Recently, Minnesota Environmental Initiative hosted a forum on carbon cap-and-trade. The keynote speaker, former Iowa Governor Tom Vilsack, spoke from personal experience in support of a carbon cap-and-trade policy at the federal level.
He said that throughout this nation’s history Americans have proven their determination and innovation when faced with a challenge—especially if given the right motivation (as with the Industrial Revolution). The current carbon challenge we are in involves new pressures that demand a change from the conventional. These demands range from international to domestic, with cities and states especially beginning to voice their opinions on the matter. Overwhelmingly, they all seem to be saying the same thing: Move forward with a carbon cap-and-trade policy.
The big question now is how it should be done. Carbon cap-and-trade is a simple solution—the real issue lies in our nation’s ability to maintain and improve upon Gross Domestic Product while at the same time reducing our dependence on conventional energy sources and cutting the amount of carbon and other greenhouse gases we emit.
Later in the afternoon, John Larsen from the World Resource Institute spoke more on the details of implementing a carbon cap-and-trade policy. According to Larsen, one must account for many factors when considering a carbon cap-and-trade program; there is not one perfect design model to follow. Even between the two major existing carbon cap-and-trade models in the United States, the Western Climate Initiative and the Regional Greenhouse Gas Initiative, there are few similarities. Larsen’s main take away point came early on when he stated that everyone has their own opinion on what to target when it comes to the key design elements, but essentially the same goal of reducing our carbon emissions remains.
The last half of the forum focused on Minnesota and how a carbon cap-and-trade system will impact our state. Larsen and several panelists discussed that the specific sectors to be impacted most are transportation and electrical production. Meaning, the cost of fuel and electricity will increase with a cap on carbon, since they both utilize the greatest amount of carbon in production. However, Minnesota does rank well among other Midwest states in total carbon emitted. Plus, Minnesota is already a national leader in climate policy and renewable energy production. Keeping with these trends could position Minnesota to do well in a carbon-constrained world.
One thing became clear throughout the afternoon: Change is coming, and the faster Minnesotans prepare themselves for some version of a carbon cap-and-trade system the better off we will fair.
Links to more information:
Design Elements of a Cap-and-Trade System – John Larsen, World Resources Institute
Climate Policy Impacts and Opportunities for Minnesota – John Larsen, World Resources Institute
Minnesota Public Radio Interview with Tom Vilsack
PBS Wide Angle Interview with Tom Vilsack
