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Good news, Bad news: Cap-and-Trade Program Update

Thu, Mar 19, 2009

8. News

The permits for emissions under the cap–and-trade program are expected to cost more, reports WSJ. That’s good news for cleaner energy technologies like solar, wind, clean coal and nuclear. But it’s bad news for power companies because the costlier permits will mean higher energy costs.

The Obama administration is expected to raise 2/3 times more climate revenue than the estimated budget of $646 billion through 2019. WSj cites three ways to raise the climate revenues by double and triple digits:

  • Sell more permits and give less as free (Problem: The budget already plans to sell 100% permits)
  • Bring more industry sectors under the climate plan (The plan already spans economy-wide)
  • Sell same number of permits at $40 and more per ton (only option)
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