Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016

This fact sheet from the World Resources Institute outlines potential compliance costs for industrial subsectors under a cap-and-trade policy scenario with no rebates in 2016, specifically referencing the American Power Act (APA).

• In a scenario where no rebates are provided, most industrial subsectors would experience compliance costs ranging from 1% to 6% of their value of shipments.
• The subsectors identified as being at the highest risk in the absence of rebates are industrial gas, alkalies and chlorine, carbon black, and nitrogenous fertilizers.
• Future climate policy proposals may alter the criteria for free allowances, including the potential for no free allowances to be distributed to industry. Additionally, there is a possibility that the free allowances established by the American Power Act (APA) might not sufficiently cover the total emissions obligations for eligible subsectors.

APA

World Resources Institute (2016). Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016. https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates

Chicago

World Resources Institute. Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016. 2016. https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates.

Wikipedia

{{cite report |author=World Resources Institute |title=Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016 |date=2016 |url=https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2016illustrative, author = {{World Resources Institute}}, title = {{Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016}}, institution = {World Resources Institute}, year = {2016}, url = {https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }