Designing a Cap-and-Trade Program For the Midwest

This research paper provides a framework for designing a market-based, multi-sector cap-and-trade mechanism for the Midwest, following a 2007 agreement by ten governors to reduce greenhouse gas emissions.

• In November 2007, ten Midwestern governors announced the Greenhouse Gas Accord, a regional agreement aimed at improving energy security and designing a greenhouse gas (GHG) reduction program that covers nearly one fourth of U.S. greenhouse gas emissions.
• The proposed GHG reduction strategy includes the implementation of a multi-sector, market-based cap-and-trade mechanism, which requires decisions regarding program goals, equity, and costs.
• The paper outlines the essential components for a cap-and-trade program, including the scope of coverage (regulated entities and emissions), the initial emissions cap and reduction trajectory, allowance distribution methods, early reduction credits, project-based offset credits, cost-containment measures, and the possibility of linking with other programs.

APA

World Resources Institute (n.d.). Designing a Cap-and-Trade Program For the Midwest. https://www.wri.org/research/designing-cap-and-trade-program-midwest

Chicago

World Resources Institute. Designing a Cap-and-Trade Program For the Midwest. n.d. https://www.wri.org/research/designing-cap-and-trade-program-midwest.

Wikipedia

{{cite report |author=World Resources Institute |title=Designing a Cap-and-Trade Program For the Midwest |url=https://www.wri.org/research/designing-cap-and-trade-program-midwest |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutenddesigning, author = {{World Resources Institute}}, title = {{Designing a Cap-and-Trade Program For the Midwest}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/designing-cap-and-trade-program-midwest}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }