California’s set-aside model

This briefing explores how set aside legislation is being introduced from the outset into California’s cap-and-trade legislation. The Californian scheme contains two strategic reserves of permits: the larger one is an Allowance Price Containment Reserve, which helps prevent both high and low prices in the market. The second is a Voluntary Renewable Energy Reserve which protects the decarbonising efforts of ethical energy consumers. We present these as legislative options that the EU policymakers may wish to follow here in Europe.


Posted on

February 1, 2012