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Four Facts About California's First-Ever Carbon Auction

Climate

Environmental Defense Fund

By Emily Reyna

Photo courtesy of Shutterstock

While millions of Americans recover from the Sandy-Nor’easter extreme weather event combo, and even as President Obama’s remarks about action against a “warming planet” linger, all eyes will be on California this coming Wednesday. This is when the next big event in the climate change conversation will take place.

Between 10 a.m. and 1 p.m. PST on Nov. 14, California will conduct the state’s first ever cap-and-trade auction for climate change pollution. This landmark event will kick off the second largest carbon market in the world, the European Union being the first. Entities covered in the program include utilities, oil refineries, oil producers and large manufactures, though other individuals and organizations can also participate to buy carbon allowances if they meet the state’s rigorous requirements. A practice run was held back in August, and all systems are ready to go. More information about the nuts and bolts of the auction can be read here.

In anticipation of this historic occasion, here are four things to keep in mind:

1. This is the best designed cap-and-trade program in the world
California has the good fortune of learning from predecessor cap-and-trade programs like the European Union Emissions Trading Platform, the Regional Greenhouse Gas Initiative, and the Acid Rain Program, just to name a few. Key elements of California’s program include giving free allowances to industry in the beginning years to help with transition; letting entities bank allowances for future use; and establishing an allowance reserve in case prices exceed a certain value. All help keep carbon prices more stable and make for a well-functioning market.

2. A price will be established for carbon, but that will vary as the program evolves
The California program will include auctions four times a year through 2020—32 more times after November 2012. As such, the number of participants, the settlement price and other results of the first auction may not necessarily predict the activity of future auctions. Over time, the market will change and both prices and participation will fluctuate as the cap reduces and businesses decide how best to participate.

3. Money from the auctions will be used to invest in California’s clean energy future
Proceeds from the auction must be invested in ways that further the goals of the law—the Global Warming Solutions Act of 2006 (AB 32). Though these investments are scheduled to start in the next fiscal year, a specific investment plan is still underway and is being guided by two bills passed at the end of California’s legislative session. Likely project categories include renewable energy, energy efficiency, advanced vehicles and natural resource conservation. In addition, 25 percent of proceeds must be used in ways that benefit disadvantaged communities. These investments will boost clean tech in California, improve air quality and create jobs.

4. California’s leadership will serve as a launch pad for other programs
California is the ninth largest economy on the planet, and the world is watching. No state or country can stop climate change alone, but California’s environmental policies have a history of success and replication, including clean car, clean fuel and energy efficiency standards that have saved consumers across the U.S. hundreds of billions of dollars in avoided energy purchases. If the past is any indicator, California’s rich history of leading the nation on responses to critical environmental problems, while delivering wide ranging benefits, means the U.S. is on the brink of something special.

A public notice of the auction results will be released on Monday, Nov. 19, 2012, and will be posted to both the Air Resources Board and auction website.

Visit EcoWatch’s CLIMATE CHANGE page for more related news on this topic.

 

EcoWatch Daily Newsletter

Pexels

By Zak Smith

It is pretty amazing that in this moment when the COVID-19 outbreak has much of the country holed up in their homes binging Netflix, the most watched show in America over the last few weeks has been focused on wildlife trade — which scientists believe is the source of the COVID-19 pandemic. Make no mistake: Tiger King: Murder, Mayhem and Madness is about wildlife trade and other aspects of wildlife exploitation, just as surely as the appearance of Ebola, SARS, MERS, avian flu and probably COVID-19 in humans is a result of wildlife exploitation. As a conservationist, this is one of the things I've been thinking about while watching Tiger King. Here are five more:

1. We are in a biodiversity crisis.

A million plant and animal species are threatened with extinction, many within decades, including tigers. The leading drivers of species decline and the impending collapse of ecosystems are ocean and land use changes (like converting wildlands into other uses, usually agricultural) and the direct exploitation of species (like taking animals out of the wild for eating, "medicinal" purposes, or status motives). It is for these exact reasons that there are more tigers in cages in the United States than there are in the wild. Developers continue to destroy tiger habitat and, in the not-so-distant past, hunters shot and killed tigers for sport or for trade in tiger products (and some still do illegally).

