Carbon Trading Protocols for Geologic Sequestration
Carbon capture and storage (CCS) could become an instrumental part of a future carbon trading system in the US. If the US starts operating an emissions trading scheme (ETS) similar to that of the European Union's then limits on CO{sub 2} emissions will be conservative in the beginning stages. The government will most likely start by distributing most credits for free; these free credits are called allowances. The US may follow the model of the EU ETS, which during the first five-year phase distributed 95% of the credits for free, bringing that level down to 90% for the second five-year phase. As the number of free allowances declines, companies will be forced to purchase an increasing number of credits at government auction, or else obtain them from companies selling surplus credits. In addition to reducing the number of credits allocated for free, with each subsequent trading period the number of overall credits released into the market will decline in an effort to gradually reduce overall emissions. Companies may face financial difficulty as the value of credits continues to rise due to the reduction of the number of credits available in the market each trading period. Governments operating emissions trading systems face the challenge of achieving CO{sub 2} emissions targets without placing such a financial burden on their companies that the country's economy is markedly affected.
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Organization:
- Earth Sciences Division
- DOE Contract Number:
- DE-AC02-05CH11231
- OSTI ID:
- 948577
- Report Number(s):
- LBNL-1550E; TRN: US200908%%44
- Country of Publication:
- United States
- Language:
- English
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