Emissions Markets: Cap & Trade

What Factors Can Make Cap & Trade Successful?

With climate change now well-recognized as a serious problem, policy makers throughout the U.S. are considering options to reduce greenhouse gas emissions. Chief among these options is a cap and trade system.

Nearly every bill proposed in the U.S. Congress relies on a cap and trade system as the core policy to reduce carbon emissions. At the same time many still question cap and trade as the right tool to achieve the emissions reductions needed to combat climate change. In some programs cap and trade systems have stumbled, while in others cap and trade has achieved results beyond all expectations. This paper explores why, and identifies six critical factors for ensuring the success of cap and trade systems. If these elements are in place, the likelihood of success for any cap and trade program will be very high.

Download this paper to review past experiences and understand the critical success factors for cap and trade systems.

Cap and Trade: An Overview (Full Paper)

Cap and Trade: Success Factors (1-Page Summary)