A year after the launch of its cap-and-trade program, California formally linked its emissions trading scheme with Quebec’s—enabling carbon allowances and offset credits to be exchanged between participants in the two jurisdictions. The linkage, which marks the first agreement in North America that allows for the trading of greenhouse gas emissions across borders, is designed to escalate the price on the amount of carbon businesses can emit.
There is a “potential for this market to serve as an example for other North American subnational jurisdictions to follow if it can prove to be successful,” said Robin Fraser, a Toronto-based analyst with the International Emissions Trading Association.
Meanwhile, the European Union (EU) opted to beef up its carbon trading system. Carbon prices are poised to rebound from a three-year decline after the 28-country bloc decided to back a stopgap plan to reduce the number of pollution permits that have flooded the market. As a result, the cost of emitting carbon dioxide may increase more than 50 percent on average to $10.54 a metric ton by the end of 2014.
The “backloading” plan aims to remove 900 million permits from the EU market between now and 2016. The date on which the law is formally adopted will drive the quantity of permits that can be withdrawn from auctions this year.
“If the auction calendars can still be adapted by end-March, a total of 400 million allowances will be backloaded for 2014. This amount will be reduced to 300 million if backloading is initiated in April, May or June,” according to the European Commission.
EPA Power Plant Rule Open for Public Comment
The U.S. Environmental Protection Agency’s (EPA) draft proposal limiting carbon emissions from new power plants was published in the Federal Register Wednesday, triggering a 60-day public comment period.
The delay between the Sept. 20 announcement of the rule and the Jan. 8 Federal Register inking had prompted speculation about whether the agency was reconsidering the controversial rule requiring plants be built with carbon capture and storage (CCS) capabilities if they burn coal (subscription). The rule has drawn criticism from coal industry supporters, who say that CCS technology is not viable. EPA Administrator Gina McCarthy, sees things differently.
“We have proven time after time that setting fair Clean Air Act standards to protect public health does not cause the sky to fall,” McCarthy said in September. She noted that the proposed rule, “rather than killing the future of coal, actually sets out a certain pathway forward for coal to continue to be part of a diverse mix in this country.”
Another EPA rule that’s meant to remove potential obstacles to implementation of CCS was also published in the Federal Register. This rule, according to the EPA, is expected to “substantially reduce” the uncertainty associated with identifying carbon dioxide streams under the Resource Conservation and Recovery Act as well as to facilitate deployment of geological sequestration.
Eruption of “Supervolcano” Could Have Global Climate Effects
A new study suggests that the magma chamber beneath one famous national park is 2.5 times larger than previously known and that it could have the potential to erupt with a force 2,000 times greater than Mount St. Helens in 1980.
Although there isn’t enough data to predict the timing of another Yellowstone eruption—the last one happened about 640,000 years ago—study scientists say instruments monitoring seismic activity would provide some warning. That eruption would leave volcanic material and gases lingering in the atmosphere that could result in a global temperature decrease.
“You’ll get ashfall as far away as the Great Plains, and even farther east,” said University of Utah scientist James Farrell of the findings presented at the American Geophysical Union’s fall meeting.
Two separate studies in the journal Nature Geoscience suggest just how the magma in “supervolcanoes” like the one in Yellowstone blow sky high: the buoyancy of the magma exerting pressure on the magma chamber walls eventually causes the chamber roof to collapse. Though rare, supervolcano eruptions have a devastating impact on the Earth’s climate and ecology, reports BBC.
The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.