2. We must fundamentally change our relationship to nature.

Transformative change is necessary to limit species extinctions and secure human well-being (functioning ecosystems provide the clean air, clean water, carbon sequestration, flood control, healthy soils, pollination of plants and healthy coastal waters humans need to survive). Transformative change in this context means "a fundamental, system-wide reorganization across technological, economic, and social factors, including paradigms, goals, and values." We aren't going to halt the loss of species and strengthen ecosystems if we continue to treat wild plants and animals as expendable and renewable resources that we can use however we want. The tigers and other animals in Tiger King are exploited for profit and personal interests. Regardless of how they may be respected, coveted, or cared for, they are still treated as exploitable objects, which reinforces other destructive attitudes toward nature. A tiger cub is something to be held and photographed, a wetland is something to be filled and built upon, a rhino is something to be killed so we can use its horn for fake medicine. It's a view of nature as being in service to human wants, an attitude that is destroying our planet and one that must change.

3. Most wildlife trade should be banned and we should protect more wild places.

As noted above, ocean and land use changes and direct exploitation of species are causing an extinction crisis and threaten the ecosystems we depend on for human well-being. In line with our exploitative mindset, we've been stuck for centuries with economic and social patterns that allow unfettered use of wild places and wildlife until there's a problem. We need to flip that model on its head and only use wild places and wildlife if we can affirmatively demonstrate that such use won't contribute to the biodiversity and climate crisis. Tigers and the other animals appearing in Tiger King wouldn't be endangered today and wouldn't require "sanctuaries" if we hadn't destroyed their habitat and taken them from the wild for food, pets, "medicine" and trophies.

To set things right, we should ban most wildlife trade and protect more of the natural world. I say "most" wildlife trade to account for the exception of well-managed fisheries. NRDC has long sought to limit irresponsible wildlife trade (fighting for imperiled species internationally, supporting state efforts to limit trade, providing recommendations to China on revisions to its wildlife law), and now we must go further by banning most trade. In addition, we should support efforts to set aside vast swaths of ocean, land and terrestrial water to rebalance the functioning of our natural world. That's why NRDC and others support an initial call of protecting 30 percent of the world's oceans, lands and water areas by 2030. In China, we're protecting areas in a way that helps tigers by supporting the government's development of a National Park system, with targeted efforts on one of its pilot parks, the Northeast Tiger and Leopard National Park, which provides an important habitat for China's struggling populations of Amur tigers and leopards.

4. Not​ all sanctuaries are sanctuaries.

A lot of so-called sanctuaries are dumpster fires; they serve no purpose other than exploitation of animals for profit, and the animals suffer needlessly. It doesn't look like the Greater Wynnewood Exotic Animal Park — the park formerly owned by Joe Exotic — is a sanctuary, though it styles itself as being one, so the public may be confused. According to the International Fund for Animal Welfare, legitimate sanctuaries "do not breed, allow public contact with, sell, or otherwise exploit the animals that they take in." Legitimate sanctuaries can play an important role in saving imperiled species, promoting animal welfare, and educating the public. But those that do not meet strict standards are part of the problem, not the solution. The Global Federation of Animal Sanctuaries (GFAS) provides accreditation for sanctuaries that abide by a set of policies, including the maintenance of a nonprofit/noncommercial status. Big Cat Rescue, which is featured in the Tiger King series, "has held GFAS Accreditation status since 2009."

5. Changing our relationship to nature must include a just transition.

Throughout the world and in the United States, millions of people use nature in destructive ways for their livelihoods. I don't say this with judgement; often, people are just doing what we've always done — business as usual — which is unfortunately destroying the planet. Workers in the fossil fuel industry, fishermen in unsustainable fisheries, clearcutters in the tropics and boreal forests, and even people working at fake sanctuaries depend on the current system of exploiting nature to provide for themselves and their families. Unfortunately, it's at the expense of other people who depend on healthy, thriving ecosystems for their livelihoods and at the expense of human well-being overall. If we want to succeed in charting a new path for our planet, we must commit to making people and communities whole. The rampant exploitation appearing on the screen in Tiger King isn't just of wildlife — it is also of many desperate people brutalized by a political and economic system providing few options. We're not going to successfully realign our relationship with nature if we don't provide the necessary support for people and communities to transition to more sustainable, ethical means of providing for themselves and their families.

So, watch Tiger King and see if for you, like me, it informs the horror of the current moment, then maybe think about building a different world when we come out of this — a vibrant, natural world filled with wildlife and wonder, where we orient ourselves around preserving nature, not exploiting it, and embark on a new human journey.

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