EXPLAINER | Cap-and-trade
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Cap-and-trade

Cap-and-trade is a market-based way to reduce pollution. It was first used successfully in the U.S. in the 1990’s, under former President George H.W. Bush to reduce sulfur dioxide, which causes acid rain.
Around the world,  more than 40 governments, in an effort to combat climate change, have put some sort of price on carbon—either by directly taxing fossil fuels, implementing cap-and-trade, or doing both. In the U.S., cap-and-trade systems are in place in California, and in the Northeast.

Pennsylvania is currently studying a citizen-led petition to implement an economy wide cap-and-trade system, modeled on California’s.

Here’s a brief explainer:

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Updated: September 15, 2020 | 1:55 pm

RGGI, behind the rhetoric: What we know about the Regional Greenhouse Gas Initiative

The Environmental Quality Board voted Tuesday to approve a draft regulation that would have Pennsylvania join RGGI. It next goes up for public comment.

By Rachel McDevitt

Bill to keep Pa. out of regional cap-and-trade program passes, but faces governor’s veto

House Bill 2025 would require legislative approval for Pennsylvania to enter a program such as the Regional Greenhouse Gas Initiative.

By Rachel McDevitt

House committee takes first step to block Pa.’s entry into regional cap-and-trade program

The bill would bar the Department of Environmental Protection from taking any action that is designed to control carbon dioxide emissions, including participation in a regional greenhouse gas cap-and-trade program such as RGGI, unless the action is authorized by the General Assembly.  

By Rachel McDevitt

Wolf’s cap-and-trade proposal takes a step forward

The Democratic governor issued an executive order declaring Pennsylvania would join a regional agreement aimed at reducing greenhouse gas emissions. Not everyone is on board.

By Katie Meyer

Public input sought for potential region-wide transportation emissions cap-and-invest program

Pennsylvania may soon join a regional program meant to limit greenhouse gas emissions and increase investments in green transportation.

By Kathleen Davis/WESA

Updated: November 19, 2019 | 6:52 pm

Lawmakers, criticizing Wolf’s executive order on joining cap-and-trade program, say it’s their call to make

Proposed bill would require Legislature to OK Pennsylvania becoming part of Regional Greenhouse Gas Initiative
By Scott Blanchard

Lawmaker: Proposal for Pa. cap-and-trade system to cut carbon emissions is ‘a beginning’

The bill would allow Pennsylvania to set its own cap, or negotiate with a group of other states in a regional program.

By Dana Bate/WHYY

PJM, nation’s largest power grid operator, grapples with carbon pricing as states diverge on climate policies

The organization is trying to walk a fine line between respecting states’ rights while figuring out how to incorporate diverse climate polices into its wholesale electricity market.

By Marie Cusick

What is cap-and-trade?

By Marie Cusick

Citizen climate petition advances, after state board approves further study of cap-and-trade program

The ramifications of the petition could be politically significant– allowing significant climate policy to be implemented without new legislation.

By Marie Cusick
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