Western Climate Initiative (WCI) - California Cap-and-trade formally linked to Quebec

Overall greenhouse gas (GHG) emissions: 369.2 million (CA) + 74.1 million (QC) ton CO₂e (2020)

The Western Climate Initiative (WCI) is a collaboration of independent jurisdictions working together to identify, evaluate, and implement emissions trading policies to tackle climate change at a regional level. California has been part of the Western Climate Initiative since 2007 and Quebec since 2008. California and Quebec formally linked their cap-and-trade systems through the WCI in January 2014. Compliance obligations for the power and industrial sectors in California's cap-and-trade programme began in January 2013 and expanded to include natural gas and transportation fuels suppliers in 2015. This economy-wide program covers sources responsible for approximately 80% of the state's GHG emissions. Similarly, Québec's cap-and-trade system commenced in January 2013 and also touts economy-wide coverage.

(Sources: wci-inc.org and icapcarbonaction.com)
* excl. Land use, land-use change, and forestry (LULUCF)

Western Climate Initiative (WCI) - California Cap-and-trade formally linked to Quebec

Overall greenhouse gas (GHG) emissions: 369.2 million (CA) + 74.1 million (QC) ton CO₂e (2020)

The Western Climate Initiative (WCI) is a collaboration of independent jurisdictions working together to identify, evaluate, and implement emissions trading policies to tackle climate change at a regional level. California has been part of the Western Climate Initiative since 2007 and Quebec since 2008. California and Quebec formally linked their cap-and-trade systems through the WCI in January 2014. Compliance obligations for the power and industrial sectors in California's cap-and-trade programme began in January 2013 and expanded to include natural gas and transportation fuels suppliers in 2015. This economy-wide program covers sources responsible for approximately 80% of the state's GHG emissions. Similarly, Québec's cap-and-trade system commenced in January 2013 and also touts economy-wide coverage.

(Sources: wci-inc.org and icapcarbonaction.com)
* excl. Land use, land-use change, and forestry (LULUCF)

Regional Greenhouse Gas Initiative (RGGI)

2019 Reported Annual Emissions from RGGI COATS (registry): 59.6 million short tons CO₂. (nine state program with NJ joining in 2020 and VA in 2021)

RGGI is the first mandatory GHG emissions trading scheme in the United States, which launched in 2009 to cap emissions in the power sector. Currently, 11 states participate in the program: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia, each with their own individual CO₂ Budget Trading Programs. Through independent regulations, based on the RGGI Model Rule, each state's CO₂ Budget Trading Program limits emissions of CO₂ from electric power plants, issues CO₂ allowances and establishes participation in regional CO₂ allowance auctions.

(Source: rggi.org)

Alberta Technology Innovation Emissions Reduction (Tier)

Emissions covered by TIER (approximate): 160 million tons CO₂e

The Technology Innovation Emissions Reduction (TIER) regulation implements Alberta's industrial carbon pricing and emissions trading system where emissions reduction obligations are determined according to a benchmarking approach. Although TIER launched in 2020, Alberta has a longstanding history in carbon pricing, starting in 2007 with Specified Gas Emitters Regulation (SGER) (2007-2018) and the Carbon Competitiveness Incentive Regulation (CCIR) (2018-2020). TIER applies to approximately 60% of Alberta's total greenhouse gas emissions.

(Source: ieta.org and albert.ca)

WASHINGTON CLIMATE COMMITMENT ACT (CCA) CAP-AND-INVEST

2019 Greenhouse Gas Emissions Inventory: 102.1 million tons CO₂e

Washington's cap-and-invest program began operating in January 2023 as the second economy-wide program to reduce greenhouse gases in the United States. It covers around 70% of the state's emissions, and its trajectory is consistent with the long-term target to reduce statewide emissions to 95% below 1990 levels by 2050.

(Source: icapcarbonaction.com and ecology.wa.gov)

UK Emissions Trading System (UK ETS)

The UK Emissions Trading Scheme (UK ETS) replaced the UK's participation in the European Union Emissions Trading Scheme (EU ETS) on 1 January 2021

The UK ETS applies to regulated activities which result in greenhouse gas emissions, including combustion of fuels on a site where combustion units with a total rated thermal input exceeding 20MW are operated (except in installations where the primary purpose is the incineration of hazardous or municipal waste). Northern Ireland electricity generators remain in the EU ETS under the Ireland / Northern Ireland Protocol.

(Source: gov.uk/government/publications/participating-in-the-uk-ets/participating-in-the-uk-ets)

EU Emissions Trading System (EU ETS)

The EU ETS operates in 31 countries (28 EU countries plus Iceland, Liechtenstein and Norway). In 2017 the EU and Switzerland signed an agreement linking the Swiss ETS to the EU ETS—the first such agreement for the EU. It is the oldest and largest ETS for GHGs operating worldwide. Introduced in 2005, the system covers emissions from the power, industrial, and aviation sectors (intra-EU flights). It covers around 45% of the EU's greenhouse gas emissions.

(Source: icapcarbonaction.com)

China - Beijing pilot

Total emissions allowance*: 44 MtCO₂e (2022)*Source: Beijing Municipal Ecology and Environment Bureau

The Beijing pilot emissions trading scheme (ETS) was launched in November 2013. The Beijing pilot ETS covers about 45% of the city's total emissions, including those from heat, cement, petrochemicals, and other industrial enterprises; manufacturers; the service sector; and public transport.

(Source: icapcarbonaction.com)

China - Guangdong pilot

Total emissions allowance*: 260 MtCO₂e (2022)*Source: Department of Ecology and Environmental of Guangdong Province

The Guangdong pilot emissions trading scheme (ETS) was launched in December 2013 and is the largest of the Chinese ETS pilots. It currently covers the cement, steel, petrochemicals, paper, domestic aviation, ceramics, textiles and data centers sectors, accounting for around 40% of the province's emissions.

(Source: icapcarbonaction.com)

China - Shanghai pilot

Total emissions allowance*: 190 MtCO₂e (2021)*Source: Shanghai Municipal Bureau of Ecology and Environment

Shanghai was the second Chinese region to start its pilot emissions trading scheme (ETS) in November 2013. The pilot covers around 36% of the city's emissions, including industrial, buildings, transport, aviation, and shipping sectors. The Shanghai ETS is the only pilot that has achieved a 100% compliance rate since its launch.

(Source: icapcarbonaction.com)

Australia Safeguard Mechanism

Australia's climate safeguard mechanism began in July 2016 and applies to businesses that have facilities with direct emissions of more than 100,000 tonnes of carbon dioxide equivalence (t CO₂-e) a year. This covers around half of Australia's emissions.

(Source: www.environment.gov.au)

New Zealand Emissions Trading Scheme (ETS)

The New Zealand ETS was launched in 2008 and requires all sectors of New Zealand's economy to report on their emissions and all sectors apart from agriculture must also purchase and surrender emissions units to the Government for the emissions they are responsible for. Just over half of New Zealand's GHG emissions are covered by surrender obligations.

(Source: icapcarbonaction.com)

Shell Environmental Products desk for enquiries: