cap and trade
Newsletter
Washington enacts an ambitious carbon emissions strategy
Exploring Washington's new cap-and-trade program reveals complexity and contention.
In short:
- Washington's cap-and-trade policy is designed to decrease greenhouse gas emissions over time, touted as the strongest in the U.S.
- Critiques arise around the efficacy of cap-and-trade and its impact on disadvantaged communities.
- Despite the goal of reducing emissions to 95% below 1990 levels by 2050, concerns linger about the actual environmental and economic outcomes.
Key quote:
"We still haven’t seen a good answer for how linkage would actually lead to reduced levels of greenhouse gas emissions."
— Nico Wedekind, public interest environmental attorney at Front and Centered
Why this matters:
The potential of Washington's cap-and-trade program lies in its dual promise: reducing greenhouse gas emissions to combat climate change while fostering economic growth through green innovation and jobs. Critics, however, raise concerns about the program's effectiveness and fairness.
How joining a climate program could save Western Pennsylvania kids’ lives and lungs.
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Credit: Rachael Annabelle/Unsplash
International court rules against Koch Industries in carbon pricing case
An international tribunal ruled that Canada is not obligated to compensate Koch Industries for the losses it claimed after the cap-and-trade program was canceled in Ontario.
In short:
- Koch Industries sought compensation for over US$30 million in losses following the termination of Ontario’s cap-and-trade program by the Doug Ford government in 2018.
- The case, which hinged on whether emissions credits qualify as investments, was dismissed by the International Centre for Settlement of Investment Disputes.
- This ruling comes after a four-year legal battle, highlighting Koch Industries' history of opposing environmental policies through legal means.
Key quote:
“We don’t know for sure but if the case was tossed out on jurisdiction then it’s likely that the tribunal agreed with Canada that Koch’s purchase of emissions credits in Ontario does not qualify as an investment.”
— Stuart Trew, director of the Canadian Centre for Policy Alternatives’ trade and investment research project
Why this matters:
Critics argue that the Ford government's decision to cancel the cap-and-trade program was ill-considered and pushed the financial burden onto all Canadians, with federal government resources now being used to defend against the Koch family claim. This has sparked discussions on the implications for future environmental policy adjustments, as lawsuits such as this one could deter governments from implementing new or modified environmental policies due to fear of litigation.
Peter Dykstra: Clearing up some myths about the seven—yes, seven—Koch brothers.
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Credit: Documerica/Unsplash
Washington's climate law faces repeal challenge despite oil industry's support
Washington state's cap-and-trade program, backed by major oil companies, is now threatened by a repeal initiative led by a hedge-fund manager.
In short:
- Washington's Climate Commitment Act, a cap-and-trade program, is under threat of repeal despite previous support from oil companies like BP.
- The program, which generated more than $2 billion for climate projects, faces opposition from Brian Heywood, who argues it contributes to high gas prices.
- Oil companies, while critical of certain aspects of the program, prefer to work with legislators for improvements rather than support its repeal.
Key quote:
"We have never been against the Climate Commitment Act."
— Kevin Slagle, vice president of communications, Western States Petroleum Association
Why this matters:
The potential repeal of Washington's climate law highlights the complex relationship between environmental legislation, the oil industry, and public perception. While oil companies show unexpected support for the cap-and-trade system, public opposition fueled by concerns over gas prices poses a significant challenge. This situation underscores the delicate balance needed in crafting effective climate policies that align industry interests with environmental goals.
Related: As Pennsylvania moves to join a regional greenhouse gas initiative, experts say it will also reduce toxics, foster healthier kids, and save the state billions. But GOP policymakers and industry groups remain opposed.
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Photo by Heidi Kaden on Unsplash
Meet the 'conservative influencer' trying to upend Washington's cap-and-trade system
Hedge fund executive Brian Heywood has bankrolled six ballot initiatives, including one to repeal the state's signature climate policy.
Millions more in revenue expected as Washington state conducts third pollution allowance sale
Washington held its third quarterly cap-and-trade auction Wednesday, with 8,585,000 pollution allowances available for purchase.
Top Story
N.Y. adopts cap and trade as a pillar of climate action
Sales of gasoline powered cars would be banned in 2035, natural gas hookups in new homes would be prohibited starting in 2025 and a statewide cap and trade program would be implemented by the end of the decade under the recommendations approved by a New York climate committee Monday.
Top Story
Why the Inflation Reduction Act passed the Senate but cap-and-trade didn't
Many factors converged to spell the cap-and-trade bill's demise, including the Great Recession and opposition from industry interests.
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