Big Week in the "Real" CSR – Climate Saving Regulation

It’s been a big week in Greenhouse Gas regulation land.  Huge boost for cleantech sales executives and afficianados everywhere.

EPA announces a slightly delayed and somewhat more limited GHG regulation rule.

Starting in July 2011, all facilities greater than 75,000 tons per year in emissions will have to get GHG permits.

And John Kerry and Joe Leiberman push ahead in the Senate with cap and trade and climate saving legislation.

Lots of good in here:

– Power sector gets capped early on
– Industrial/manufacturing gets phased in
– Transport included down the road as well
– Domestic offsets included (think massive cashflows to the ag belt)
– International offsets included
– International linkages included
– Phased in border tax for non participating countries

And then:

– Riddled with subsidies and wealth transfer and buy-offs, but isn’t that just par for the course with Washington? 
– Price collar ($12-$25/ton) – guts the heart of compliance (market based mechanism to set a “real” carbon price, but the Senate should tell the market what the right price should be?  Joe? John? You do actually WANT emissions reductions, right?)
– And no Republican support – guts the odds of passage.

All in all a good week, even though the EPA will get sued six ways to Sunday and without Republican support Kerry-Leiberman has zero chance of passage, we’ll give it a two thumbs up.  This is a drastic improvement.

Neal Dikeman is the editor of www.CleantechBlog.com, a partner at Jane Capital Partners LLC, and the Chairman of Carbonflow.

3 replies
  1. Justin
    Justin says:

    Just a quick point of information: the price collar will be maintained by a strategic reserve of allowances, which are set aside. They dip into this pool if the price bumps into the ceiling. These allowances are contained with the 17% reduction cap, and therefore this doesn't "gut" the heart of compliance per se. A true "safety valve" where allowances are created out of thin would be another story and consistent with your concerns. From an investment perspective, this also makes sense because it creates a more stable price signal.There are other components of the bill which do warrant investigation from an environmental perspective, including the 2 BN pool of offsets.Justin Feltwww.pointcarbon.com

  2. cheap flights pakist
    cheap flights pakist says:

    They dip into this pool if the price bumps into the ceiling. These allowances are contained with the 17% reduction cap, and therefore this doesn't "gut" the heart of compliance per se. A true "safety valve" where allowances are created out of thin would be another story and consistent with your concerns.

  3. cheap flights pakistan
    cheap flights pakistan says:

    They dip into this pool if the price bumps into the ceiling. These allowances are contained with the 17% reduction cap, and therefore this doesn't "gut" the heart of compliance per se. A true "safety valve" where allowances are created out of thin would be another story and consistent with your concerns.

Leave a Reply

Want to join the discussion?
Feel free to contribute!