Cap and Trade, definition of

Cap and Trade is a market-based policy tool for protecting human health and the environment.

A cap and trade program first sets an aggressive cap, or maximum limit, on emissions. Sources covered by the program then receive authorizations to emit in the form of emissions allowances, with the total amount of allowances limited by the cap. Each source can design its own compliance strategy to meet the overall reduction requirement, including sale or purchase of allowances, installation of pollution controls, implementation of efficiency measures, among other options. Individual control requirements are not specified under a cap and trade program, but each emissions source must surrender allowances equal to its actual emissions in order to comply. Sources must also completely and accurately measure and report all emissions in a timely manner to guarantee that the overall cap is achieved.

• Is Cap and Trade really the way to care for the planet?
  I reckon Cap and Trade is not the way to go..

• California’s Costly “Cap and Trade” Forest Emission Offsets Program Just Climate Alarmism Incompetence
  This very embarrassing and public dispute came about as a result of a study by a San Francisco nonprofit called CarbonPlan that concluded forest carbon emission credits are actually causing an increase in the state's greenhouse gas emissions.
• Wildfires offsetting California’s expensive cap-and-trade emissions cuts
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• Ontario greenhouses could lose $10M because of new cap-and-trade rules
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• Cutting Coal Pollution by 20% is Just One Way Obama is Making Climate History
  President Barack Obama on Monday will announce the most significant action to combat climate disruption his administration has taken and the boldest move to reduce greenhouse gas emissions in American history...
• South Korea Launches the Word’s Most Aggressive Carbon Market
  Photo via Shutterstock South Korea has made clear their intent to become one of the world's leading warriors against climate change, and they are willing to back up their assertions with cold, hard, cash...
• Why Is Congress Lethargic about Energy?
  This week National Journal’s Energy Experts Blog poses the question: “What’s holding back energy & climate policy.” So far 13 wonks have posted comments including yours truly. What I propose to do here is ‘revise and...
• China Announces Plans to Tax Carbon Emissions and Clean up Air Pollution!
  Image: © John E. Williamson Not long after reports of China’s unearthly pollution dominated headline news, the Ministry of Finance has published plans to tax carbon emissions. The idea of a carbon tax is not new in China, but the secretary of tax...
• China to Tax Carbon Emissions and Clean up the Sky!
  Image: © John E. Williamson Not long after reports of China’s unearthly pollution dominated headline news, the Ministry of Finance has published plans to tax carbon emissions. The idea of a carbon tax is not new in China, but the secretary of tax...
• EU Still Groping for Carbon Price Sweet Spot
  In a post last September, I observed that carbon prices in the EU’s emission trading system (ETS) were so low they failed to incentivize hoped-for technology innovation, yet so high EU governments had to establish a “carbon compensation...
• Why Courts Should Repeal EPA’s ‘Carbon Pollution’ Standard (and why you should care)
  Note: A nearly identical version of this column appeared last week in Forbes Online. I am reposting it here with many additional hyperlinks so that readers may more easily access the evidence supporting my conclusions. The November 2012 elections...

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