Regional Climate Initiatives Share Cap and Trade Know-How
The three regional climate initiatives in North America ─ the Northeast and Mid-
Atlantic Regional Greenhouse Gas Initiative (RGGI), the Midwestern GHG Reduction
Accord (the Accord), and the Western Climate Initiative (WCI) ─ have joined in a
cooperative effort to share experiences in the design and implementation of regional
cap-and-trade programs, inform federal decision making on climate change policy, and
explore the potential for further collaboration among the three regional programs in the
future.
Together, these 23 U.S. states and 4 Canadian Provinces account for
approximately one-half of the U.S. population, more than one-third of U.S. greenhouse gas emissions, over three-quarters of the Canadian population and one-half of Canadian
greenhouse gas emissions. These diverse jurisdictions share a commitment to building
a new, green economy and reducing the greenhouse gas emissions that are leading to
global warming.
These regional initiatives released a joint white paper, "Ensuring Offset Quality: Design and Implementation Criteria for a High-Quality Offset Program." This paper outlines the common vision shared by the three regional initiatives regarding the key design and implementation criteria necessary to establish a high-quality offset program. That vision includes recognition of the potential value of offsets and a commitment to ensuring their integrity.
All three regional programs incorporate an offset component to reduce
compliance costs and increase compliance flexibility for sources covered by the
programs. Each regional initiative is committed to preserving the integrity of its program
by requiring that emissions reductions achieved through offset projects are real,
additional, verifiable, permanent, and enforceable. In addition, the regional initiatives
agree that any offset program should be based on uniform standards, not a case-by-case
review of specific projects. Offset programs must also have adequate transparency, credible verification, and administrative flexibility.
The regional initiatives have developed this white paper to promote the
consistency and integrity of offsets throughout North America. The next step will
include applying these quality criteria to specific offset project types. By collaborating
on this paper, the participating jurisdictions are moving closer to uniformity among their
own programs and aim to inform future federal programs in the United States and
Canada. A potential benefit of uniformity is that purchasers of offsets will have greater
confidence in the value of the offset, and suppliers will find it easier to meet a consistent
set of standards. Another potential benefit is that jurisdictions could accept offsets
issued by other jurisdictions, which would enhance the market for offsets.