Connect with us

Hi, what are you looking for?


Cap And Trade

Waxman-Markey Cap and Trade Will Pay For Itself, CBO Finds

The Waxman-Markey Climate Bill uses Cap and Trade to get our current 6 billion tons of CO2 a year down to just over 5 billion tons a year by 2020 (20% by 2020) and continuing down further by 2050.

The Congressional Budget Office has estimated that the auction proceeds of the current Cap and Trade bill would increase Federal revenues by about $846 billion by 2019.

That would more than fund the $821 billion in renewable energy spending that it will take (per the CBO) to reduce the national carbon footprint by almost a billion tons a year on deadline, and would leave $25 billion in the bank for additional renewable energy projects.

This revenue would fund programs that reduce carbon emissions and that cut the cost to individuals and businesses. Some examples over the jump:

  • Provide energy tax credits or energy rebates to small business and low and middle income families to offset the impact of higher energy-related prices.
  • Require utilities to buy an increasing percentage of energy from renewable power and provide assistance like loan guarantees for clean energy projects.
  • Fund research and development of technologies related to carbon capture and sequestration.
  • Fund $25 billion in DOE loans to automobile manufacturers and component suppliers under the current Advanced Technology Vehicle Manufacturing Loan Program.
  • Establish a Clean Energy Deployment Administration (CEDA) within the Department of Energy (DOE), which would be authorized to provide direct loans, loan guarantees, and letters of credit for clean energy projects.
  • Authorize the Department of Transportation to provide individuals with vouchers to acquire new vehicles that achieve greater fuel efficiency than the existing qualifying vehicles owned by the individuals.
  • Authorize appropriations for various programs under EPA, DOE, and other agencies.

According to the Congressional Budget Office, Waxman-Markey would cover about 72% of US emissions initially and by 2020 that would be up to 86 percent. The initial auction reserve price for carbon would be $10 a ton; stepping up to $15 by 2020 (and on up to $64 a ton by 2050.)

Cap and trade offers maximum flexibility, clear and feasible goals, and a predictable time-line:

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Pages: 1 2 3

Written By

writes at CleanTechnica, CSP-Today and Renewable Energy World.  She has also been published at Wind Energy Update, Solar Plaza, Earthtechling PV-Insider , and GreenProphet, Ecoseed, NRDC OnEarth, MatterNetwork, Celsius, EnergyNow, and Scientific American. As a former serial entrepreneur in product design, Susan brings an innovator's perspective on inventing a carbon-constrained civilization: If necessity is the mother of invention, solving climate change is the mother of all necessities! As a lover of history and sci-fi, she enjoys chronicling the strange future we are creating in these interesting times.    Follow Susan on Twitter @dotcommodity.


You May Also Like

Climate Change

While I watched the chilled host on the Macy’s Day Parade television broadcast talk about Tofurky as a vegan Thanksgiving substitute, I can’t say...


Environmental lawmaking to address global warming continues to confront hurdles, especially in conservative media, as money drives polarization over measures to tackle the climate...


A turkey is a symbol of US Thanksgiving dinner traditions. But how do you make flexitarians -- guests who prefer vegetarian or vegan eating...


New building codes in Washington state heavily incentivize electric heat pumps -- and they're good for even the coldest climate there. It's a trend...

Copyright © 2022 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.