Amsterdam Law Forum (Feb 2010)
Cap and Trade Offsets: the Case for following RGGI’s Model Rule
Abstract
<!-- /* Font Definitions */ @font-face {font-family:Cambria; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:Garamond; panose-1:2 2 4 4 3 3 1 1 8 3; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin-top:0in; margin-right:0in; margin-bottom:10.0pt; margin-left:0in; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-ascii-font-family:Cambria; mso-fareast-font-family:"Times New Roman"; mso-hansi-font-family:Cambria; mso-bidi-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --><!--StartFragment--><p class="MsoNormal" style="margin-bottom: 0.0001pt;"><span style="font-size: 13pt; font-family: Garamond;">The cap-and-trade of pollutants is often seen as the most politically acceptable form of regulating pollutants, such as carbon dioxide (CO<sub>2</sub>), as it is seen as the lowest cost alternative of regulation, and allows for innovative market responses within the regulated framework to lower costs.<span> </span>One of the regulation mechanisms that can be used to allow for these market innovations within a cap-and-trade market is inclusion of offsets into the market’s framework. The Regional Greenhouse Gas Initiative Model Rule offset provisions use a standards based approach to offsets, addressing many of the potential issues with implementing an offsets program, providing an excellent model for developing offset provisions.</span></p><!--EndFragment-->
