Policy Solutions

All Policy Documents Tagged cap 2.0

A Clean Energy Bargain
More Jobs, Less Global Warming Pollution, and Greater Security for Less Than the Cost of a Postage Stamp a Day

Issue Paper

The United States took an important step toward economic recovery, environmental protection, and energy security when the House of Representatives passed the American Clean Energy and Security Act (ACES). This sound climate and clean energy legislation will protect the planet for less than the cost of a postage stamp a day per household, and represents a great investment in America's future — now it's up to the Senate to turn this bill into a law.

Analysis of H.R. 2454, the American Clean Energy and Security Act (ACES)

Legislative Analysis

An analysis of H.R. 2454, the American Clean Energy and Security Act (ACES), outlining the potential of the legislation for creating millions of jobs, breaking our dependence on oil, and reducing the pollution that causes global warming. The analysis also includes suggestions for strengthening this critically important legislation. Get document in pdf.

Boosting Energy Efficiency Nationwide Through Measurement and Performance-Based Rewards

Fact Sheet

Energy efficiency is the most cost effective means for reducing global warming pollution. According to McKinsey and Company, the energy bill savings from efficiency investments could roughly offset the cost of implementing a mandatory carbon cap. And many of these investments already make sense economically: McKinsey estimates that a $50 billion per year investment could result in $1.2 trillion in energy bill savings by 2020 while reducing end-use energy consumption by about 23 percent of projected demand. In addition to saving Americans money on their utility bills, investments in energy efficiency would put downward pressure on electricity, natural gas, and carbon allowance prices (when a carbon cap has been established), while creating 600,000 to 900,000 new jobs. Establishing a reliable measurement for energy efficiency performance and rewarding success in improving performance will help America reach its full energy-saving potential. Get document in pdf.

DOs and DON’Ts for Creating Carbon Price Safeguards

Legislative Analysis

As the Senate takes up energy and climate legislation, many are considering the best approach to meet a strong cap on carbon emissions while assuring that carbon allowance prices remain reasonable and that market abuses are prevented. The core tools we need are a means to provide additional allowances to the market without breaking the law’s emissions cap, and a robust set of market regulation safeguards against market abuse. With these tools, Congress can deter price manipulation and place effective limits on prices without compromising the law’s vital climate protection objectives.
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Top 10 Reasons the Senate Should Pass Climate and Energy Legislation This Year

Legislative Analysis

The House passed the American Clean Energy and Security Act (ACES) at the end of June. The House bill is not perfect (no legislation is), but it addresses concerns about cost, consumer protection, regional impacts, and industrial competitiveness that are key to success in the Senate. Now it is the Senate's turn to act. This fact sheet details the top 10 reasons the Senate should move this fall to pass strong and comprehensive energy and climate legislation. Get document in pdf.

Opportunities for Agriculture
ACES legislation will bring new energy and income to America's farmers

Fact Sheet

The American Clean Energy and Security Act (ACES) includes significant benefits for American farmers, including incentives for increasing energy efficiency and deployment of renewable energy sources. In addition, under the cap and invest system envisioned by the legislation, farmers could earn additional income through the sale of offsets -- credits for reductions in direct emissions or enhanced carbon sequestration on the farm. This legislation would provide the support that farmers and ranchers need, help them create new jobs and transform their businesses to succeed in a more secure and sustainable clean energy future. Get document in pdf.

Scaling Up Investment in Energy Efficiency with a Federal Energy Efficiency Financing Facility (FEEFF)

Fact Sheet

Despite the numerous benefits that stem from increasing energy efficiency and distributing clean power generation technologies in the buildings sector, current levels of investment fall far short of what is achievable and necessary. In today’s economic climate, many worthwhile projects are simply unable to obtain the financing they need and it is unclear whether existing government programs such as loan guarantees will be sufficient to overcome this shortfall. Creating a complementary Federal Energy Efficiency Financing Facility (FEEFF) to support investment in efficiency projects would provide access to much-needed capital and help move our nation toward a clean energy economy. Get document in pdf.

Reducing Pollution Outside of the Carbon Cap: The Role of Offsets and Complementary Policies

Fact Sheet

Reducing overall domestic emissions at least 20 percent below 2005 levels by 2020 and at least 80 percent by 2050 will require emissions reductions not only from large stationary sources of global warming pollution such as power plants, industrial
facilities, and fuel refineries, but also from those sources that are individually too small or dispersed to include under the cap, such as agricultural emissions from the use of nitrogen fertilizers. Similarly, there are means for sequestering carbon dioxide (CO2)—that is, absorbing it out of the atmosphere and storing it safely—in carbon “sinks” such as soils and forests that are difficult to account for under a cap. The United States must adopt alternative mechanisms such as mandatory policies, incentives, and domestic and international offsets to drive emissions reductions and carbon sequestration in these “uncapped sectors” both domestically and abroad. Get document in pdf.

