Cap And Trade
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Cap and trade is an approach that harnesses market forces to reduce emissions cost effectively.
Cap and trade. Cap and trade systems are one of several market based ways to reduce greenhouse gas and other emissions. Cap and trade is environmentally and economically friendly approach to capping and controlling greenhouse gas emissions which is the primary cause of global warming. More about this program 2019 annual compliance deadline. The best climate policy environmentally and economically limits emissions and puts a price on them.
Cap and trade cat programs are a type of flexible environmental regulation that allows organizations and markets to decide how best to meet policy targets. Cap trade refers to a system that requires industries to cap the amount of carbon emissions that are released into the atmosphere over a specific time period. The cap and trade program is a key element of california s strategy to reduce greenhouse gas emissions. We re investing all of our carbon market proceeds into projects to reduce greenhouse gas pollution.
Cap and trade reduces emissions such as those from power plants by setting a limit on pollution and creating a market. Emissions trading sometimes referred to as cap and trade or allowance trading is an approach to reducing pollution that has been used successfully to protect human health and the environment. It is a policy move aimed at controlling large amounts of gas emissions from a cluster of sources. Our cap on the amount of greenhouse gas emissions businesses can emit using a cap and trade program is designed to help fight climate change and reward businesses that reduce their greenhouse gas pollution.
California s program represents the first multi sector cap and trade program in north america. It complements other measures to ensure that california cost effectively meets its goals for greenhouse gas emissions reductions. Like other market based strategies it differs from command and control approaches where the government sets performance standards or dictates technology choices for individual facilities. Cap and trade is one way to do both.
This is in contrast to command and control environmental regulations such as best available technology bat standards and government subsidies. See the latest announced projects.
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