North American GHG Emission Targets by Region
Domestic carbon markets are emerging rapidly, as impending federal and state level carbon legislation impels large emitters to start managing their carbon exposure. Voluntary markets have also risen in response to public sentiment regarding the dangers or climate change and corporate goals to “go green.”
In the United States, a national carbon cap-and-trade market is imminent, and regional markets are scheduled to commence within two years, creating vast opportunities in what could become the largest commodities market.
State-level activity for GHGs is not limited to the two coasts. States in the Midwest – including Illinois and Minnesota – are also considering mandatory cap-and-trade markets and linkages to other programs. Currently, 23 states have passed goals or regulations to reduce GHGs.
On the federal front, 11 bills have been introduced thus far in the 110th Congress that centered on tackling climate change. Most of these bills focus on a cap-and-trade system to reduce GHGs and vary in terms of which industries and facilities are regulated. For example, the Lieberman-Warner bill, considered among the most stringent, regulates 80% of domestic CO2 emissions – including those from the transportation sector – and requires a 70 percent reduction in emissions by 2050. Congressional activity indicates that a federal GHG bill is most likely to pass after the 2008 presidential election.
Element Markets is one of the earliest participants in the North American carbon markets and is well positioned to capture opportunities presented by carbon legislation. Our teams of energy and commodity veterans are dedicated to being the prominent player in the rapidly evolving global carbon markets.