On March 31 2009 the Energy and Environment Sub-Committee of the US Congress released a draft of the ‘American Clean Energy and Security Act 2009′. This is an early discussion draft; however, it does include some explicit information on the nature of the expected US domestic carbon market.
The major points of interest are:
- 4.7bn allowances are planned for 2012, although no more than 2bn of these can come from offsets each year
- REDD credits are included within this offset provision
- Significantly, 1 US credits will equal 1.25 offsets from the international market, potentially pushing the carbon price higher through exchange-rate fuelled demand.
At present it is unclear what part the Chicago Climate Exchange, as well as the RGGI, may play in this system.
The sub-committee hopes the bill will complete its legislative passage by the end of May. While much detail remains to be finalised during the ‘discussion period’ for this draft, such an ambitious timetable suggests that the sub-committee expects a swift resolution to any potential problems.
A link to the draft can be found here.
8 April 2009
I think the American Clean Energy and Security Act of 2009 is a potentially landmark first step to usher America into a powerful clean energy economy that will create millions of jobs for American workers, save consumers and businesses hundreds of billions of dollars in energy costs, make our country energy independent, and limit global warming pollution. While very comprehensive, the bill, as presently written, still have areas that need further improvements to meet science-based goals to combat the threat of global warming in the immediate future. We must also ensure that workers in older industries that are highly reliant on carbon based energy – and the communities in which they’re concentrated – are provided with the assistance and tools necessary to make the transition to the clean energy economy. I ask Congress to continue to work to strengthen these provisions before it is voted on.