Cap 2.0: Policy Solutions for Curbing Global Warming and Building the Clean Energy Economy

Fact Sheet

The current economic crisis presents enormous challenges for American workers and virtually every sector of our economy. The crisis, however, also provides a tremendous opportunity to address the threat of global warming in a way that ensures long-term environmental and economic sustainability. In the next 20 years, the United States will invest more than $3 trillion in our energy infrastructure -- electric power plants, fuel refineries, and transmission and transportation infrastructure -- and trillions more on reducing the energy consumption of buildings, appliances, and vehicles. If we follow the Cap 2.0 policy recommendations, we can avert the growing climate crisis by reducing emissions of global warming pollution and redirect our resources toward cleaner and energy-efficient technologies that will strengthen our position in the global economy, create millions of quality jobs, and bolster our national security by cutting our reliance on fossil fuels. Get document in pdf.

Fueling the Clean Energy Economy
Solving Global Warming Pollution in the Transportation Sector

Fact Sheet

For nearly 100 years, the United States has operated its transportation system with primarily one fuel: oil. As a result, the transportation sector is now the second largest source of U.S. global warming pollution, contributing 28 percent of all emissions. To solve global warming cost-effectively, we need a trio of policies to drive solutions in each of these areas: 1) an upstream cap on fuel emissions; 2) performance standards for clean, effi cient vehicles, clean fuels, and low-carbon transportation planning that we strengthen periodically; and 3) incentives to overcome market barriers to widespread adoption of low-carbon technologies, practices, and designs. Get document in pdf.

Regulating Trading in the Carbon Market

Fact Sheet

America needs strong climate policy that will boost the economy and reduce dangerous global warming pollution. A key piece of successful climate legislation will be a carbon market that allows non-polluting companies to trade carbon credits. But unregulated or self-regulated trading involves important risks. Climate legislation should require strong carbon market regulations to ensure success. Get document in pdf.

Developing the Technology of the Future
Federal Climate Legislation Can Maximize Low-Carbon Technology Innovation

Fact Sheet

America needs strong federal action to contain the threat of global warming. But a series of barriers stand in the way of the technology innovation needed to develop a clean energy economy at the lowest possible long-term cost to society. Strategically increasing research, development, and demonstration (known as RD&D) funding for low-carbon technologies can help to overcome these barriers and jumpstart innovation. Get document in pdf.

Kick-Starting Building Efficiency
A Policy Workplan for Maximizing the Economic Benefits of Energy Efficiency in Buildings

Fact Sheet

The buildings sector is the largest source of global warming pollution in the United States, including emissions from generating the electricity used in buildings. Buildings and the appliances within them currently account for roughly one-third of U.S. greenhouse gas (GHG) emissions, and that number is on the rise. Fortunately, buildings also offer the quickest and most cost-effective opportunity to reduce global warming pollution while yielding direct economic benefits, saving consumers money and boosting U.S. industry. Energy efficiency measures such as retrofitting existing buildings and increasing the energy efficiency of new buildings can generate net savings using technology that exists today. NRDC recommends a clear set of policy solutions for reaping the immediate benefits of building efficiency. Get document in pdf.

Why Cap and Invest is Better Than a Carbon Tax

Fact Sheet

While there is widespread support for the goal of reducing our emission of global warming pollution by 80 percent by 2050, there is a vigorous debate about the best means for reaching that goal. Advocates for a carbon tax suggest that it would be simpler and more transparent than a cap and invest system, but such arguments often compare a “real-world” cap and invest design with an idealized carbon tax. When factoring in the pressure for special accommodations in the legislative process that will undoubtedly face either system, a cap and invest program is preferable to implementing a carbon tax. The following list offers five reasons, including greater certainty where it counts and more flexibility where it is needed, why a cap and invest system will best help us meet the urgent goal of reducing global warming pollution. Get document in pdf.

Powering Up Renewable Electricity
NRDC's Roadmap for Immediate and Cost-Effective Renewables Deployment

Fact Sheet

Renewable electricity is the energy of the future — it can reduce global warming emissions, moderate the long-term cost of power and help ensure our energy independence and national security by phasing out fossil fuels. To realize these benefits, we must cap carbon emissions which will put a price on global warming pollution while simultaneously helping to launch emerging renewables into the marketplace. Get document in pdf.

Cap 2.0: Investing in America

Analysis

America and the world have reached a crucial juncture on climate change. Comprehensive climate legislation that caps greenhouse gas emissions while spurring a surge in clean energy investments is the best way to achieve the reductions necessary to avoid the most catastrophic consequences of global warming. A "cap-and-invest" strategy would create millions of jobs, make America more secure and restore the United States to a position of world leadership in technology and innovation. Learn more about NRDC's policy recommendations for the next generation of climate legislation, Cap 2.0.

Investing in Our Recovery
Repowering America with a 'Cap and Invest' Climate Plan

Fact Sheet

We must focus our efforts on an economic recovery plan that provides needed short-term stimulus and lays the groundwork for a stable, long-term recovery. Enacting a cap and trade system to limit global warming pollution is an essential component of a comprehensive plan to repower America. Passing legislation to cap global warming pollution can spur investment, create millions of jobs, and help pull our lagging economy forward by providing the opportunity to borrow against the value of future pollution allowances and creating the market signals needed to trigger a surge of clean energy investments. Get document in pdf.