United States Carbon Cap and Trade Program
Encyclopedia
The United States Carbon Cap-and-Trade Plan is a policy being proposed by President Barack Obama
that would essentially put a price on carbon dioxide
emissions by auctioning off permits to emit the gas. The “cap” would work by setting a maximum amount of carbon to be emitted in the United States, and the “trade” would allow the carbon emitters to freely trade carbon permits amongst themselves.
The plan would likely be modeled after two other cap and trade programs, the United States Acid Rain Program
, and the European Union’s EU ETS.
The United States currently has three regional carbon cap and trade programs in varying states of development that would likely be merged into the national plan:
The President’s 2009 budget proposal has the United States raising $646 billion from 2012 to 2019 by taxing energy usage via carbon permit auctions.
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
that would essentially put a price on carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
emissions by auctioning off permits to emit the gas. The “cap” would work by setting a maximum amount of carbon to be emitted in the United States, and the “trade” would allow the carbon emitters to freely trade carbon permits amongst themselves.
The plan would likely be modeled after two other cap and trade programs, the United States Acid Rain Program
Acid Rain Program
The Acid Rain Program is a market-based initiative taken by the United States Environmental Protection Agency in an effort to reduce overall atmospheric levels of sulfur dioxide and nitrogen oxides, which cause acid rain...
, and the European Union’s EU ETS.
The United States currently has three regional carbon cap and trade programs in varying states of development that would likely be merged into the national plan:
- Regional Greenhouse Gas InitiativeRegional Greenhouse Gas InitiativeRegional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions...
- Western Climate InitiativeWestern Climate InitiativeThe Western Climate Initiative, or WCI, is an initiative—started by states and provinces along the western rim of North America—to combat climate change caused by global warming, independent of their national governments....
- Midwestern Greenhouse Gas AccordMidwestern Greenhouse Gas AccordThe Midwestern Greenhouse Gas Reduction Accord is a regional agreement by six governors of states in the US Midwest who are members of the Midwestern Governors Association and the Premier of one Canadian province to reduce greenhouse gas emissions to combat climate change...
Goals
President Obama proposes reducing U.S. emissions 14% below 2005 levels by 2020 and 83% below by 2050.The President’s 2009 budget proposal has the United States raising $646 billion from 2012 to 2019 by taxing energy usage via carbon permit auctions.
See also
- Emissions tradingEmissions tradingEmissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....
- Midwestern Greenhouse Gas AccordMidwestern Greenhouse Gas AccordThe Midwestern Greenhouse Gas Reduction Accord is a regional agreement by six governors of states in the US Midwest who are members of the Midwestern Governors Association and the Premier of one Canadian province to reduce greenhouse gas emissions to combat climate change...
- Regional Greenhouse Gas InitiativeRegional Greenhouse Gas InitiativeRegional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions...
- Western Climate InitiativeWestern Climate InitiativeThe Western Climate Initiative, or WCI, is an initiative—started by states and provinces along the western rim of North America—to combat climate change caused by global warming, independent of their national governments....
- EU ETS