by Jonathan Hiskes
Update below
The Center for American Progress offers
a reminder that we already have a cap-and-trade system for carbon emissions up
and running in the U.S.— it’s called the Regional Greenhouse Gas Initiative, it operates in 10 northeastern states, and it works fairly well, according to CAP’s new
review.
Bradford Plumer rounded
up the details in the CAP post. Now I’m copping from his post—what fun, this internet.
Four useful takeaways
here, via Plumer:
The program started modestly—maybe too modestly: “The price of
carbon is extremely low—a meager $2 per ton of emissions—which isn’t really
high enough to persuade utilities to change their behavior.”
Polluters pay the low price—they don’t get giveaways: “All of those
carbon permits are auctioned off by state governments, which has allowed states
to raise about $88 million* for efficiency and renewable-power programs. So as a
funding stream, it’s not too shabby.”
It’s not creating any Enrons: “It hasn’t been subject to the sorts
of market manipulations or price volatility that people worry about with
cap-and-trade. A recent
audit found that the permit auctions have all gone off smoothly—no
outsiders are leaping in and creating a carbon bubble.”
More will be revealed!: “Pretty soon, the cap will start
tightening, prices will go up, and then we’ll presumably get a better look at
how well the program forces power plants to reduce their emissions.”
Also, the cap-and-trade program is not killing the
economy or freedom or kittens. This needs harping on. As urban designer Steve
Price will tell you, the best way to convince people to embrace something
new is to show them what it’s like. A
theoretical phantom cap-and-trade system, in the hands of the right
fear-mongers, can spook a lot of people. A real-life, moderately successful
program just isn’t very scary. The real life version is less useful for
drumming up Tea Party rallies. It’s more useful for taking modest early steps
toward reigning in carbon pollution.
Related note: According
to today’s New York Times, cap-and-trade is dead. John Broder
writes the latest pre-mortem about why Congress will never pass an economy-wide
cap-and-trade program.
If you’re going to read
it, keep in mind all the “healthcare reform is dead” stories and predictions that surfaced over the past year—Huffington
Post has a
roundup.
Or just skip it and
listen to what Rep. Tom Periello has
to say instead: “I’m sick of starting with what can we get through the
Senate; let’s start with what solves the damn problem. Until the Senate gets
its head out of its rear-end and starts to see the crisis we’re in, our country
is literally at risk. Our economy is at risk, because these jobs are being
created overseas.”
* A reader notes that $88 million was from only the most recent auction. Altogether, RGGI auctions have raised some $582 million for efficiency and renewable programs.
Related Links:
Koch Industries funds climate change deniers, Greenpeace reports
Let’s call setting a price on carbon “puppies”
H&M’s organic line and the Wal-Mart perspective