U.S. Renewable Energy Policy and Industry
Carbon Markets
Regional Greenhouse Gas Initiative
Third Compliance Period (2015-17)
California
Cap
Target
Projection
More than 45% reduction in CO₂ emissions
from the power sector by 2020 relative to
2005 emissions
Carbon price
Greenhouse Gases
covered
$4.78 (2014) $5.41 (Q1 2015)
Number of Entities
Covered
Cap
Carbon price
Green House Gasses covered
Number of Entities Covered
Sectors Covered
Threshold
Compliance tools & Flexibility
mechanisms
RGGI 2015 adjusted cap is 66.8 million
short tonnes
(60.63 million tCO2)
CO2
168
Fossil fuel Power Plants
>25,000 Megawatts
Free allowances, auctioning, use of offsets
(up to 3.3%), Banking, floor price ($2.05),
reserve adjustment (10 million short
tonnes, 9.1 million tCO2), three year
compliance period
Sectors Covered
Threshold
% Total emissions
covered
Compliance tools &
Flexibility
Mechanisms
Second Compliance Period (2015-2017)
Reduce GHG emissions to 1990 levels by 2020
80% reduction in GHG emissions below 1990 levels by 2050
394.5 million tCO2e (2015)
$11.65 (2014) $12.21 (Q1 2015)
Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N₂O),
Sulphur Hexafluoride (SF6), Hydrofluorocarbons (HFCs),
Perfluorocarbons (PFCs), Nitrogen Trifluoride and other
fluorinated GHGs
approximately 450 entities
cement production, cogeneration, glass production, hydrogen
production, iron and steel production, lead production, lime
manufacturing, nitric acid production, petroleum and natural gas
systems, petroleum refining, pulp and paper manufacturing, self-
generation of electricity, stationary combustion, CO2 suppliers, first
deliverers of electricity, suppliers of natural gas, suppliers of
reformulated blendstock for oxygenate blending (RBOB) and
distillate fuel oil, refineries that produce liquid petroleum gas in
California, facilities that process natural gas liquids to produce
liquid petroleum gas, and suppliers of liquefied natural gas
>25,000 tCO₂e
85%
Free allowances (for some sectors), auctions, offsets (8%),
allowance price containment reserve, banking, limited borrowing,
three-year compliance period
Source: International Emissions Trading Association, Environmental Defense Fund, CDC Climate Research. (2015). The World's Carbon Markets.
Accessed September 2015, http://www.ieta.org/worldscarbonmarkets.
NATIONAL RENEWABLE ENERGY LABORATORY
13View entire presentation