• 1Sky

    This umbrella group wants science to dictate US climate policy.

  • John McCain

    The climate change hero that wasn't.

  • Barack Obama

    Climate superstar and coal industry chum?

Cap on Emissions

Cap on Emissions

Capping emissions of carbon dioxide is the name of the game in Washington when it comes to global warming legislation. But it's not an easy thing to do. Think for a minute about what it would take to design such a law.

How high do you place the cap - what's the maximum amount of allowable emissions? How fast do you bring that cap steadily downward? How do you divvy up the cap into pieces and hand out the right to pollute? If you use emissions permits, how can they be traded or sold? Do you give them away or do you auction them off? If you auction them off, where does the money go? Who is going to watch over all this? The questions just keep piling up.

A mechanism to put a cap on emissions has become a popular idea for two reasons. First reason: it was how this country tackled the problem of acid rain. The cap mechanism, on a smaller scale, has worked against sulphur dioxide. Stands to reason it could work for carbon dioxide. Second reason: because putting a tax on carbon, even though it would be far easier and more efficient than a cap, is thought to be politically impossible.

America's Fortune at Stake

But there's a third reason now that has really become the kicker: there's a fortune at stake. Here's why.

In order to cap emissions, you have to be able to count them. The way to do that is to issue a set number of permits. One permit for every ton of carbon, until you hit the cap. Then no more are available. No permit, no emissions. And each year, you decrease the number of permits available, and bring the cap down on emissions. (Science recommends a 2% decrease each year for the next 40 years, or 80% by 2050.)

The scarcer permits get, the more valuable they become. So let's say you get a permit you don't need, you can sell it. In other words, permits will be a new form of currency. Some experts estimate that when it matures the market in carbon permits will be worth $500 billion or more every year.

So here's another way to think about the law to cap emissions that will eventually emerge from Congress: the government is going to print $500 billion in new currency and set the rules for who gets to have it.

We best pay attention, and learn about the different options that are in play. The solution we end up with will be America's answer to this simple question: Who owns the sky?

Register or login to subscribe to updates from solve climate

Today's Climate

August 21, 2008

States Granted Control of Emissions (The Washington Times)
A federal appeals court on Tuesday threw out a Bush administration policy that allowed only the Environmental Protection Agency (EPA) to monitor polluting industries, giving states broader authority over emissions control.

Carbon Funds Grow in '08 But Slowed by Uncertainty (Reuters)
The global carbon fund market, which invests in emissions offset credits from clean energy projects in developing countries, has risen by 63 percent to nearly $13 billion so far in 2008, environmental market analysts said on Thursday.

NYC Mayor Calls for Wind Turbines Atop Skyscrapers (Reuters)
Wind turbines would top New York City skyscrapers and bridges and dot the city's shorelines, while the mighty tides that drive the Hudson and East Rivers would also generate power under a new plan Mayor Michael Bloomberg presented on Tuesday.

New Sea Change Forecasts Present a Slimy Picture (Christian Science Monitor)
Earth’s oceans are on the brink of massive change. A new overview warns that such relentless human impacts as overfishing or agricultural pollution – as well as global warming – threaten mass extinctions of marine life.

Containing Climate Change: An Opportunity for U.S. Leadership (Foreign Affairs)
The United States can curb its own emissions and encourage energy effeciency and the development of clean-energy technology worldwide by rethinking carbon regimes. (Subscription Required)

Stock by Stock, Is Solar Coming Back? (Earth2Tech)
Suntech Power’s saw its stock rally more than 12 percent to $41.75 Wednesday after earnings showed revenue in the second quarter were up 51 percent from the same quarter a year earlier to $480 million. Analysts had been expecting $439 million.

Scientists Urge U.S. to Protect Economy from Climate (Reuters)
Eight scientific organizations urged the next U.S. president to help protect the country from climate change by pushing for increased funding for research and forecasting, saying about $2 trillion of U.S. economic output could be hurt by storms, floods and droughts.

Solazyme Targets Algae Fuel in Three Years (CNET)
In the race to make sustainably grown biofuels, algae is the great green hope. Growing algae is not hard. But making enough to be competitive with fossil fuel prices has eluded the many companies and researchers betting on algae as a biofuel feedstock. Solazyme CEO Jonathan Wolfson on Wednesday said that his company will be able to produce millions of gallons of algae-derived biodiesel in three years.

Related Posts