| November 24, 2009 |  |
California Moves to Finalize Cap-and-Trade Program
Statement by Erin Rogers, Western states manager for the Union of Concerned Scientists’ Climate and Energy Program
BERKELEY (November 24, 2009) — Draft rules for a cap-and-trade system released this week by the California Air Resources Board (CARB) would keep California at the forefront in addressing climate change, but the proposed rules include some troublesome loopholes that the agency should close before finalizing them, according to the Union of Concerned Scientists (UCS).
Below is a statement by Erin Rogers, Western states manager for the Union of Concerned Scientists' Climate and Energy Program:
"As delegates prepare to go to Copenhagen and Congress moves toward passing a climate and energy bill, California is leading the way with this proposal for a cap-and-trade system. Effective climate policies like this one will promote clean energy technology and green job development that are key to our state's economic future.
"This draft rule is the culmination of years of ground-breaking work designing the world's most comprehensive carbon cap, scheduled to go into effect in 2012.
"We're pleased that the draft rule suggests the agency might include transportation fuels under the cap at the start of the program in 2012, instead of waiting until 2015. Including transportation fuels would set California on the right course for achieving its climate goals. Pollution from transportation fuels are the single largest source of global warming pollution in the state.
"CARB has not made a decision on how to distribute allowances, or pollution permits, in a cap and trade program. Auctioning is the most fair and transparent method for distributing allowances. It also rewards businesses that have already taken voluntary steps to reduce their emissions. The revenue from allowance auctions then should be used to finance projects to help the state meet its emission-reductions goals. We think CARB should auction off all the allowances from the start.
"CARB also included a loophole in the draft that would allow the state's largest polluters to avoid cutting their own emissions by purchasing offset credits from out of state and from polluters not covered under the cap. Eliminating this offsets loophole would ensure that polluters make their own emissions reductions and invest in clean energy, which would generate in-state jobs and clean up the air.
"CARB is proposing that nearly half of the required emission reductions could come from offsets. The agency should forbid polluters from using credits from the United Nation's Clean Development Mechanism program, which has been widely discredited for approving credits that do not represent real emission reductions."
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.
