State's Emissions Cap-and-Trade Program Contains Design Flaws, Industry Report Says

摘要

The Western States Petroleum Association has ramped up its effort to block the January expansion of California's carbon market to include downstream transportation fueling with a new report identifying "design flaws" in the cap-and-trade program. The design flaws have the potential to trigger spikes in allowance prices next year, once the carbon dioxide emissions trading market is expanded and as the end of the first compliance period (Nov. 1, 2015) approaches, the Oct. 16 report said. The report is critical of rules developed by the California Air Resources Board for the emissions trading program. At issue are provisions that limit the amount of allowances any entity can hold at one time, certain cost-containment policies including offset credits and the limiting of auctions to just four a year.