WCI releases Draft Design Recommendations
Posted by Grant Boyle
The Western Climate Initiative (WCI) released Draft Design Recommendations on elements of its cap and trade program on May 16, 2008 The recommendations are likely to have a significant impact on the implementation of BC’s new cap and trade law - Bill 18, which is currently in its second reading in the BC Legislature. The WCI is a regional initiative, including Arizona, California, New Mexico, Oregon, Washington, Montana, Utah, BC, Manitoba, and Quebec (Saskatchewan, Ontario and several other US and Mexican states have observer status). Partners under the WCI have agreed to a regional GHG reduction target of 15% by 2020 from 2005 levels.
The Draft Recommendations suggest the WCI cap and trade program will cap GHG emissions from electricity, large stationary combustion sources, industrial process and waste management, and fossil fuel production and processing. The Draft Recommendations also contemplate the inclusion of transport emissions, which comprise about 36% of total emissions in the region. Under the proposal, Partners would have a GHG allowance budget set to 2020 and would issue allowances to regulated entities in their respective jurisdictions. WCI allowances would have equivalent use and value throughout the WCI region. The plan also recommends each Partner auction a minimum percentage of allowances ( 25-75%). The regional cap and trade system would also include a system for offset credits. The Draft Recommendations strongly endorse reliance onThe Climate Registry for the cap and trade program’s GHG reporting system.
Final design recommendations are due September 2008, along with expected timelines for state and provincial implementation.