Existing cap-and-trade programs cut global warming emissions

The briefing examines the European Union's Emission Trading Scheme (EU ETS), the Regional Greenhouse Gas Initiative (RGGI), the Western Climate Initiative (WCI), and the Midwestern Regional Greenhouse Gas Reduction Accord. It argues that for cap-and-trade to be effective, the emissions cap must be sufficiently tight and the distribution of allowances should favor auctioning over free allocation to avoid windfall profits for firms.

• The first phase of the European Union’s Emission Trading Scheme (EU ETS) from 2005 to 2007 was criticized for failing to achieve substantial emissions cuts and for allowing electricity producers to earn billions of dollars in windfall profits because carbon allowances were distributed for free rather than auctioned.
• The EU ETS Phase 3 (2012-2020) targets a 20 percent reduction in emissions from 1990 levels by 2020, a goal the document describes as less ambitious than the 30 percent hoped for by climate experts and further weakened by the allowance of offsets from outside the region.
• The Regional Greenhouse Gas Initiative (RGGI), covering the electricity sector in 10 northeastern and mid-Atlantic states, aims for a 10 percent emissions reduction by 2018 and utilizes auctioning for the vast majority of allowances to fund energy efficiency and renewable technologies.
• The Western Climate Initiative (WCI), comprising seven western states and four Canadian provinces, has a regional target to reduce heat-trapping emissions to 15 percent below 2005 levels by 2020, with a proposed cap-and-trade program covering 85–90 percent of emissions.
• The Midwestern Regional Greenhouse Gas Reduction Accord, signed on November 15, 2007, by governors of six states and the premier of Manitoba, seeks to establish a multisector cap-and-trade system with a long-term target of 60–80 percent reductions below current levels.

APA

Union of Concerned Scientists (2007). Existing cap-and-trade programs cut global warming emissions. https://www.ucs.org/resources/existing-cap-and-trade-programs-cut-global-warming-emissions

Chicago

Union of Concerned Scientists. Existing cap-and-trade programs cut global warming emissions. 2007. https://www.ucs.org/resources/existing-cap-and-trade-programs-cut-global-warming-emissions.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=Existing cap-and-trade programs cut global warming emissions |date=9 November 2007 |url=https://www.ucs.org/resources/existing-cap-and-trade-programs-cut-global-warming-emissions |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2007existing, author = {{Union of Concerned Scientists}}, title = {{Existing cap-and-trade programs cut global warming emissions}}, institution = {Union of Concerned Scientists}, year = {2007}, month = nov, url = {https://www.ucs.org/resources/existing-cap-and-trade-programs-cut-global-warming-emissions}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }