IETA, EDF and CDC Climat Research release detailed case studies on North American carbon markets

LOS ANGELES, 29 April – North American carbon markets are starting to gather steam, according to a series of case studies released by IETA, Environmental Defense Fund (EDF) and CDC Climat Research today, as sub-national efforts to price carbon enter the next phase.

The case studies – released at Navigating the American Carbon World in Los Angeles – find that carbon pricing systems in Alberta, California, Québec and the north-east’s Regional Greenhouse Gas Initiative have all overcome significant challenges, both technical and legal, and are now entering a more mature period.

The progress of these pioneering efforts is now spurring other jurisdictions to action, such as Ontario. Meanwhile regulations in the US to curb emissions from power plants are driving other states, such as Washington, to look to these leaders for models of how to use market-based approaches to achieve environmental goals.

However, the programs are not without their obstacles, including ongoing policy uncertainty in Alberta and the interaction with national climate policies in both the US and Canada.

“Alberta, California, Québec and RGGI should be commended for their leadership on climate change and carbon pricing,” says IETA President and CEO Dirk Forrister. “These four unique systems have all demonstrated the effectiveness of carbon markets in reducing emissions and driving low-carbon innovations without hurting economic growth. As other jurisdictions in North America consider how best to tackle climate change, we encourage them to look at these case studies for examples of what can be – and has been – done.”

“It’s encouraging to see the amazing advances of carbon pricing on the state and provincial level in the US and Canada,” says Gernot Wagner, Lead Senior Economist at EDF. “It’s particularly encouraging to see first linkages emerging across national borders, with California and Québec formally linking their markets. These case studies demonstrate important progress and lessons learned as the world looks toward strong climate policy to turn our economies toward climate safety.”

“In the past few weeks, announcements from within the US and Canada have confirmed growing interest in the development of carbon pricing mechanisms across the region,” says Benoît Leguet, Managing Director of CDC Climat Research. “The four North American case studies will provide up-to-date information to other jurisdictions on the array of carbon reduction policies available, especially in view of the proposed Clean Power Plan in the US.”

IETA and EDF, in partnership with CDC Climat Research, are updating all of their case studies on the world’s carbon markets. A full release is planned for Carbon Expo at the end of May.