Tradable Permits Examples: Western Climate Initiative (WGI)

  • strict warning: Non-static method view::load() should not be called statically in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/views.module on line 906.
  • strict warning: Declaration of views_handler_argument::init() should be compatible with views_handler::init(&$view, $options) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/handlers/views_handler_argument.inc on line 744.
  • strict warning: Declaration of views_plugin_style_default::options() should be compatible with views_object::options() in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/plugins/views_plugin_style_default.inc on line 24.
  • strict warning: Declaration of views_plugin_row::options_validate() should be compatible with views_plugin::options_validate(&$form, &$form_state) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/plugins/views_plugin_row.inc on line 134.
  • strict warning: Declaration of views_plugin_row::options_submit() should be compatible with views_plugin::options_submit(&$form, &$form_state) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/plugins/views_plugin_row.inc on line 134.
  • strict warning: Non-static method view::load() should not be called statically in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/views.module on line 906.
  • strict warning: Non-static method view::load() should not be called statically in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/views.module on line 906.
  • strict warning: Non-static method view::load() should not be called statically in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/views.module on line 906.
  • strict warning: Declaration of views_handler_filter::options_validate() should be compatible with views_handler::options_validate($form, &$form_state) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/handlers/views_handler_filter.inc on line 607.
  • strict warning: Declaration of views_handler_filter::options_submit() should be compatible with views_handler::options_submit($form, &$form_state) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/handlers/views_handler_filter.inc on line 607.
  • strict warning: Declaration of views_handler_filter_boolean_operator::value_validate() should be compatible with views_handler_filter::value_validate($form, &$form_state) in /hermes/bosnaweb19a/b696/ipg.chicagoclimateonline/sites/all/modules/views/handlers/views_handler_filter_boolean_operator.inc on line 159.

Overview

The Western Climate Initiative (WCI) is a collaboration of U.S. states and Canadian provinces, with observer jurisdictions in the U.S., Canada, and Mexico, whose goal is to reduce regional greenhouse gas emissions to 15% below 2005 levels by 2020.

In addition to its planned cap-and-trade program, WCI also includes programs to promote renewable energy sources, increase energy efficiency, set vehicle emissions and fuel standards, and other methods to reduce GHG emissions.

The WCI Partner jurisdictions are also committed to efforts to help adapt to the effects of climate change.

Members of WCI

As of July 2010, the WCI “Partner” jurisdictions are seven U.S. states (Arizona, California, Montana, New Mexico, Oregon, Utah, Washington) and four Canadian provinces (British Columbia, Manitoba, Ontario, Quebec). There are also six non-participating “observer” jurisdictions in the U.S. (Alaska, Colorado, Idaho, Kansas, Nevada, Wyoming), three in Canada (Nova Scotia, Saskatchewan, Yukon), and six in Mexico (Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, Tamaulipas). Also, the cap-and-trade program (when it begins) is structured so that it can expand to accommodate additional Partner jurisdictions over time.

However, it is currently unclear how many WCI Partner jurisdictions will join the cap-and-trade component of WCI by the planned start date of January 1, 2012. Political opposition in various states has helped obstruct legislation to implement the cap-and-trade system there.

Design

The WCI cap-and-trade program will be composed of individual jurisdictions’ cap-and-trade programs implemented through state and provincial regulations. Each participating jurisdiction will issue “emission allowances” to meet its jurisdiction-specific emissions goal. At least once each three years, covered entities will be required to turn into the state or province one allowance for each metric ton of carbon dioxide equivalent (CO2e) emissions they emit and report.

The emissions allowances issued by each jurisdiction will be usable throughout the jurisdictions for compliance purposes, which creates a single regional allowance market.

The total number of available allowances serves as the “cap” on emissions, which will be reduced over time. The allowances can be bought and sold (“traded”). There is no restriction on who can own WCI emission allowances — they can be sold between and among covered entities or third parties. There is also no limitation on how long WCI emission allowances can be held for future use.

Emission offsets, representing emissions reductions from sources not covered by the program, can be used for compliance in limited quantity, along with allowances from other trading programs that have been recognized by the WCI Partner jurisdictions.