Limit Lower Global Warming Pollution

							Limit & Lower Global Warming Pollution

global warming pollution. In 2007, the Legislature and the Governor agreed that now
The Clean Energy Minnesota initiative will start reversing the trend of ever-growing

is the time to begin deep reductions in global warming pollution. Interim and long-term
goals for reducing greenhouse gas emissions 15 percent by 2015, 30 percent by 2025,
and 80 percent by 2050 were established. An economy-wide climate change action plan
designed to meet these goals will be before the Legislature when it convenes in February,
2008.
                                                                               Governor Pawlenty, five other Midwestern
                                                                               governors and the premier of Manitoba signed an
The Policy: Limit & Lower Global Warming

                                                                               accord to develop a carbon cap and trade system
Clean Energy Minnesota supports legislation that
Pollution

                                                                               to limit and lower global warming pollution in
guides the development of a regional cap and                                   the Midwest region. This legislation establishes
trade system as an essential, cost effective tool                              features essential to a strong cap and trade policy.
to reduce global warming pollution in the Upper
Midwest. Cap and trade is a market-based form                                  Setting the framework for a carbon cap and trade
of regulation that has been successfully used to                               system will enable Minnesota to achieve its global
reduce other forms of environmental pollution at                               warming reduction goals, reflective of the economic
lower cost.                                                                    conditions in our state and the Midwest region.
                                                                               Any future federal system will build upon these
                                                                               emerging regional frameworks. By acting now,
                                                                               Minnesota will ensure that these guiding principles
                                                                               for a carbon cap and trade system maximize the
                                                                               state’s energy advantages and produces economic
                                                                               benefits for consumers.




                                                                               Cap: In controlling pollution through a cap and
                                                                               What is cap and trade?

                                                                               trade program, the first step is to set a limit, or
                                                                               a “cap” on the total amount of global warming
                                                                               emissions, across multiple sectors of the economy.




                        Audubon Minnesota • Clean Water Action Alliance of Minnesota • Clean Up the River Environment • Fresh Energy •
         Institute for Agriculture and Trade Policy • Izaak Walton League of America–Midwest Office • Land Stewardship Project • Minnesota Center for
   Environmental Advocacy • Minnesota Project • Minnesota Public Interest Research Group • Sierra Club North Star Chapter • Union of Concerned Scientists
New Commodity: A new kind of commodity -
tradable allowances – is created. The number of
pollution allowances created equals the level of
the pollution “cap.” Each source covered by the
cap must obtain allowances equal to the source’s
emissions.

Auction: Emission sources covered by the cap,
such as power plants, industries, and refineries
would pay for their global warming emissions
by purchasing allowances from regulators in an
auction.

Trade: Those emission sources that can reduce
their pollution at a cost less than the allowance
price will do so and those that cannot will
buy allowances. By participating in a regional
market, Minnesota sources can engage in trading
allowances on a Midwest basis and possibly trade
with other regions.


Designing a Cap and Trade System that’s right

Broad participation in the cap: By requiring most
for Minnesota

sectors in Minnesota’s economy to be covered by       the clean energy economy and minimizing cost
the emissions cap, it allows us to maximize our       to the public. Options to be considered include
ability to meet our goals and to use the most cost-   investments in energy efficiency, renewable energy
effective options available.                          and other emission reduction technologies and
                                                      practices, investments in public transit and other
No loopholes: To achieve Minnesota’s emission
                                                      emission-reducing infrastructure, investments in
reduction goals and set course toward the clean
                                                      worker training or retraining, assistance to low-
energy economy, cap and trade must be designed
                                                      income energy consumers and direct rebates to
without “offsets” that will weaken the policy’s
                                                      state residents. These options can greatly reduce
effectiveness. Offsets are often questionable
                                                      the costs of, or increase the savings from, cutting
reductions from sources outside the cap that some
                                                      pollution and ease the transition toward a cleaner
propose we rely on to allow sources under the cap
                                                      economy.
to pollute more.


benefit and minimize public cost: Allowances
Implement the program to build economic

needed to comply with the emissions cap will be       For more information on Clean Energy Minnesota:
auctioned. Proceeds of the auction will flow to a     Nancy Lange, nlange@iwla.org, 651-649-1446
state carbon reduction transition fund that will      For more information on Limit & Lower Global Warming
be used for building economic benefit through         Pollution legislation: Bill Grant, billgrant@iwla.org,



                                www.cleanenergyminnesota.org