American initiatives
The United States has not made as much headway as the European Union. For the time being, regional initiatives are filling the federal gap
In October 2007 the House Committee on Energy and Commerce released a study arguing for greenhouse gas (GHG) emission reductions by at least 60% by 2050 through a mandatory cap-and-trade program. Some 6 months later, the first GHG cap-and-trade bill (Lieberman-Warner Climate Security Act) reached the Senate floor but was rejected.
Regional initiatives on the East and West Coasts have filled some of the federal gap. The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory cap-and-trade system in the US designed to reduce greenhouse gas emissions from he power-generation sector. It covers 10 eastern states and became operational at the beginning of 2009. By 2018 CO2 emission levels are to drop by 10%. RGGI allowances are primarily distributed through quarterly auctions; the RGGI’s budget trading program then allows firms to trade allowances.
The Western Climate Initiative, another cap-and-trade system launched in 2007, covers 11 Western states and Canadian provinces. The goal is to reduce greenhouse gas emissions by 15% in 2020 from the 2005 level. Emissions reporting is slated for 2011 with trading to start in 2012.
