tag:blogger.com,1999:blog-16612221.post1769814409847171834..comments2024-03-19T03:14:04.172-04:00Comments on Rabett Run: Happy California Cap-And-Trade EveEliRabetthttp://www.blogger.com/profile/07957002964638398767noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-16612221.post-17311674368131797142012-11-22T19:14:13.335-05:002012-11-22T19:14:13.335-05:00Robin - California does allow limited use of offse...Robin - California does allow limited use of offsets. IIRC, up to 20% of carbon allowances can be done through offsets certified through a specified registry, which as of last spring had only allowed three types of offsets. There were some other restrictions as well, particularly on international offsets.<br /><br />A Stanford academic, Michael Wara, has a writeup somewhere. I can dig it up if you'd like it.Brianhttps://www.blogger.com/profile/09301230860904555513noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-12172126620064834552012-11-19T02:22:54.546-05:002012-11-19T02:22:54.546-05:00Brian, if you have kept 'offsets' out of t...Brian, if you have kept 'offsets' out of the AB32 ETS, then 9/10 for ETS design in my book. Well done, Califiornia!Robin Johnson's Economics Web Pagehttps://www.blogger.com/profile/12924305800986441792noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-36097284298729317102012-11-19T00:03:42.824-05:002012-11-19T00:03:42.824-05:00Brian --- The entire offset thingy looks dodgy to ...<b>Brian</b> --- The entire offset thingy looks dodgy to me. I wager there are ways to game the system.David B. Bensonhttps://www.blogger.com/profile/02917182411282836875noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-4108195285858140942012-11-18T20:59:27.854-05:002012-11-18T20:59:27.854-05:00Robin - if by international units you mean offsets...Robin - if by international units you mean offsets, then the answer is not very open. California is setting up its own registry for offsets. Cal also limits use of international offsets and (I think) out-of-state offsets. I presume an entity getting CDM credit can cross-register in California. <br /><br />I assume there's some mechanism to prevent double dipping between offset markets in different countries, but I don't know for sure.Brianhttps://www.blogger.com/profile/09301230860904555513noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-27295992818542323882012-11-16T19:19:04.256-05:002012-11-16T19:19:04.256-05:00"One critique deserving a response is whether..."One critique deserving a response is whether including a minimum and maximum price on allocations somehow proves a failure of the cap system."<br /><br />I agree that "It depends". Using the NZ Emissions Trading Scheme as my example I would say that it's good risk management to have a price floor in place at the start of trading. <br /><br />How open to international units is the California cap-and-trade scheme? What's the degree of 'linkage'? The NZETS is highly open. <br /><br />The NZETS accepts virtually all international Kyoto units, except nuclear related units and units from CDM <a href="http://beehive.govt.nz/release/industrial-gas-units-banned-new-zealand%E2%80%99s-ets" rel="nofollow">HFC & N20 destruction projects</a> <br />The NZETS has a <a href="http://www.mfe.govt.nz/publications/climate/emissions-trading-bulletin-11/index.html#summary" rel="nofollow">$NZ25 price cap</a> (to protect emitters) but not a price floor. The NZ price collapsed this year following the CDM CER price drop. <br /><br />In the last quarter, the NZ carbon price per tonne CO2-e was <a href="http://hot-topic.co.nz/brother-can-you-spare-3-10-for-a-tonne-of-carbon-dioxide/" rel="nofollow">less than a coffee</a>. For the latest prices and a trend chart, see <a href="https://www.commtrade.co.nz/" rel="nofollow">Commtrade.co.nz</a>. Consequently the NZETS <a href="http://www.nzherald.co.nz/climate-change/news/article.cfm?c_id=26&objectid=10842615" rel="nofollow">'on a stretcher'</a> and foresters are saying $3 a tonne carbon price is an invitation to deforest, not to afforest. <br /><br />Learning point: the NZETS should have had a price floor. <br /><br />The Government's response is to amend the NZETS so that <a href="http://beehive.govt.nz/release/ets-amendment-bill-passes-third-reading" rel="nofollow">agriculture