California’s “self-correcting” cap-and-trade auction mechanism does not eliminate market overallocation

ARB staff have suggested that California’s “self-correcting” cap-and-trade auction mechanism will address overallocation. Our calculations show this “self-correction” mechanism will eliminate only a fraction of the overallocation expected by 2020.

Ready, fire, aim: ARB’s overallocation report misses its target

The California Air Resources Board’s report on allowance overallocation in the cap-and-trade program does not address whether overallocation will cause the state to exceed its 2030 climate target—and also makes a fundamental methodological error that undermines the Report’s own conclusions.

California’s Cap-and-Trade Reforms: March 2018 Comment Letter

At a workshop earlier this month, ARB released its initial thinking on how to implement the post-2020 market design reforms required by AB 398. We comment on ARB’s overall market design proposal and proposed interpretation of AB 398 offsets limits.

Interpreting AB 398’s carbon offsets limits

The California Air Resources Board has released its initial thinking on how to incorporate new limits on the use of carbon offsets in its post-2020 cap-and-trade market design, as required by AB 398. We review two key issues here.


“Another Western grid plan bites the dust,” E&E News

“Full regionalization isn’t ‘strictly necessary to do most of the things that people advocate for,’ said Danny Cullenward, a research associate at the think tank Near Zero who has been studying the issue. ‘The notion that there’s one true path, I think, is deeply misguided.'”


Linking, banking, and offsets

In discussions of California climate bill SB 775, one of the issues that has drawn the most criticism—and frankly, the most inaccurate criticism—regards linking the state’s cap-and-trade market with similar markets in other jurisdictions

credit for header photo: Krystle Mikaere