Emission Reductions Post Cap-and-Trade Implementation
Allowance allocation
CA
• Free allocation early in the
program, transitions to more
auction later in program
Allocation of allowances for most
industrial sectors is set at about
90 percent of average emissions,
based on benchmarks that
reward efficient facilities
• For most industrial sectors,
distribution of allowances is
updated annually according to
the production at each facility
Offset credits: Allowed for up to
8 percent of a facility's
compliance obligation
.
GD
A combination of benchmarking
(primary), grandfathering, and
auctioning
• Auction: 5% in power sector, 3%
in other sectors; the share of
auctioning should increase
overtime.
.
Allowances are updated annually.
• Offset credits: Allowed for up to
10 percent of a facility's
compliance obligationView entire presentation