is permanently excluded</a> and to dick around some more about some of the more obviously <a href="http://beehive.govt.nz/release/restrictions-proposed-ets-units" rel="nofollow">dodgy international units</a>.Robin Johnson's Economics Web Pagehttps://www.blogger.com/profile/12924305800986441792noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-25948683813621151782012-11-15T00:52:46.937-05:002012-11-15T00:52:46.937-05:00I think Eli's question may have been about Cal...I think Eli's question may have been about California. I'm pretty sure the answer is that non-polluters can buy allowances and simply not use them (no point in the state doing this; it should just issue fewer allowances). The allowances are auctioned annually though, so you can't get a permanent reduction in annual emissions this way unless you buy them every year. There are some restrictions to prevent entities from cornering the market.<br /><br />More info:<br /><br />"California covered entities, opt-in covered entities, and voluntarily associated entities <br />are eligible to participate in the November 2012 GHG allowance auction. Approved <br />offset registries, verification bodies, and offset verifiers are not eligible to participate in <br />auctions as they are not allowed to hold compliance instruments under the Cap-andTrade Regulation (Regulation). Prior to participating in an auction, the Primary Account <br />Representative (PAR) and Alternate Account Representative (AAR) that will be <br />authorized to bid on behalf of entities eligible to participate in the auction must be <br />approved users in the Compliance Instrument Tracking System Service (CITSS) and <br />the entity must have an entity account in the CITSS. Voluntary associated entities that <br />are participating in the auction as individuals will be required to submit additional <br />documentation to the Financial Services Administrator as contained in Appendix A of <br />the Regulation."<br /><br />http://www.arb.ca.gov/cc/capandtrade/auction/november_2012/auction_notice_attachment_a_revised.pdfBrianhttps://www.blogger.com/profile/09301230860904555513noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-12973553808501705052012-11-14T23:11:31.587-05:002012-11-14T23:11:31.587-05:00Some details here.
http://www.cleanenergyfuture....Some details here. <br /><br />http://www.cleanenergyfuture.gov.au/clean-energy-future/an-overview-of-the-clean-energy-legislative-package/<br /><br />The site is mostly advertising blurb but there is some actual information if you look hard enough.Gaznoreply@blogger.comtag:blogger.com,1999:blog-16612221.post-33787069900149680092012-11-14T15:09:15.587-05:002012-11-14T15:09:15.587-05:00"Can the state at some point buy up some of t..."Can the state at some point buy up some of the allowances and shrink the supply?"<br /><br />This is best done by biodiesel magnates using the obscene profits pouring from their carrot top stills.THE CLIMATE WARShttps://www.blogger.com/profile/02578106673226403151noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-52413881418711973582012-11-14T12:33:07.776-05:002012-11-14T12:33:07.776-05:00Can the state at some point buy up some of the all...Can the state at some point buy up some of the allowances and shrink the supply?EliRabetthttps://www.blogger.com/profile/07957002964638398767noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-33656317746130113362012-11-13T19:58:42.829-05:002012-11-13T19:58:42.829-05:00I understood that Australia would switch to an ETS...I understood that Australia would switch to an ETS/captrade system in 2015. In what sense is the current system an ETS? Is there a cap on allocations, are the allocations tradeable?<br /><br />I've looked around a bit and didn't find a lot of details.Brianhttps://www.blogger.com/profile/09301230860904555513noreply@blogger.comtag:blogger.com,1999:blog-16612221.post-42240344120407549502012-11-13T18:54:07.381-05:002012-11-13T18:54:07.381-05:00Australia's approach is actually an ETS, not a...Australia's approach is actually an ETS, not a carbon tax, but because the price is fixed until 2015 it operates like a tax.<br /><br />Tim StephensAnonymoushttps://www.blogger.com/profile/00085088608562564186noreply@blogger.com