Early Action to Reduce Greenhouse Gases Can Reap Rewards Under Federal or State "Cap and Trade" Programs

Senator John McCain’s recent reaffirmation of his commitment to the creation of a cap and trade system for greenhouse gas emissions makes the introduction of such a system in the U.S. significantly more likely, since all three current leading candidates for President support a cap and trade system. Bills pending before Congress would put such a system into effect in 2012. The major federal bills and the already enacted California greenhouse gas reduction legislation encourage potentially covered entities to take action to reduce greenhouse gases before 2012 by offering credits for emissions reductions or offsets achieved prior to the commencement of the federal cap and trade program. Anyone taking such early actions must, however, be able to verify their reductions in order to get credit once the federal cap and trade program is in place.