Does Todd favor carbon taxes, cap-and-trade, both, or neither?
Carbon cap and trade
Transcript of Carbon cap and trade
![Page 1: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/1.jpg)
Sid A. Imam
Master of Project Management Candidate
Project Management 441 Northwestern UniversityEvanston , IL, USA March 10, 2009Instructors: Lois Vitt SaleHelen J. Kessler
![Page 2: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/2.jpg)
Two Types:
The primary footprint: measure of our direct
emissions of CO2 from the burning of fossil fuels
The secondary footprint: measure of the indirect CO2 emissions from the
whole lifecycle of products
![Page 3: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/3.jpg)
Industrial world standard tool for addressing global warming
Policymakers would set a mandatory cap on emissions
of carbon dioxide and provide companies with economic
incentives to reach that cap at the lowest possible cost
![Page 4: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/4.jpg)
Industrial world standard tool for addressing global
warming
Policymakers set a mandatory cap on
emissions of carbon dioxide and provide companies
with economic incentives
![Page 5: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/5.jpg)
Alcoa, AIG, Boston Scientific, BP America, Caterpillar, ConocoPhillips,
Chrysler, John Deere, Dow, Duke Energy, DuPont, Environmental
Defense Fund, Exelon, Ford, FPL Group, General Electric, General
Motors, Johnson & Johnson, Marsh, National Wildlife Federation,
Natural Resources Defense Council, NRG Energy, The Nature
Conservancy, PepsiCo, Pew Center on Global Climate Change, PG&E,
PNM Resources, Rio Tinto, Shell, Siemens, World Resources Institute,
and Xerox
Target: Reduction of green house gas (GHG) to at least
25 percent below 1990 levels by 2020 and 80 percent
below 1990 levels by 2050
![Page 6: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/6.jpg)
o Negotiation process for a post-2012 climate
change regime
o January 1, 2008 marked the formal start of
the compliance period of the Kyoto Protocol
and of Phase II of the European Union
Emission Trading Scheme (EU ETS).
![Page 7: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/7.jpg)
EU ETS
Allowance Markets
Project-based
Markets
Compliance
Driven Markets
![Page 8: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/8.jpg)
o Program for GHG reduction in developing Countries
o Works with within the framework of the Kyoto Protocol's Clean Development Mechanism(CDM) or Joint Implementation (JI)
![Page 9: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/9.jpg)
Cap & trade Carbon tax
Lengthy regulatory process Not complex
Tradable permits = assets Regulatory mandate
May limit innovation Will foster more innovation
Voluntary market Governed by legislation
Currency/ Price & political risk Less prone to those risk
Many players; complex structure
Less players
After 2012 the path is not clear Regulator can make policy
![Page 10: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/10.jpg)
![Page 11: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/11.jpg)
![Page 12: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/12.jpg)
![Page 13: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/13.jpg)
![Page 14: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/14.jpg)
![Page 15: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/15.jpg)
![Page 16: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/16.jpg)
o Cap-and –trade Proposals in the U.S. Congress:
Boxer-Lieberman-Warner Bingaman-Specter McCain-Lieberman Sanders-Boxer Kerry-Snowe Oliver-Gilchrest
![Page 17: Carbon cap and trade](https://reader034.fdocuments.net/reader034/viewer/2022051617/55a543101a28abb2478b45c5/html5/thumbnails/17.jpg)