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.