Midwestern Greenhouse Gas Reduction Accord中西部温室气体减排协议.pptVIP

Midwestern Greenhouse Gas Reduction Accord Ray Hammarlund Kansas Corporation Commission April 28, 2009 Midwestern Greenhouse Gas Reduction Accord November 2007 – Jurisdictions agreed to establish reduction targets multi-sector cap-and-trade program December 2008 – Preliminary recommendations released by Advisory Group Advisory Group comprised of public, private, non-governmental institutions May 2009 – Finalize design recommendations September 2009 – Release model rule January 2012 – Planned program commencement Will be finalized in May Emission reduction targets 15-25% below 2005 levels by 2020 60-80% below 2005 levels by 2050 Preliminary Scope Electricity generation and imports Industrial combustion sources Industrial process sources w/ credible monitoring protocols Fuels serving residential, commercial and industrial buildings [phased in during the 2nd comp. period] Transportation fuels [pending modeling results] Offset limits not yet finalized Core Design Elements Borrowing is allowed Allowance allocation designed to smooth transition to low-carbon economy Robust offsets framework with formalized mechanism to develop new high-quality standards-based protocols Unique MidwesternParameters Must not compromise the integrity of the cap-and-trade program, and therefore must be real, additional, verifiable, permanent, and enforceable Must address uncertainty, leakage, and non-compliance Must be adaptable, transparent, and as administratively simple and cost effective as possible without compromising the other principles Should be developed in a manner that will facilitate linkage with other programs Offset Principles Offset Requirements Real Offsets must represent actual emission reductions and not artifacts of incomplete or inaccurate accounting. The effects of a project on GHG emissions must be comprehensively accounted for, and “leakage” in emissions must be factored into the quantification of emission reductions.