rssBoxer Bill to Include Upper and Lower Limit on Carbon Price
Thursday, September 17, 2009 at 12:28 pm
- 4 Comments
The anticipated climate legislation from Sen. Barbara Boxer (D-Calif.) will include an upper and lower limit on the price of carbon, a significant change from the measure that passed the House that is designed to gather more support for the measure in the Senate.
The measure, often called a “price collar,” is designed to stabilize the price of the credits that polluting entities would need to acquire under a cap-and-trade system. The provision is popular with many swing-vote senators and industries, as it helps lessen worries about price swings and curb market speculation. And setting a floor price is preferable to environmental advocates, who don’t want to see prices drop so low that there is no incentive for businesses to reduce their carbon (see our earlier post on this subject).
Reports The Energy Daily (sub. req’d):
The draft legislation, which Boxer (D-Calif.) plans to introduce at the end of the month, would establish an initial allowance price ceiling of $28 per metric ton of carbon dioxide and a price floor of $11, with the prices adjusted upwards annually thereafter, according to a source familiar with the measure.
Under the provision, if heavy demand pushed allowance market prices above the $28 ceiling, the government would borrow allowances from future years and sell them to regulated entities at the ceiling price, a move that in theory would reduce demand for allowances and lower prices.
The inclusion of a price collar is reflective of Boxer’s drive to keep the costs of a climate bill low.
4 Comments
Pingback posted September 17, 2009 @ 12:34 pm
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Comment posted September 17, 2009 @ 7:48 pm
Support for cap-and-trade has evaporated. Daily I read editorials, comments and letters-to-the-editor from all over the nation. Whereas when the House passed the cap-and-trade bill it was maybe 2-to-1 against cap-and-trade, opinion now is off the charts against it.
Frankly, I don't see Americans supporting cap-and-trade or any CO2 regulation until we have our own Climate Truth Commission. We now largely out-source our climate science to the United Nations, a political organization, dedicated to advancing their “consensus” view that CO2 drives global warming. The problem is, their view is neither a consensus and can't possibly be 100% correct because they don't factor-in clouds and solar activity:
You don't have to be a climate scientist to understand why the U.S. should not follow the UN's lead:
1) The 600 climate scientists who worked on the UN's Climate Change 2007 report never voted on the 'drives' issue. That conclusion was reached by only about 50 scientists plus UN bureaucrats.
2) The UN has a huge conflict of interest. The 'Kyoto Protocol' is their's and they have a vested interest in demonizing CO2.
3) Thousands of knowledgeable people and climate scientists worldwide tell us the UN is wrong.
4) Past climate changes–100s of them–were driven by Mother Nature, not mankind. Yet, the UN took Mother Nature off the table when they limited their evaluation to 'climate change caused by human activity'.
5) There is no 'smoking gun.' The proof that CO2 drives global warming is circumstantial.
6) The UN treats unproven climate projections as 'fact', yet UN forecasts for the last 10 years do not fit what actually happened.
7) The UN used faulty data to bolster unwarranted findings in the past.
The United States needs our own objective, transparent climate commission to think-through global warming. We need the advice of a bi-partisan Climate Truth Commission before we burden our economy with expensive energy. Both sides of the man-made global warming issue should welcome such an approach. …each is so sure of themselves.
– Robert Moen, http://www.energyplanUSA.com
Comment posted September 20, 2009 @ 1:16 pm
Nowadays, the world-wide overpopulation growing consistently is using up tremendous fossil fuel at an alarming pace as the own conventional resources in some dense countries is facing drastic dent.
For that reason, it is widely accepted that the price of fossil fuel is expected to go up and up simply, which is behind major states taking a bold and speedy action in a bid to put the global economy on a solid ground.
Relying on worthless, painful and wasteful oil wars, that is, the original source of this great recession, to waste time bickering on meaningless things and drag feet on a defining energy bill are sure to shake the embryonic effect of stimulus package that is an interim measure for main events of new foundation.
As with “Inaction” cost, $9trillion over the next decade in health care and social security, supposedly the same is of inaction on the most-needed energy bill.
Pingback posted September 24, 2009 @ 5:15 am
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