Released: 11/30/2007
|
ON November 16, nine Midwestern governors and the Premier of Canada’s Manitoba Province signed the Midwestern Regional Greenhouse Gas Reduction Accord.
Indiana, Ohio and South Dakota are signing the agreement as observers to participate in the formation of the regional cap-and-trade system.
The historic agreement, signed at the Midwestern Governors Association (MGA) Energy Security and Climate Change Summit held in Milwaukee, Wisconsin, will serve as a regional strategy to achieve energy security and reduce greenhouse gas emissions that may contribute to global warming.
During the MGA Energy Summit, states officially pledged to collaborate on a menu of activities.
During the ceremonies, the MGA announced that 10 of 12 states committed to CO2 emissions reductions. However, this report was corrected by respective states: two states did not commit at all (MO and ND); three states – IN, OH, SD – pledged to be observers only; six states committed to the accord (MI, IL, WI, MN, IA, KS); and Nebraska did not participate.
The accord is the most aggressive part of the effort. A summary of the actions it details are:
*Establish greenhouse gas reduction targets and timeframes consistent with MGA member states’ targets;
*Develop a market-based and multi-sector cap-and-trade mechanism to help achieve those reduction targets;
*Establish a system to enable tracking, management and crediting for entities that reduce greenhouse gas emissions; and
*Develop and implement additional steps as needed to achieve the reduction targets, such as a low-carbon fuel standards and regional incentives and funding mechanisms.
The Midwestern Greenhouse Gas Accord does not have the force of law. Signatories commit themselves to greenhouse gas reduction targets and timeframes “consistent with Midwest Governors Association states’ and (Canadian) provincial targets, developing a multi-state/multi-sector cap-and-trade mechanism, and joining the Climate Registry.”
The accord also laid a framework for how a cap-and-trade system will be developed by a working group:
1. Enable linkage to other regional systems.
2. Minimize job losses.
3. Reduce leakage.
4. Credit past and present CO2 mitigation actions.
5. Address integration with potential federal regimes.
Two timeframes were laid out:
1. Within 12 months, the states will complete development of a proposed cap-and-trade agreement and model rule; and
2. Within 30 months, the model rule and agreement will be implemented.
At the press conference afterwards, Governors Doyle (WI) and Pawlenty (MN) noted that it was their expectation that a federal program would be in place before the 30 months ran out. But, they were not going to wait for that.
A working group will be established through the Midwestern Governors Association involving both public and private organizations that will make recommendations to the governors.
|
