(Image source: Stand Up For America)
The idea behind cap and trade policies is pretty simple: In order to lower our national fuel emissions, the government puts a "cap" on the amount of carbon emissions the nation can release and then companies "trade" for vouchers which allow them to output carbon from their factories. If they don't have enough vouchers, they can't allow processes to take place which emit further carbon. To those of us in Industrial Power Generation, this is a lot more desirable than having the EPA regulate carbon emissions, a situation which would have dire consequences for those companies that generate power with carbon byproducts. Power Magazine has an article relating to the Electric Power 2010 convention, at which many leaders in the power generation industry gathered to discuss changing trends as they relate to the field of power generation. Of the convention, the magazine had this to say:
"Rarely does unanimity strike a power industry panel, but the APA and its "conservative" cap and trade provisions, according to Connaughton, [Executive VP of corporate affairs at Constellation Energy] recieved a resounding vote of approval from the panel. Connaughton called it a major step forward and said that it "adds creative thinking from the power sector." Murphy [Regional VP of NRG Energy] said his firm was pushing for cap and trade and that it has to happen sooner than later. Trent [Duke Energy Group executive and president of Commercial Businesses] supported the legislation and noted that the EPA will regulate carbon without it. Adams [Senior VP of operations, Calpine Corp.] was favorable toward the bill because it nicely positions efficient gas-fired capacity. The slightest waver came from Kormos, [Senior VP of Services, PJM] who said he was supportive of any legislation at this point just for the certainty of it.
In the industry of power generation, we face several restrictions regarding our carbon emissions. That isn't to say that we're not trying to save the environment ourselves; renewable energy is the fastest growing aspect of our business, and in a time when everyone else is going green, we refuse to be left behind. With that said, carbon offsets being purchased by environmental groups, the actions of the EPA and several other factors may seem like a hindrance to us at times. The 2010 Power Industry Executive Roundtable reminds us that cap and trade is a good idea, because the alternative could be devastating.
To read the full article from Power Magazine, click here:
http://www.powermag.com/issues/features/Industry-Pivots-on-Natural-Gas-Hails-Cap-and-Trade_2810.html
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