; The US Federal Emissions System to Drive the Global Carbon Market
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

The US Federal Emissions System to Drive the Global Carbon Market

VIEWS: 37 PAGES: 8

The US Federal Emissions System to Drive the Global Carbon Market Summary The US carbon market is still evolving as the strongest and the most persistent market in the world. The country has taken certain initiatives at the regional level to control greenhouse gas emissions. However, last year, various policies were introduced at the federal level to set up an economical and legally binding emission reduction plan in the country. Two major laws namely, Waxman-Markey Law and Cantwell-Collins Law, introduced in 2009, focus on two different mechanisms for emission reductions. Waxman-Markey Law aims at establishing “cap and trade” system whereas the later focuses on “cap and refund” system. Scope - Overview of the US carbon Market - Carbon laws prevailing in the US - Features of American Clean Energy and Security Act (ACES): Waxman-Markey Law - Impact of Waxman-Markey Law on the US Carbon Market - Features of Cantwell-Collins CLEAR (Carbon Limits and Energy for America’s Renewal) Act - Impact of Cantwell-Collins Law on the US Carbon Market - Comparison of Laws: Waxman-Markey Law vs. Cantwell-Collins Law Reasons to buy The viewpoint studies the impact of the Waxman-Markey Law and the Cantwell-Collins Law on the US carbon market. It will allow the reader to – - Identify key growth and investment opportunities in the US carbon market on the implementation of either of the two laws - Position yourself to gain the maximum advantage of the industry’s growth potential in the two different scenarios, namely, “cap and trade: system and “cap and refund” system - Facilitate decision-making based on upcoming market developments in carbon emissions market

More Info
  • pg 1
									                            The US Federal Emissions System to Drive the
                                       Global Carbon Market
       Reference Code: GDAE0082VPT                                                                                                     Publication Date: April 2010

       1         Table of Contents                                                           2        Summary
       1  Table of Contents ..........................................................1      The US carbon market is still evolving as the strongest and the
        1.1   List of Tables ..........................................................1     most persistent market in the world. The country has taken certain
        1.2   List of Figures.........................................................1      initiatives at the regional level to control greenhouse gas
       2 Summary .......................................................................1
                                                                                             emissions. However, last year, various policies were introduced at
       3 The US Federal Emissions System to Drive the Global
          Carbon Market...............................................................1      the federal level to set up an economical and legally binding
        3.1   Overview of the US Carbon Market........................1                      emission reduction plan in the country. Two major laws namely,
        3.2   Carbon Laws prevailing in the US ..........................2                   Waxman-Markey Law and Cantwell-Collins Law, introduced in
        3.3   American Clean Energy and Security Act (ACES):                                 2009, focus on two different mechanisms for emission reductions.
              Waxman-Markey Law.............................................3                Waxman-Markey Law aims at establishing “cap and trade” system
        3.4   Cantwell-Collins CLEAR (Carbon Limits and                                      whereas the later focuses on “cap and refund” system.
              Energy for America’s Renewal) Act........................4
        3.5   Comparison of Laws: Waxman-Markey Law vs.                                      3        The US Federal Emissions System to
              Cantwell-Collins Law ..............................................6
       4 Appendix .......................................................................7            Drive the Global Carbon Market
        4.1   Methodology...........................................................7
        4.2   Contact Us .............................................................8      3.1      Overview of the US Carbon Market
        4.3   Disclaimer ..............................................................8
                                                                                             In 2009, the global carbon market was approximately $136 billion.
                                                                                             It is estimated that a global carbon market of $2 trillion can be
                                                                                             established by 2020 if a legal binding global climate treaty is
       1.1      List of Tables                                                               signed as well as a federal emission trading system is established
       Table 1: GHG Programs in the US .......................................2              in the US.
       Table 2: Comparison of Waxman-Markey Law and
                                                                                             In order to establish a strong carbon market in the US, “cap and
                Cantwell-Collins Law, .............................................6
                                                                                             trade” scheme was introduced under which a carbon emission limit
                                                                                             (cap) is set for companies, which when unable to achieve, can buy
                                                                                             allowances from other companies. But, this system is facing
       1.2      List of Figures                                                              opposition from Republicans in the U.S. Senate and doubts persist
       Figure 1: GlobalData Methodology .......................................7             whether the bill related to this system will pass this year. However,
                                                                                             other regulatory measures and “cap and refund” system are seen
                                                                                             as alternatives to minimize greenhouse gas emissions.
                                                                                             The US carbon market was worth $2.7 billion in 2009; less than
                                                                                             3% of the total carbon permits traded under EU’s program, which
                                                                                             equaled $93.9 billion in the same year. Majority of the carbon
                                                                                             market in the US is derived through a 10-state cap and trade
                                                                                             program in the northeast, known as the Regional Greenhouse Gas
                                                                                             Initiative (RGGI) as well as offsets market, which accounted for
                                                                                             $74 million in 2009.
                                                                                             However, future prospects of the US carbon market are
                                                                                             unpredictable as of March 2010, US Senator Lindsey Graham,
                                                                                             working on a compromise climate bill, expects that the cap and
                                                                                             trade bill will not be passed. On the other hand, five US states and
                                                                                             Canadian provinces are planning to start cap and trade system for
                                                                                             carbon emissions in 2012. The US states of California and New
                                                                                             Mexico with Canadian provinces of Ontario, British Columbia and
                                                                                             Quebec are planning climate change initiatives and will contribute
                                                                
								
To top