Why support carbon markets?
Carbon markets are a powerful tool for fighting climate change, since they create flexible economic incentives for reducing greenhouse gas pollution. They also reward innovators who develop cleaner technologies.
Pretend you’re a factory owner: How carbon markets help you and the climate
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As long as the total cap is followed, participants who pollute too much are balanced out by lesser polluters. And because greenhouse gases always have a global effect—unlike, for example, mercury emissions, which have a local impact—heavy polluters don't unduly hurt their local communities. This structure allows carbon markets to be easily expanded and linked together.
- 25%Countries representing one-quarter of the world’s economy are putting carbon markets in place.
- 30% The Regional Greenhouse Gas Initiative has helped reduce emissions by 30% in 9 U.S. states since 2009.
- $12 billionAfter California announced a cap on carbon in 2006, more than $12 billion in clean energy venture capital has flown into the state, a figure higher than all other states combined.
- 250 millionChina, with help from EDF, is implementing cap-and-trade pilot programs in seven provinces and cities that encompass 250 million people.
- 1.5%European Union emissions have been decreasing at an average annual rate of 1.5% since the EU launched its carbon market in 2005.
How we’re ensuring the success of carbon markets
EDF is playing a key role in many ways, including:
- WORKING with policy makers and businesses in California, the world’s 8th largest economy, to make sure California’s Global Warming Solutions Act (AB 32) succeeds. A key part of the plan includes a carbon market-like system.
- ENLISTING businesses like Walmart to take early action, setting the stage for a robust national carbon market.
- ENCOURAGING Congress to consider the efficiency and effectiveness of flexible, market-based limits on carbon pollution.
- HELPING China establish a nationwide carbon trading system that links to other carbon markets around the globe, as well as implement pilot projects that reduce emissions and alleviate poverty.
- ADVANCING proposals that reward rainforest nations like Brazil and Indonesia for reducing deforestation.