Design Issues in Market-based Greenhouse Gas Reduction Strategies Workshop Series

The Design Issues for Market-based Greenhouse Gas Reduction Strategies workshop series addressed critical design elements for developing a mandatory greenhouse gas (GHG) cap-and-trade program.

The cumulative dialogue provides a good representation of the range of opinions that exists among engaged stakeholders. This document summarizes the discussion and highlights key insights expressed by stakeholders over the course of four workshops.

Context

A seemingly endless menu of options is available for designing a market-based GHG emissions policy. Many of the options that have been proposed in recent federal and regional proposals offer significantly different market models and raise fundamental design questions not previously encountered in the development of existing cap-and-trade programs. Although the different design elements will directly influence the economic and environmental implications of any future GHG program, to date they have received only limited attention in ongoing policy discussions.

Supported by the National Commission on Energy Policy and the Edison Electric Institute, the Design Issues for Market-based Greenhouse Gas Reduction Strategies workshop series was intended to engage a wide range of stakeholders in a discussion about market-based programs to reduce GHG emissions. The workshop series was not intended to address overarching issues associated with US climate policy. Rather, the dialogue focused on the most critical market design elements for a GHG emissions trading program if the federal government were to develop a mandatory policy. The series consisted of four workshops held between September and November 2005. The workshops were open to all interested stakeholders (excluding the media). An average of 130 participants attended each session, representing nongovernmental organizations, academic institutions, a variety of industries, and government.