse Gas Emissions regulation requires entities that emit over 10,000 metric tons of GHG emissions to report their emissions, and entities that emit over 25,000 metric tons—which are regulated by cap and trade—to verify their emissions with an independent third party.

What is the main criticism of the cap-and-trade program?

Critics of cap-and-trade point to problems that actual cap-and-trade programs like the European Union Emissions Trading Schedule and the Regional Greenhouse Gas Initiative have confronted, such as weak emissions caps, volatility in emissions allowance prices, and overly generous allocations of emissions allowances to …

What is wrong with cap-and-trade?

Although cap and trade systems reduce emissions and can lead to faster cuts in pollution, they also tend to increase the price of oil, coal, and natural gas in an effort to force companies to switch to alternative forms of energy. These initiatives are expensive and impact negatively the economy.