Mike Nemer and Mike Taylor, President and Founder of Emissions Experts discussed in episode 296 of The Green Insider podcast, Washington State’s adoption of California’s program and efforts to link with other states and provinces.
California Cap and Trade Overview:
- Mike Taylor, an expert in environmental credits with 25 years of experience, discussed the California Cap and Trade program, which began in 2013 for entities emitting over 25,000 tons of CO2 annually
- The program includes power facilities, fuel suppliers, mining companies, and cement manufacturers
- Large entities consuming natural gas in California are likely to comply with the program
- California’s Cap and Trade Overview:
- Entities emitting over 25,000 tons of CO2 must offset their emissions, with prices increasing annually due to a floor price set at CPI plus 5%
- Large companies often pass through costs, while small suppliers can benefit from lower compliance obligations
- California is taking a more measured approach by reducing supply and extending the program to 2045
- California Carbon Trading System Overview:
- Companies can meet their compliance obligations through a combination of California carbon allowances and carbon offsets
- Carbon allowances are issued by the California Air Resources Board, while carbon offsets are earned through private initiatives like improved forestry management
- Washington’s new carbon trading program, launched in 2023, is attempting to link with California’s system
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