EPA can spark trade market

A section within the Clean Air Act may give the EPA the power to enforce GHG regulations through a market-based system says Janet Peace of the Pew Center on Global Climate Change.

Beginning January 2, the EPA will require large industries to get permits for GHG emissions, showing that they are using the best available control technologies. By complying with these standards, companies can obtain credits which could in turn be traded amongst firms in other sectors. There is also potential for individual states to implement cap-and-trade systems should the EPA set up a model rule to experiment with.